How to bill customer for shipping

How do you bill individual customers for shipping and handling? I have a small Ebay business as part of my business venture and regularly charge shipping and handling for products. Is that Billable Expenses?


Billable Expenses would be a poor choice in your situation. That’s really meant for purchases made on behalf of your customer and later reimbursed, such as travel expenses.

You should just add another line to the sales invoice. Allocate the shipping expense you are invoicing to the customer to an appropriate income account.

If you are adding a line to a sales invoice, wouldn’t you be allocating a charge (not an expense) to an appropriate “income” account. If you allocated the charge to an expense account (say Postage & Freight) the account would be in profit due to the recoverable “shipping” probably having a mark up and the “handling”, generally not having any directly associated costs.

You could create a “Sales Invoice Items” under Settings to automate the charge on the sales invoice, leaving the unit price blank

Two options

  1. Take the total sales amount from eBay and put that in a single line in a Sales Order or Sales Invoice.
  2. In Sales Order or Sales Invoice use a line for the product/service, then add another line and enter in the delivery price.

You are correct. I mis-typed my response because I was thinking of entering the actual expense amount into the income account. I have edited my earlier reply to correct and hopefully clarify. Of course, when the shipping bill is paid, that is entered into the appropriate expense account, balancing the prior entry into income. (This assumes you are charging exact shipping and not marking it up.)