"problem" with billable expesnses

The following screen:

is made by one sales invoice:

and one purchase invoice:

I think the Income figure in the first screen is wrong, it should be 110 and not 10

There are at least 3 bug reports already about billable expenses. All may be related to what you show. There have been some other reports as well that have not been moved into the category until the matter can be investigated.

How did you generate the sales invoice in your example? Did you create it from the Customers tab?

I am also curious how you got Accounts receivable of 136,40 from a single sales invoice for 100 plus 24% tax.

The procedure of creation of sales invoice is like this,
Create new Sales invoice
Choose customer
In the line I chose Billable Expenses and then I place the amount.
Then I go to Billable expenses tab and for the specific expense I choose “Invoiced” and complete the Sales Invoice Reference

This is easy, the sales invoice is 110 + 24% tax = 136,40

My disagree is that in the “Summary Screen” (first screenshoot) the “Income” figure (in the upper right corner) should be 110 (equal to the sales invoice) and not 10, which is the “Net Profit” as you can see in the same screen at the lower right corner

No, but the result is the same

Your screenshot of the invoice shows100 not 110

You are not doing this correctly. You should create the billable expense, then go to the Customers tab and select Uninvoiced and create the sales invoice from there. See https://www.manager.io/guides/9652.

@Joe91’s comment is what was confusing to me before. That is why I asked how you got the number.

Also, is this test company set up for accrual or cash accounting?

You are right,

wrong copy paste, now shows the right sales invoice

@tut I have done also this way.
the result is the same no matter the way you create the sale invoice.
The Income in the first screen will remain 10, instead of 110
The setup is for accrual

OK. Now that we have the right information, everything you see is correct, based on your inputs. Billable expenses do not appear in your income once they have been invoiced. They are things you purchase on behalf of your customer, and they are passed through to your customer. Neither the income nor the expense appears as yours. In your example, you bought something for 100, invoiced the customer for 110. Your only income is the markup of 10. Thinking of this another way, if the 100 was also included in your income, it would then be included as your expense. The net profit would be identical.

Not knowing your tax laws, the question is whether you should have applied the tax code on both purchase and sales invoices. Your law will determine who was the end user. The possibility exists that your customer was only responsible for reimbursing you for the tax you paid, not for additional tax. The way you have entered things, you are assuming both portions of the transaction are taxable. Thus, the net tax liability is 24% of the markup, or 2,40. Please understand, this could very well be correct. I simply do not know your laws.

But in this case the turnover for my company is 10 , instead of 110 that it should be. How can i correct this?

You cannot correct it because it is not wrong. The basic principle behind the Billable Expenses tab is that those expenses are not your company’s. Therefore, reimbursement of them is not income.

If you want them to be included in your income and expenses, the solution is simple: do not use Billable Expenses. Treat them as ordinary purchases and sales.

I think it is wrong. The turn over - income it should be 110 and not 10. This is the definition of turnover:
“the amount of money taken by a business in a particular period.”

As I said, you have a choice. So there is no point arguing about it. If you use billable expenses, those expenses and your invoices for them do not show up on your profit and loss statement. If you treat them as ordinary purchases and sales, they do. It is not wrong; it is an optional method for accounting for things you buy for customers. If you don’t like it, disable that tab after editing all previous billable expense entries, or just stop using it. You can have it either way.

In some jurisdictions, it might not even be legal to use for the reason you point out, but in many it is.