I have an income on my bank account that has to be used for specific expenses. Then, I have a bunch of invoices that equal that same amount. So basically I’m spending a specific amount of money on approved expenses.
Is tracking codes something that can be used to match these two together, and if yes is there a way to get a report out of it? Or is there a better way to do this?
Thanks.
Consider using billable expenses:
https://www.manager.io/guides/how-to/record-billable-expenses
https://www.manager.io/guides/how-to/invoice-billable-expenses
If the expenses are incurred specifically on behalf of this customer, billable expenses is a perfect way to handle them.
The question is, are you actually receiving an income or just a reimbursement - even if it is received in advance.
Who is paying this “income” - if a customer then use Billable Expenses as mentioned above, if someone else, then create a Balance Sheet account (asset or liability) named “??? Clearing” and post all the related transactions there so that when they are matched off the account balance will be zero.
thanks all for the explanations.