How to handle expenses on invoices for tolls, parking, shipping, etc.

In most cases, the expense is going to be paid by the business and if using QuickBooks or Peachtree with ESC, the vendor would be cut a check in the accounting program and the expense coded to the appropriate area there.

In ESC, a billing code could be created for these same expenses to bill the customer for the costs as well as to have the costs applied to the invoice for sales reporting purposes.

1. Create a material billing code in ESC by going to Sales→Enter Billing Codes and ensure that the Cost Debit and Cost Credit accounts are both set to the same exact account to create a financial wash. A financial wash is where the same account is both debited and credited for exactly the same dollar amount. The income account may be specified or left blank.
2. When billing a customer for the expense, add the billing code to the invoice, specify the appropriate cost and retail amount and save.
3. When the invoice posts to the accounting program, the money will not impact the account that it was applied to as it will debit and credit the account for a net effect of zero dollars. However, in ESC you will have valid sales and cost dollars to run sales reports with.