While there is no automated process for tracking mileage, it can be done by entering a bill and making the employee who is to be reimbursed a vendor/supplier. We don't have a place to track mileage that isn't to be reimbursed.
Because employee names and vendor/supplier names cannot be exactly the same, slightly vary the names in Display Name As field. For example, add a V to the end of the vendor/supplier name. Be sure to use the right one in your transactions. When you select the name on a screen such as Enter Bills, the drop-down menu only displays Vendors/Suppliers; therefore, make sure all the Employees that you'd like to track mileage for are also a Vendor/Supplier.
Make sure to set up a new expense account for mileage, if it's not already within your Chart of Accounts.
- Choose the Gear icon > Chart of Accounts
- Click New
- Follow the new account interview. Click Finish once complete
Make a new Product/Service for mileage:
- Choose the Gear icon > Products/Services
- Click New
- Enter the name (we suggest Mileage)
- Check I sell this product/service to my customers and check I purchase this product/service from a vendor/supplier.
- Enter a description and the amount you pay per mile under the Purchasing Information.
- Assign the mileage expense account you just created.
- Click Save.
Now that your employee is also a vendor/supplier, and you have mileage as an expense account in your Chart of Accounts and as a product/service item you can enter and pay the bill:
- Click the Plus ( + ) sign icon and Bill. When filling out the form, choose Itemize by Product/Service instead of Itemize by Account and choose Mileage from the Product/Service drop-down menu. The description and amount will auto-fill along with the rate you chose when you set up the product/service for mileage.
- (Optional) If you wish this expense to show as an expense to the customer, whether billable or not, be sure to include the customer's name, and/or click Billable in this transaction. IMPORTANT: Billable expenses is an option that's only available in QuickBooks Online Plus.
- The Use Billable Expenses preference puts a Billable check box on purchases you make, such as when you create a Bill, Write Check/Cheque, Credit Card Expense or Cash Expense. Checking Billable lets you specify that an expense should automatically flow to a customer's next invoice.
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To turn on Billable Expenses:
- Click on the Gear/Cog and choose Company Settings
- Click the Expenses section.
- Select Track expenses and items by client
- (Optional) Review and set the preferences for marking up and tracking billable expense income. (This is where you can decide how you wish your Profit & Loss report to reflect Billable Expense Income.)
- Click Save.
Turning on Use billable expenses and products/services turns on expense tracking by customer and multiple split lines, so you can more easily enter billable expenses.
- Pay Bill by clicking ( + ) and Pay Bills. This will reimburse the employee and add the amount on your Profit and Loss for use in determining the deduction at the end of the year.
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