The first step to charge customers or clients for vehicle mileage is to create a new Item with a type of Service or Other Charge. The Sales Price that you enter for this Item will be the price charged to the customer for mileage.
QuickBooks maintains a separate list of Mileage Rates, but these rates are not automatically used to invoice customers. Instead, they’re just a reference for the historical rates allowed by taxing authorities.
Click on Lists->Item List to add a new Item. Be sure to specify the Type as Service or Other Charge, and to select the This item is used in assemblies or is a reimbursable charge checkbox just below the Item Name/Number field.
Specify both an Expense Account and an Income Account for the Item you create. Enter the description you’d like to appear on customer invoices and the rate you’d like to charge customers for mileage in the Sales Information block.
Click Ok to save the Item.
You’ll use this item code on customer invoices and to identify those mileage expenses that will be billed to a customer as a reimbursable expense.
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