Expense Markups and Reimbursable Settings

When you bill expenses to a client, you often need to add a markup — for handling, processing, or simply as part of your fee structure. You may also need to track which expenses should be reimbursed to the employee who paid out of pocket. These settings are configured at the individual expense entry level.

Markup Ratio %

The markup percentage adds a surcharge to the expense when it appears on an invoice. For example, if the expense cost is $100 and you set a 15% markup, the client will be billed $115.

• Set the markup when entering or editing an expense — expand the row by clicking + and enter the Markup Ratio %.
• Leave it at 0% if you want to pass expenses through at cost.
• Common markups range from 10-25% depending on the industry and expense type.

Reimbursable (Yes/No)

Mark an expense as Reimbursable if the employee paid out of pocket and should be paid back. Non-reimbursable expenses are company costs that won't be refunded to the employee but may still be billed to the client.

Use the Reimbursable Expense Report (under Reports) at the end of each pay period to see all outstanding reimbursements and process them through payroll.

Taxable (Yes/No)

Indicates whether tax should be applied to this expense on the invoice. Your firm's tax settings (configured in Admin > Settings) determine the rate applied.

How These Settings Interact

An expense can be both reimbursable to the employee and billable to the client with a markup. For example, an employee pays $50 for parking, you mark it as reimbursable (employee gets $50 back) and set a 20% markup (client pays $60 on the invoice). The $10 difference is revenue.