• Solarsys
• December 1, 2025

QuickBooks Online: Handling Billable Expenses and GST Reimbursement in Singapore

What Is Reimbursement

Reimbursement refers to the recovery of an expense that you (as the principal) incur from another party. The party repays you for this specific outlay.

In other words, the customer reimbursed you for an expense you covered for them.

What Does That Mean

John owns a trading company. He receives an order from his customer, ABC Company. The customer asks him to deliver the goods to their subcontractor. John charges ABC Company $10,000 for the goods. Later, the forwarder informs John that an additional $500 freight charge will apply. ABC Company reimburses John for this amount. Hence, John records the additional freight charge as a reimbursement in his accounts.

In this scenario, John is acting as the principal supplier to ABC Company. The freight is part of his overall supply of goods, so GST applies when he recovers these costs.

Note:

As a principal, you on-charge costs and apply GST. As an agent, you simply recover your customer’s costs and do not apply GST (the goods and services are supplied to your customer (the principal), not you).

The Double-entry For Reimbursement

Assuming the $500 freight charges are subject to 9% GST (in Singapore), and John’s company is GST registered.

When the forwarder billed John, John recorded it as:

Accounts	Debit	Credit
Freight Expense	500
GST Input	45
Accounts Payable		545

When John invoices ABC Company:

Accounts	Debit	Credit
Accounts Receivable	545
Freight Expense		500
GST Output		45

The freight expense ledger will be a zero balance:

Transaction	Debit	Credit
Bill	500
Sales Invoice		500

Most of the accounting software can handle bills from the forwarder. However, some software may not allow the user to select an expense account in an invoice. In this case, you cannot net off the freight expense ledger itself, but use a freight recovery income account to offset the expense in the financial statement.

So, your Profit & Loss statement will be:

Freight Recovery (income): $500
Less: Freight expense: $500

How To Record Reimbursement in QuickBooks Online (QBO)

You can use the billable expense method in QuickBooks Online to pass the reimbursable cost to the customer. Tick the Billable checkbox and select the customer you wish to invoice for the reimbursement in the Customer/Project column when entering the bill from the forwarder.

The Bill which you have entered:

Accounts	Remarks	Debit	Credit
Freight Expense	Records the expense incurred	500
GST Control	Captures GST Input tax	45
Accounts Payable	Reflects the total owed to the vendor		545

GST Form 5:

Box 5: Total value of taxable purchase: $500 (excluding GST)
Box 7: Input tax and refunds claimed: $45

Note: QuickBooks Online uses one GST Control account (Current Liabilities) to capture both GST Input and GST Output, and separates the two in the GST report based on the selected GST code. For example, the TX GST code (Standard-rated purchase (Input)) is presented in the GST Input tax section, under Box 5 and Box 7.

QuickBooks debits the reimbursable amount to the expense ledger and also records it separately in the Billable Expense table (non-ledger) until you invoice your customer.

After selecting your customer on the invoice, the billable expense will appear on the left side. Click the Add button to add the billable expense to the invoice. Then, select a relevant GST code (e.g., SR 9%—Standard-rated supplies (output)) for the item.

The sales invoice:

Accounts	Remarks	Debit	Credit
Accounts Receivable	Reflects the total owed by the customer	545
Freight Expense	Records the reimbursable amount		500
GST Control	Captures GST Output tax		45

GST Form 5:

Box 1: Total value of standard-rated supplies: $500
Box 6: Output tax due: $45

The advantage of using this method is that you can view billable expenses to identify reimbursements still awaiting from customers.

However, if you prefer to show freight reimbursements and freight expenses separately in the Profit and Loss statement, then you may add a service item for freight reimbursement and use it in a sales invoice. So, the sales invoice would be:

Accounts	Debit	Credit
Accounts Receivable	545
Freight Recovery (Income)		500
GST Control		45

Conclusion

Reimbursements require careful handling to ensure correct GST treatment and accurate reporting. The nature of the supply—whether you act as a principal or an agent—is the determining factor for GST liability.

When recording reimbursements:

• Ensure your accounting software can properly net off the expense and recovery.
• Choose a recording method that provides the clarity you need in your reporting.
• Always apply the correct GST treatment based on your relationship with the customer and the nature of the expense.

If using QuickBooks Online, the billable expense feature helps you track and invoice reimbursable costs efficiently.

For complex cases or GST uncertainty, consult a tax advisor to ensure IRAS compliance.

What if John acts as an agent instead of as a principal? How should he record the disbursement? Let’s discuss this next time.