New to QB and need help. We often do work as a subcontractor and things like travel and meal expenses are passed through (we get reimbursed in full) to the prime contractor. How do we set this up properly in QB? We understand Meals/Entertainment would be used for our own clients, but not in this instance since it's a pass-thru expense. Any help would be appreciated.
As a contractor/sub-contractor you are a 1099-MISC worker. I would categorize the expenses as meal & entertainment as you have already stated and any reimbursements for the meals & entertainment would be considered income for the job. There is no pass through account to categorize the income. The transaction becomes a wash. A break even for the meals & entertainment.
If you would like to take it even a step further you can allocate the reimbursement for meals & entertainment directly to the meals & entertainment account. This will decrease the meals & entertainment expense.