USA Pass though expense

[yoda28]

Hello everyone!

I wanted to know whether using an expense account was the proper way of accounting for a pass through expense. For example, crediting Postage expense when receiving $ from a guest and then when receiving invoice posting a debit to that postage. Hope that makes sense.

Another ex. would be crediting Laundry COGS when charging a guest for it and then debiting that account when receiving invoice from laundry vendor.

Thank you so much!

 

[kirby]

It's ok if the total of all customer amounts is small relative to the expense. That's probably true for postage but may not be true for laundry. Also i imagine for laundry you charge the guest cost plus a fee? If so belongs as a revenue item and not expense offset.