What is expense rebilling and how is it treated for accounting purposes. Is it Revenue?

Question

when does one recognise rebilling as revenue. Here is a scenario company a occurs expenses but rebills them to company b. company a manages sales for company b

Answer 1

Company A I-N-C-U-R-S expenses while under contract with Company B. Company A will charge a fee for the work. Company B will reimburse Company A for the money spent in order to get the job done. The fee charged by Company A is income. Reimbursement for expenses incurred, is not income. Usually a fee charged by a company will cover everything, including necessary expenditures. Not always, however; sometimes it is wise to insist upon a separate, detailed listing of expenses.