Billable Expenses QBO Simple Start Workaround

[Lawrence M.]

Looking for guidance/confirmation on a workaround to billable expenses in QBO 2022 without upgrading to Plus or Advance. We have water, sewer, and trash that remain in our names (required by municipality) then we bill the tenants with no mark-up. I understand that Plus/Advance make it simple but can't justify paying those prices if billable expense is the only functionality I need at that level. Not operating as an LLC or other type of business, taxes will be on 1040 Schedule E.

I know that they do include in the default COA "Billable Expense Income" in Income already. I set up a Service in Products and Services and linked it to the Income Account "Billable Expense Income" (BEI). Then I will invoice them using this Service. So when I record payment on this invoice that income will be marked as BEI. My understanding then is that BEI is not taxable revenue and not included in rental income on Schedule E (correct?). 

What I am not sure about or don't understand is the Expense side. How do I record the expense (my payment) to the water authority. Am I missing anything? Assuming, I don't want it to recorded/or be included as a deductible expense at tax time since it is not taxable revenue.