Client charges thier customers a u201Ctrip chargeu201D for a service call visit to their location. This is a flat amount that is added to the invoice with no associated direct cost. In their old old system, they accounted for this by crediting a contra-expense account called Vehicle Recovery.
Tried to create a new item with GL accounts to Item Level, but it wonu2019t let me add an expense account in the revenue account field.
How should this be handled?
Contra expense means revenue. This should not be in the expense account. No matter with cost or not, it belongs to revenue category since your client charge customer for it.