Why the Sync Error occurs
When you turn on the setting for "Track Expenses and items by customer" and select to "Make expenses and items billable" in QuickBooks Online, you will have a section to choose one of two options for the Billable expense income account. You can choose to track in a single account or in multiple accounts.
The error occurs if you have chosen the second option for multiple accounts and it was not set up properly.
How to Fix the Sync Error
The second option is titled In multiple accounts. To complete the setup properly, all expense accounts used for billable expenses need to be edited. Check Use for billable expenses and assign an income account. If this step is not completed, this error will occur when marking an expense transaction billable.
To see and update what option you have selected, in QuickBooks Online:
- Click the gear icon and choose Company Settings
- On the menu to the left, click Expenses
- Click the Bills and expenses section
- View your selection under Track billable expenses and items as income
- Make any necessary changes
If continuing with option two, assign the desired billable expense account(s) to an income account to clear the error. The following must be completed by a QuickBooks Online Master Administrator. Other users in the company file will not see Step 3:
- Click the gear icon
- Choose Chart of Accounts
- Click once to highlight the desired expense account
- Click Edit
- On the Account screen, click on Use for billable expenses and select an Income Account from the drop-down menu
- Click Save