I am having this same issue except with time tracking. We have unselected the billable box but we are using the customer to track the expense vs the income.  It is automatically putting it in the billable expense and slowing our quickbooks down when we are trying to create an invoice for our customer. We have to be able to track the expense for labor per customer but we do not want to bill it. We have changed the preferences and this has not fixed our issue. It still appears in the billable expenses, and I read online that it is because we have a customer listed on the time tracking. But in order for our P&L's by customer to be correct we have to list the customer. I looked at our unbillable costs and there thousands of unbilled costs back from 2017. We have hidden them but how do we stop this from happening in the future???Please help.