This is ABSOLUTELY CORRECT!  You do NOT post the purchases/project costs that will be reimbursed by a customer/client, to your expense accounts.  You should set up a balance sheet (other asset/.current asset) account called  "unreimbursed project costs" (or "unbilled project costs").  Then when you make purchases that will be reimbursed they get posted there (debit "unreimbursed project costs" and credit "cash or credit" (however you paid).

When the customer is billed for this cost, you can either add a line on their invoice for "unreimbursed project costs" OR create an item and have it get posted to this asset account (credit "unreimbursed project costs" and debit "A/R").

Overall, the account on the balance sheet ("unreimbursed project costs") zeros out, and the P&L is unaffected.

You do not want to, especially with timing differences, have under or overstated net income for your company, because you have these expenses posted, which really belong to another company!

[email address removed]