When creating an invoice for a customer with reimbursable expenses the Time/Costs icon may be grayed out.
There are two possible causes:
If a Cost of Goods Sold account was used you will need to edit the reimbursable expense transaction and use an allowed account type.
If an Other Expense account was used add an extra expense to the reimbursable expense transaction.
Note: If you used an Other Current Asset account in your reimbursable expense transaction please update QuickBooks 2012 to the latest release. See Knowledgebase article SLN56296 for more information.