Yes, ordering fabric for a client and being reimbursed is still considered a business expense, but it is usually treated as a pass-through expense (or "wash") in your accounting, which means it is not deducted as a cost and the reimbursement is not reported as income. 

Because you are reimbursed, you are not out-of-pocket, so you cannot "claim" the expense as a deduction to reduce your taxable income. 

To clarify, you record the $100 as a cost of goods sold (expense).

• You record the $100 received as income.
• The revenue and expense cancel each other out, resulting in the same net zero profit

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