Manage Suppliers and Expenses

I'm glad to assist you in setting up a disbursement category in QuickBooks Online (QBO) for line items that represent chargebacks to customers without showing them as income, @Tom713.

We can create an account under the Other Current Assets in your Chart of Accounts. We'll link this to the service item which we will be creating too.

Let's set up the Other Current Assets account first. Here's how:

1. Log in to your QBO account and navigate to the Chart of Accounts. You can find this under the Accounting or Settings menu.
2. Click on New to create a new account.
3. In the Save account under and Tax form section dropdowns, select Other Current Assets.
4. Give the account a name, such as Customer Disbursement, Pass-through Costs, or whatever you want to call it.
   
   
    
5. Optionally, you can provide a description or additional details about the account.
6. Hit on Save to complete the setup.

Next, let's create a service item:

1. Go to the Sales menu then select Products and services.
2. Click on New to create then select Service.
3. Name the service.
4. Under the Income account, select the account we created earlier. In my example, I'll choose Customer Disbursement.
5. Hit on the I purchase this purchase product/service from a vendor option. 
6. Under Expense account dropdown, select Customer Disbursement.
   
   
    
7. When done, hit on Save and close.
8. Repeat the steps if you need to create more service items.

Now when creating your invoices, you just have to select the created service item that is linked with the Other Current Assets account. 

Moreover, I'll be including this helpful article to help you show specific accounts or customers on your reports and even format the layout so the right data show up: Customise reports in QuickBooks Online. 

Please reach out to me if you have any other issues or concerns in managing your invoices, and I'll get back to you. I'm always here to help. Have a good one!