Thank you for your reply Rainflurry this is making more sense now...something came up as I was invoicing a customer hopefully you can guide me, as I understand I would still need to reach out to my accountant but now days connectiong with the community is faster.

When invoicing the customer for shipping, I have created an ITEM called S&H - Type: service -   

ACCOUNT TYPE:  INCOME or COGS?  

I do think is best to use FI and FO, as it can be confusing when reconciling only with using the word "shipping and handling".  These accounts have been already created so trying to work with them but maybe I'll will just rename them. 

Thank you