Thanks for posting here, @Luluwawa,

Since the income isn't part of your books, you can consider it as a liability. You can use these steps to record income collected for a third-party holder.

Step 1: Create a trust liability bank account: (optional)

1. Go to the Gear Icon then pick Chart of Accounts.
2. At the top of the screen, click New.
3. Use Bank Account for the Category Type.
4. Select Insurance account under Detail Type.
5. Enter the name you want. Example: Insurance Liability Bank Account, or leave the account name as is.

Step 2: Create a trust liability account:

1. Choose the Gear Icon then Chart of Accounts.
2. At the top, press New.
3. Select Other Current Liabilities under Catergory Type.
4. Use Insurance Accounts – Liabilities under Detail Type.
5. Enter the name you want the hit Save.

Step 3: Create a product or service item that uses the trust liability account

1. Tap the Gear Icon then Products and Services.
2. Click the New button.
3. For the item type, you can use Non-Inventory if the products is not part of your own inventory.
4. In the Name field, enter a description for the product or service item. Example: Retainer.
5. Click the Income Account drop-down and select a Insurance Liability account.
6. Press Save.

When you issue a bill, use the same Trust Account category to post the funds correctly. Regarding the second scenario, using invoices and bills will automatically put the transactions in the A/R and A/P accounts.

However, we still recommend consulting with an accounting professional for this. This way they can advice on how to handle your accounting and help you record credit card interests.

Please update me if you have more questions about recording customer transactions in QBO. I'll be more than happy to help whenever you need me. Have a nice day!