Expense payments made to 3rd party on behalf of clients

I can share the steps for you to handle this type of transaction in QuickBooks Desktop, @study-co.

There are 2 options to handle this concern. First, you can create a bank deposit for the amount you received and a bank transfer for the payment towards the vendor.

As a second option, you can also use the billable expense option in the program to create a bill for the vendor and receive payments from students. Here's how:

1. Click Vendors menu, then Enter Bills.
2. Add the school in the Vendor field.
3. Input the expense account for the tuition you're paying to the school.
4. Enter the student's name in the Customer: Job field.
5. Mark the Billable box.
6. The Amount field should be the same as the amount the student paid. See this:
   
7. Click on Pay Bill, and Yes if you see a prompt.
8. Press Pay Selected Bills.
    

After this step, create the invoice for the student's payment. Here's how:

1. Tap the Customers menu, then choose Create Invoices.
2. Select the student's name, and there should be a pop-up about a billable amount outstanding. Choose the first option.
   
3. Press OK.
4. Mark the bill you created earlier then OK.
5. Once done, press Receive Payments at the top. Click Yes to the prompt.
6. Click on Save & Close.

That should record the entry for the income and expense. With regards to the commission, you can simply create an invoice for the school. This time you need to add the school as a customer.

Please come back here if you have other concerns with the steps or other features in QuickBooks. I'll be right here to help.