Hello. I am a new QBO user. In my books  I have a current asset account to reflect expenses that I pay for which are reimbursable to me from my clients. When I incur these expenses they are downloaded to to QBO and show up in a banking (credit card) account. These need to be accepted into my books and placed into an asset account where they sit until my client reimburses me. It appears there are two ways to get these transactions accepted and into the asset account:

1. From the banking account I can "Add" the transaction and select the "Category" to be the asset account

2. From the banking account I can "Transfer" the transaction and select the asset account as the other side of the transfer

I started using option #1 but noted that the transaction then also appeared in my list of "expenses". But it isn't an expense! And the account it ends up in is an asset account not an expense account! So I did option #2 only to find that the Vendor name is then lost because the "Transfer" function doesn't support a Vendor/Payee.

Is there a "correct way" to do this? It seems very wrong to classify the transaction as an "Expense" although if the expense is going into an asset account I assume it would not impact the P&L at all, right??