I want to record payments we have received from airbnb, is it best to generate an invoice and show a deduction of the commission charge and vat charged on it?

You're on the right track, @contact176. I'll show the way how to record payments for a rental property showing the deduction of the commission and Value Added Tax (VAT) charges in QuickBooks Online (QBO).

Before doing so, ensure the commission and VAT service items are assigned to the correct expense accounts so they will reflect accurately on your reports. Here's how:

1. Go to the Gear icon and select Products and Services.
2. Locate the commission and VAT service items and click Edit under the Action column.
3. In the Income account dropdown, select the appropriate expense account.
4. Select Save and Close.

If the payment is real-time, create a sales receipt and put a minus sign (-) beside the amount of the commission and VAT items to show the deduction.

Furthermore, here's how to return a customer's money in QBO so your accounting stays accurate: Void or refund customer payments in QuickBooks Online.

Let me know in the comments below if there's anything else you'd like to add about recording payments for an Airbnb. We're always around to help. Stay safe.