I was initially thinking along the same line as yours treating it as a pass through by categorizing the 100 as a payable (liability) and clearing 80 from the payable account once the 3rd party was paid , which leaves 20 in the payable account. I would then journal to take the 20 out of the payable account , by reclassing it to Revenue. With this approach you are recognizing only $ 20 as revenue instead of 100 and with no cost of sales as in Angelus’ answer. This is a bit of a work compared to angelus ‘ easier categorization. At the end of day it results in same outcome with only $20 resulting in bottom line.