Yes and no. You can create a current asset account and in QBO you are allowed to create an Expense from a current asset account in addition a bank type account.

 

Or you can perform a JE although name reporting will not be correct

Resolution for 'create a current asset account issue: 'I have a mortgage loan that a portion of the payment goes to escrow for tax & ins. Should I set up a escrow acct in QBO and do journal entries when $ is disbursed?' available: Yes.

The create a current asset account issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the create a current asset account issue yourself by looking for a resolution described in the article. If it is a complex create a current asset account issue or you are unable to solve the issue, you may contact us by clicking here or by using other create a current asset account support options.

For more information about resolving issues related to create a current asset account in Quickbooks/QBO or to get support for the issue 'I have a mortgage loan that a portion of the payment goes to escrow for tax & ins. Should I set up a escrow acct in QBO and do journal entries when $ is disbursed?', click the link below: