Q. Does it really matter if I try to maneuver out-of-pocket funds into DS' account?
A. Simple answer: no. As long as the student is claimed as a dependent, on your return, you can claim the AOTC, whether expenses were paid with your out of pocket (OOP) or his or anybody else's (e.g. grandparents or taxable scholarship)
Q. Since I declare him as a dependent, his taxable scholarship is treated like my out-of-pocket money?
A. Not exactly. It just doesn't matter who's OOP it is, as long as he is your dependent.
