How to split a transaction in QuickBooks Online?

How to Split a Transaction in QuickBooks Online?

When working with financial transactions in QuickBooks Online, you may come across instances where a single transaction needs to be split into multiple categories or accounts. This can occur when a transaction involves multiple expenses, income sources, or virtual accounts. Fortunately, QuickBooks Online provides a simple and convenient way to split transactions. Let’s dive into the steps to split a transaction in QuickBooks Online.

1. Create or open a transaction: Start by creating a new transaction or opening an existing one. This can be an expense, payment, deposit, or any other transaction type that allows splitting.

2. Select the transaction category: Assign an appropriate category to the transaction based on the main purpose of the transaction, such as expenses or sales.

3. Click on the Split button: Look for the “Split” button, usually located below the transaction amount field, and click on it to enter the splitting details.

4. Enter the split transaction details: In the split window, you will see a table with rows to enter the split details. Each row represents a portion of the transaction that needs to be categorized separately.

5. Allocate amounts: Assign the amounts for each category in the split window. QuickBooks automatically calculates the remaining balance based on the entered amounts.

6. Add more split rows (optional): If you need to divide the transaction further, you can add more split rows by clicking on the “Add More Lines” button.

7. Categorize the splits: Assign appropriate categories to each split row based on the specific expenses, income sources, or accounts involved.

8. Enter additional details (optional): If needed, you can input additional information, such as memos or classes, for each split row.

9. Review and save: Double-check your split transaction details to ensure accuracy, and click on the “Save and Close” button once you are satisfied.

10. View the split transaction: To verify that the split was successful, go back to the transaction list or account register and locate the split transaction.

Splitting transactions in QuickBooks Online can be a powerful tool for accurately categorizing and reporting your financial activities. Here are some frequently asked questions about splitting transactions, along with brief answers:

FAQs:

1. Can I split a transaction with both expenses and income?

Yes, you can split a transaction to allocate amounts to both expense and income categories if needed.

2. Is there a maximum number of splits allowed per transaction?

QuickBooks Online allows you to split a transaction into up to 200 individual splits.

3. Can I split a transaction evenly among multiple categories?

Absolutely! QuickBooks Online offers an option called “Split Evenly” that divides the transaction amount equally among specified categories.

4. Can I split a transaction across different bank accounts?

Yes, you can split a transaction across multiple bank accounts by assigning the appropriate accounts to each split row.

5. Can I split a transaction by percentage instead of amount?

No, QuickBooks Online currently only supports splitting transactions by predefined amounts, not percentages.

6. How do I edit a split transaction?

To edit a split transaction, locate the transaction in your account register or transaction list, open it, and click on the “Split” button to modify the split details.

7. Can I duplicate a split transaction?

Yes, you can duplicate a split transaction by selecting it from the transaction list or account register and choosing the duplicate option.

8. Will splitting a transaction affect my account balances?

Splitting a transaction does not affect your account balances directly. It simply categorizes the transaction based on the specified split details.

9. Can I split a transaction on the mobile version of QuickBooks Online?

Yes, you can split a transaction using the mobile app of QuickBooks Online. The process is similar to the web version.

10. Can I undo a split transaction?

Yes, you can undo the split transaction by editing it and removing the split details or by deleting the transaction entirely.

11. Can I split a transaction that has already been reconciled?

Yes, you can split a transaction even if it has been reconciled without affecting the reconciliation process.

12. Are split transactions included in reports?

Yes, split transactions are included in reports, allowing you to view and analyze the divided amounts across different categories or accounts.

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