Split a transaction which is part income and part expense

Abbo · ‎September 28, 2019

Help please! Not sure if anyone has a solution to my problem - I run a B&B on my own and am both disorganised and short of time. I run my accounts mostly by whizzing through downloaded bank statements and sorting into different accounts from there. I don't do invoices as I just take payment as people leave, so I record payments as sales receipts as they appear in my bank statements. Great for saving time. However, I now use a small card machine - sumup - which transfers the funds after deducting the transaction fee. If I just record this as income it's not a true indication of what I earned, as it's without the bank fee. But I don't know how to most simply and efficiently manage the real income (eg £70 for a night stay) against the £68 that comes into my account, with the fee deducted - one being income, one being expense. I tried splitting the transaction to manually add the fee deducted, but I can't have both income and expense in a split in one transaction. It's complicated further if it's several people's payments bundled in together... I'm going in circles trying to avoid too complicated inputting and reconciling, as knowing how things get here it's likely things will fall through the cracks or not be reconcilable! I thought about manually inputting expected income, but then I can't match it to the amounts that come in, which will be without the fee. Do I have to manually record the extra income for each transaction and go in and type the £2 extra that was deducted???? That seems so incredibly painful. Does anyone out there have a similar problem that they've found a neat solution to??? Because I'm a novice if I start experimenting I tie myself in knots and make an awful mess of my accounts. Many thanks, in hope.

Charies_M · ‎September 28, 2019

I'm happy that you reached out to us, Abbo.

Let me guide you through on how to handle and record split transactions in QuickBooks Online (QBO).

You can enter the £2 as bank fee together with the £70 sales receipt by creating a Bank Deposit.

Here's how:

Go to the Plus icon.
Choose Bank Deposit.
Check the box for the Sales Receipt.
Under Add funds to this deposit, enter the £2 bank fee as negative.
Click Save and close.

And you're all set. You can now match your Bank Deposit to your downloaded transactions.

You can always get back to me if you have other questions and I'll do my best to help you out.

Abbo · ‎September 29, 2019

Thank you so much!!!! I'm very grateful for the help. Will try this now and see what happens! Many many thanks

Abbo · ‎September 29, 2019

I don't have the option for type which would allow me to identify sales receipt. Am I missing something obvious, or am I on a more limited version?

RenjolynC · ‎September 29, 2019

Good day, Abbo.

It's possible that the sales receipt is posted directly to the bank. Let's open the sales transaction and make sure to select Undeposited Funds from the Deposit to drop-down list. This way, we can select the sales receipt on the Bank Deposit page.

Here's how:

On the left panel click Invoicing, and select All Sales.
Click Filter and select Sales Receipts from the Type drop-down menu.
Choose the Date and Customer.
Click Apply.
Select the sales receipt to open and change the Deposit to field to Undeposited Funds.
Click Save and close.

Then, go to the Create (+) section and select Bank Deposit. You can follow the steps provided by Charies_M.

Once done, you can start adding and matching your downloaded bank transactions.

Please let us know if you have more questions related to this concern. Thanks.

Abbo · ‎September 29, 2019

I have managed to input today's income as a bank deposit split into 2 transactions - one as income, and the second part as a bank fee (hooray! - both are allowed), input as a minus sum, so the total I now have should match the amount that will appear on my statement. Just to be clear (sorry to be dim, just checking as previous experience has meant I've tried inputting transactions that appear as double because of my ignorance in inputting) - if I manually put in the transaction this way, when it is downloaded in my bank feed in a few days it will find and match it? Or at least I can manually find and match it? I don't have to search for a transaction after it's downloaded from the bank?

Only checking as your screen and mine don't match. But hopefully the process is the same.

thanks so much for your help on this. I want to get it right to avoid a headache later in the year.

Anonymous · ‎September 29, 2019

Hi there, Abbo.

It's great to know that the steps helped you record the split transactions correctly.

Regarding about when the statement is downloaded to QuickBooks Online will it matched? Yes, you'll see the Match link on the transaction from the Banking page. It means it has a corresponding matched entry that has the same date of transaction.

Click on the Match link and you'll then see the letter "C" beside the deposit in the register. It shows that it's already cleared.

If the statement doesn't show the Match link, you'll use the Find match function. This helps you to find for all possible matches for this transaction.

Here's an article for a reference: Download, match, and categorise your bank transactions in QuickBooks Online

I'm sure we've got everything you need if you have other questions. We are always here for you.

Topics

Training

Community

Resources

Split a transaction which is part income and part expense