Square POS transfer the cost of an item less their transaction fee to my bank account. Is there a way to split the transaction between an income a/c and an expense a/c?

Hi there, tr-grappenhall. Yes, you can divide the cost to properly record both the gross income and the transaction fee using the Split feature in QuickBooks Online.

Here's the step-by-step:

1. Log in to your QuickBooks Online account.
2. Navigate to the Bank transaction tab and choose the specific transaction.
3. Click Split and Fill in the necessary columns.
   
4. In the two lines:
   Line 1: £98.25 for the Amount to your Income account (item category)
   Line 2: £1.75 to an Amount Expense account (Transaction Fees)
   
5. Once done, click Split and post.

Next, you can review the transactions in the Posted tab by filtering the Date. Please see the sample screenshot for reference: 

Please let us know if you have additional questions or concerns.