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Frequent Explorer *

How Can I Match a Transfer to a Split Transaction?

I have connected a line of credit and my business account to Quickbooks Online Plus. I pay on the line of credit by transferring money from my business account to the credit account. I'm trying to figure out how I can match the transactions. For example. on the main business account the transaction will say Transferred $600 to this account, but on the credit account side, the transaction is actually $400 to the principal and $200 as interest paid. How can I match the transaction while still keeping track of the interest paid as an expense on the line of credit, because when I go to match it, I can't see anything that would let me split the transaction on one side and match it to the other.

Solved
Best answer 06-10-2019

Accepted Solutions
Moderator

Re: How Can I Match a Transfer to a Split Transaction?

Thank you for choosing QuickBooks Online and for coming back to the Community, Nichole_2019.

 

The expense transaction always shows as a positive figure on the Profit and Loss report. To make sure the interest paid expenses is posted correctly, let's review its category. I'll be glad to help you accomplish this.

  1. Choose Accounting on the left pane.
  2. Select Chart of Accounts at the top.
  3. Locate the Interest Paid account, then double-check the category and detail type.
  4. In case you need to change it, just click the arrow beside Run report and select Edit.image.png
  5. Update if needed.
  6. Click Save and close.

image.png

Once done, run the Profit and Loss report once more. Here's how:

  1. Go to Reports on the left pane.
  2. Enter and choose Profit and Loss Detail.
  3. Set the date range.
  4. Click Run report.

image.png

Here's an article about customizing a report that may come in handy: How to customize reports.

 

Also, check out this one to keep track of the vendors you work with: Vendors overview.

 

Keep me posted on how these steps work for you. I’ll jump right here if you need further assistance.

View solution in original post

8 Comments
QuickBooks Team

Re: How Can I Match a Transfer to a Split Transaction?

Hello @Nichole_2019,

 

You'll need to record your transactions separately in QuickBooks. I'd be glad to help you with this.

 

You can record the payment to your line of credit as a check, and the interest charges as an expense. You can follow the steps below to record a check:

  1. Click on the Plus (+) icon.
  2. Choose Check.
  3. Enter the name of the financial institution in the Payee field.
  4. From the Bank account drop-down, select your business bank account.
  5. In the Account details section, select the credit card.
  6. Enter the payment amount.
  7. Click on Save and Close.

Then, you can record the interest expense by following the steps below:

  1. Click on the Plus (+) icon.
  2. Choose Expense.
  3. Enter the name of the financial institution from the Payee field.
  4. Select the line of credit account from the Bank/Credit account field.
  5. Select Credit Card from the Payment Method drop-down.
  6. Enter the interest charge amount.
  7. Click on Save and Close.

Once done, you can then match your transactions in QuickBooks.

 

Please don't hesitate to let me know if you have any other concerns. I'd be happy to help.

Frequent Explorer *

Re: How Can I Match a Transfer to a Split Transaction?

The only thing I don't understand is that I'm using bank feeds for these accounts. So the payments have already been made and they were brought in through that and I'm trying to sort them out. Should I just disregard the bank feed transactions and do it manually like you said?
Because the transaction in the main Business account shows up as a fund transfer to the credit line, in the description section of the transaction in the credit line account, it breaks it down between principal payment and interest payment.

Does that make sense?

Moderator

Re: How Can I Match a Transfer to a Split Transaction?

I appreciate you getting back to us, Nichole_2019.

Let me help and share some information concerning matching a transfer to a split transaction.

 

If the Line of credit is an Expense account you can have a sub account of Principal and Interest as an expense account. Then you can post your payments on those accounts and it will total to the parent account.

 

You can get more details in this article about adding a sub-account in QuickBooks: How to create a new parent account or sub-account.

 

However, if the Line of credit is a Credit Card.  A transfer type of transaction may not be possible. But you can create transfer then expense transaction to each expense account where it needed to be posted.

 

See the sample screenshot below:

 

 

You may find this article helpful: https://community.intuit.com/articles/1773491-add-and-match-downloaded-banking-transactions.

 

Please get back to me if you need more help with matching transactions in QuickBooks Online. Have a great rest of your day.

Frequent Explorer *

Re: How Can I Match a Transfer to a Split Transaction?

Technically the line of credit is a Revolving credit account with my financial institution. I have it set up in Banking as a credit card. The payments are transferred each month from the business account to that account to pay on the balance. They are both through the same financial institution and I just recently purchased Quickbooks so I'm doing retroactive data entry and trying to sort the transactions so they make sense. So the same amount of money comes out of the main account once a month to pay towards the balance on the revolving credit account, but the actual application of that money each month on the other side varies between principal and interest. 
 

QuickBooks Team

Re: How Can I Match a Transfer to a Split Transaction?

Thanks for getting back to this thread, @Nichole_2019.

 

Allow me to step in and help provide some additional information about matching a transfer to a split transaction in QuickBooks Online (QBO). 

 

I'd like to acknowledge your effort in sharing very detailed information about your concern. Now, since you used your loan account to the online banking for the credit card, instead of showing the transactions to Match, it will show as Transfer on the online banking since QuickBooks is no longer supported a loan account. 

 

In this case, you can transfer the amount from your bank to credit card account and record an expense transaction. It will offset the transferred amount and posted to the correct expense account. 

 

Once done, you can manually match the transactions by following the detailed steps in this article: Add and match Bank Feed transactions

 

If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing. 

 

Here's how to contact our customer support: 

  1. Sign in to your QuickBooks Online company.
  2. Select Help (question mark icon) at the top right.
  3. Select Contact us to connect with a live support agent.

Please know that you're always welcome to post if you have any other questions about matching transactions. Wishing you and your business continued success. 

Frequent Explorer *

Re: How Can I Match a Transfer to a Split Transaction?

I really appreciate all your help in this matter! 

 

I tried this as as a solution for it, So for a $600 transfer into the credit line, I split the transaction into $400 as a transfer into the credit line to record the payment to the principal and recorded the $200 as interest to an Interest Paid expense account. 

 

The problem now though, is that when I ran the report for the Interest Paid expense account, the $200 from that transactions shows up as negative in the Interest Paid account. There are 3 transactions in that account right now, but the other 2 are positive numbers, not negative numbers. I'm not sure which is the correct format for those numbers,  but it's skewing the total of the interest paid. So I'm really confused about this.

Moderator

Re: How Can I Match a Transfer to a Split Transaction?

Thank you for choosing QuickBooks Online and for coming back to the Community, Nichole_2019.

 

The expense transaction always shows as a positive figure on the Profit and Loss report. To make sure the interest paid expenses is posted correctly, let's review its category. I'll be glad to help you accomplish this.

  1. Choose Accounting on the left pane.
  2. Select Chart of Accounts at the top.
  3. Locate the Interest Paid account, then double-check the category and detail type.
  4. In case you need to change it, just click the arrow beside Run report and select Edit.image.png
  5. Update if needed.
  6. Click Save and close.

image.png

Once done, run the Profit and Loss report once more. Here's how:

  1. Go to Reports on the left pane.
  2. Enter and choose Profit and Loss Detail.
  3. Set the date range.
  4. Click Run report.

image.png

Here's an article about customizing a report that may come in handy: How to customize reports.

 

Also, check out this one to keep track of the vendors you work with: Vendors overview.

 

Keep me posted on how these steps work for you. I’ll jump right here if you need further assistance.

View solution in original post

Not applicable

Re: How Can I Match a Transfer to a Split Transaction?

I have been experiencing this same issue with my last two payments to a loan.  Normally the online banking would properly match the payment to the loan account, and then would allow me to go into that payment manually and actually "Split" the transaction further by assigning the proper amounts to principal and interest.

 

But the last two online banking matches made by Quickbooks Online were matched to the proper account as "Transfers"

 

This had me scratching my head as to why I could no longer press the "Edit" button and see the actual payment screen with line by line items.  It would only show me a screen of a transfer with no option to "Split" the payment.

 

So I have figured out that I had to go back and "UNMATCH" those last two payments and re-match them differently.  

 

For some reason, Quickbooks Online now wants to default these payments to a "Transfer" in the match area.  I had not noticed this subtle change until I tried to perform the split.

 

So go back and unmatch one of your transactions, and when you go to "Match" it again, do not use the suggested "Transfer" button that is chosen for you.  Instead, click the button next to "Add" and then you will see the "Split" button at the bottom of the screen next to the green "Add" button.  Here you can click and assign the amount you need to go to the principal and a separate line will be available below that to assign the interest amount to the appropriate account you track you interest in.

 

Hope this helps!

 

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