cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Assign payee to a split transaction downloaded from bank

I am trying to correctly categorize a downloaded banking transaction.  This was two separate ACH transactions that my bank combined in to one lump sum since both ACHs were sent on the same day.  I am having to split the transaction to correctly categorize.  The total transaction downloaded was $6,750.  $6000 of that is a shareholder distribution and $750 was a vendor payment.

 

I can easily split the transaction and correctly categorize to the appropriate equity and vendor expense account.  However, I am not able to add the vendor as the payee to just their portion of the transaction.  It is assigning the payee to both the shareholder distribution and the vendor portion of the transaction.

 

I do have a bill recorded for the vendor portion which I can match to the $750 but I do not know how to record the shareholder distibution portion to match the $6,000.  I dont think I should set up a bill or expense for the shareholder distribution portion.  Should it be a journal entry that I can then match through the banking page?

 

If a journal entry is the appropriate method, how do I set it up?  I have tried doing it by debiting the bank account and crediting shareholder distribution equity account.  But that actually makes the equity account go in the wrong direction since the shareholder distribution is represented by a negative figure in my balance sheet.  By crediting that equity account, it makes a smaller negative number.

1 Comment
Highlighted
Community Champion

Assign payee to a split transaction downloaded from bank


Hello @reliancebrokers:

 

This is actually a great example for use of the clearing bank account. You will flow those two transactions to the clearing account and then make a transfer to the actual bank account so you can match it with the bank feed and show the correct amount that came out of your operating account.

 

https://youtu.be/O_bw7Uzc9Hw

 

 This was actually a topic for another discussion but the same premise applies.

 

I hope that helps if you have more questions feel free to reach out. 

 

Lynda

Need to get in touch?

Contact us