How do I split a downloaded transaction between both an invoice and a category?

Hello, Kirkk. 

We're going off a tangent here. I'd like to help us get back on track, and I'll also clarify the details given by KurtKyle_M in splitting the downloaded bank transaction. 

There are two ways to do this. First, let's take a look at KurtKyle_M's reply. 

It looks like they want us to create a payment for the invoice first, then use the Bank deposit function to create a split between the invoice payment and the category. 

First, create an invoice payment: 

1. Open the $200 invoice, then click Receive payment. 
2. Set the correct Payment date. 
3. Under Deposit to, select the Undeposited funds account or the Payments to deposit account. This is important since we're going to make the split on the Bank deposit screen later on. 
4. Check the invoice, then add any other information such as a reference number or a memo. 
5. Once done, click Save and close. 

The Receive Payment screen would look similar to this: 

Now, let's use the Bank deposit feature to create the split:

1. Click the + New button, then select Bank deposit.
2. Select the correct bank account under Account, then set the Date of the deposit. 
3. Under Select the payments included in this deposit, check the invoice payment we created. 
4. Under Add funds to this deposit, select the category or account where you want to post the $400 split under the Account column.
5. If needed, select the customer profile under Received From.
6. Add any other information such as the Description, Payment Method, or Memo. 
7. Once done, hit Save and close. 

The Bank Deposit screen would look similar to this: 

Finally, let's deal with the downloaded bank deposit of $600. The idea here is to match it with the deposit we created. Here are the steps: 

1. Go to the Banking page, then select the box for your connected account (where we recorded the payments and deposit). 
2. Find the downloaded transaction. Normally, QuickBooks would automatically mark the entry as a match to the deposit we created. 
3. Review the entry, then click Match. 

Another way to do this is to use the Split function on the Banking page. Personally, I like doing this option since this involves less navigation. 

We don't have to create a bank deposit using this method. We're going to use the Banking page to create a split for the category and the invoice payment. 

Here are the steps: 

1. Go to the Banking page, then locate the $600 bank deposit.
2. Click the Split button.
3. Under the Received From column, select the customer on the first line (where you recorded the $200 invoice). 
4. On the first line again, select the Accounts Receivable account, then enter the amount of $200 under Amount. 
5. For the second line, add a customer profile if needed under Received From.
6. On the second line again, select the category where you want to post the $400 split. Add the amount under the Amount column.
7. Add a memo if needed.
8. Once done, hit Apply and accept. 

The Split transaction screen would look similar to this: 

After accepting, an unapplied payment of $200 will be created under the customer's profile. As for the $400 split, this will be posted to the account you selected.

So, for the finishing touches, let's close the invoice by linking it with the $200 split we made on the Banking page. Here are the steps: 

1. Open the $200 invoice from the list of customers. 
2. Click the Receive payment button.
3. Set the correct Payment date. 
4. Under Deposit to, select your bank account. 
5. Under Outstanding Transactions, check the invoice.
6. Under Credits, check the deposit transaction. 
7. Add other information such as a reference number or a memo. 
8. Once done, hit Save and close. 

If you'd like to see how the transactions would play out on your books, we can run some reports. If you need help doing this in the future, check out this article: Run reports in QuickBooks Online.

If you need help managing other downloaded bank transactions, let me know and I'll guide you through the steps. Would you like to raise some other concerns in other areas? Add the details to your reply, and I'll address them accordingly.