How do I split an ACH payment between multiple PAYEES? One bank transaction includes payment tome and payment to a contractor. Separate accounts and separate payees!

Hi there, geoffshive. 

I can help you split your payment between multiple payees. 

You can split your downloaded transaction in QuickBooks. Splitting this allows you to divide the payments to multiple payees. I'll show you how: 

1. Go to the Banking menu, then choose the appropriate bank account. 
2. Select the downloaded payment.
3. Click Split next to the Add button. 

Note that when you split a transaction, the amount on each line should match the total amount. 

I've got this to help you tracking, categorizing, and splitting invoice payments in QuickBooks: Download, match, and categorize your bank transactions in QuickBooks Online. 

I'll be right here to continue helping if you have any other concerns or follow-up questions. Stay safe and have a great rest of the weekend.

When I choose 'Split" next to the "Add" button, a new window pops up which will allow me to split a transaction between different categories, but there is no option to split between multiple payees. Any input?

Allow me to share a few information about splitting payment between multiple payees, todd25.

I know how beneficial it is to be able to split payment between multiple payees. Currently, splitting of payment is only available to a single payee. I'll take note of this to submit a request. You'll also want to submit feedback on your behalf. 

1. Click the Gear icon.
2. Select Feedback.
   
   

You can also read more product updates in our QuickBooks Blog. In addition, match your downloaded transactions to what you've entered in QuickBooks. Please read this article for your reference: Categorize And Match Online Bank Transactions in QuickBooks Online.

Feel free to let me know if you have any other concerns about splitting transactions. Don't forget, we're always right here to make sure that we get you covered. Have a nice day!

Still no solution? I used to do this before, now is not available.

This is a mess - Did an ACH out of my bank account 

and now I can not assign the amount to multiple payees?

WHAT A MESS 

This is still not resolved and is a huge issue - I pay multiple employees via ACH every month, there needs to be a way to split payees and not just categories. Any update on when this will be fixed? 

Joining the thread to help share insights about your transactions, @Alissa8.

As of the moment, there isn't an integrated way to split the payee while categorizing your bank transactions in QuickBooks. And we're also unable to provide a turnaround time as to when this feature will be added.

While the said option is not yet available, I'd recommend sharing your request directly with our product developers team. I'll show you how.

1. Go to the Gear icon.
2. Under PROFILE, select Feedback.
3. Enter a few words describing how splitting the payee name helps categorize your downloaded transactions.
4. Select Next.
5. Click Skip and send message.

I'm adding this article so you're able to track the status of your request and also the latest updates released by our developers: Customer Feedback in QuickBooks Online.

It'll always be my pleasure to help if you got questions other than splitting and categorizing your online transactions. Use the Reply option below to leave a comment for me to assist you. Take care and stay safe!

What a huge oversight from Quickbooks developers not to account for ACH batch mode. It's not a new practice in the financial industry. Any business issuing payment to multiple payees will normally use batch mode to avoid repetitive data entry at a bank's user interface. This feature is very much needed.

While the method described above does not solve the issue in question, this will:

• Go to the Banking menu, then choose the appropriate bank account. 
• Select the downloaded payment to cause it to drop down.
• On the action options in the drop down window, select Find Match.
• Choose the correct date range for when QB should look for transactions.

If  "Suggested Matches" is enabled, QB will attempt to add uncleared expense transactions that come up to the total of the single downloaded bank payment. You can always pick transactions manually.

Hope this helps, ConSol

While the method described above does not solve the issue in question, this will:

• Go to the Banking menu, then choose the appropriate bank account. 
• Select the downloaded payment to cause it to drop down.
• On the action options in the drop down window, select Find Match.
• Choose the correct date range for when QB should look for transactions.

If  "Suggested Matches" is enabled, QB will attempt to add uncleared expense transactions that come up to the total of the single downloaded bank payment. You can always pick transactions manually.

Hope this helps, ConSol

Ok I'm just now joining the convo because I was looking to resolve this issue myself. I found a work-around, and unfortunately, it's annoying to have to do this every time if you have lots of transactions like this. 

From my understanding (or at least in my case), I have a downloaded transaction from an online account. I can see where I can split the payment into multiple expenses, but I can only assign one payee for the entire expense. I need to have multiple payees to each split. 

So what I had to do was make a manual journal entry - this is the only place I have found that allows you to make split payments to different payees - you can assign "Name"s to each line of the journal entry. Make sure the credit side account is set to the account that is your online account.

Then, go back to where you can review your transactions from the account. If you have already confirmed that transaction, you have to go to the "categorized" section, and click undo, which will put it back into the "for review" section. Click on this transaction, and select the option up top that says "find match". This will then look into your journal entries and merge the two transactions - your manual journal entry with the downloaded one so that you aren't making a double entry. This makes it to where your transaction has two payees. Unfortunately, you need to have some basic understanding of accounting to not screw up a journal entry, so if you know how to make journal entries, you can do multiple payees. 

Hope this helps!

How do I start a manual journal entry to even begin to choose multiple payees? 

Welcome to this conversation, @Asher52. It's my pleasure to assist you in creating a journal entry. 

Here's how: 

1. Click the+ New button. 
2. Select Journal entry.
3. On the first line, select an account from the Account field, then enter a debit or credit transaction and enter the amount in the correct column.
4. On the next line, enter a debit or credit and enter the same amount in the opposite column.
5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other to make it balance, then click Save and close.

Here's an article with a quick video tutorial for your visual reference in creating a journal entry in QBO. 

To make sure your books are accurate, I'd recommend seeking accountant advice. 

Post some more of your concerns if you have any. We're always here to help. 

I also spent a little time with a QBO support member who was chatting and screen-shared with me to resolve this issue - they did not find a resolution to be able to assign a payee per split until I mentioned my solution that I posted above about making a journal entry and then matching it to the downloaded transaction. They agreed that this would be a solution - in addition, you can create multiple manual expenses as separate transactions that will total your downloaded transaction, and for each of those separate manual expenses, assign the appropriate payee. Then match those expenses to the original downloaded transaction so you don't have a double entry. This seemed more cumbersome than doing a journal entry, so I didn't try it with the support member who I was screensharing with.

The other way to do this is to use the "class" feature, but unfortunately this feature does not show up in QBO unless you are using the Plus or the Advanced versions of QBO. But in those versions, you would be able to split a transaction and select a class for each split, allowing you to separate out the transaction per class that you can generate reports for later. While a class is not necessarily the same as a payee, it allows you to generate a report. I am unaware of whether the Plus or Advanced versions open up the ability to also select multiple payees per split, but there's a possibility that it does if it is introducing Classes per split as well. 

Hope this helps!

I actually have found the expense version to be very easy to use. I can enter the expenses back to back according to my ACH report. I simply click find match and they pop right up as long as I set the expense to the correct date. It's very easy actually.

I found hope in the instructions offered below but I can't quite find how to split payees.  I have paid 1099 contractors via ACH directly through my bank for the last three months and need to get those transactions recorded so that I can get 1099s issued ASAP.I am using QuickBooks Online and I cannot find where I can split into multiple payees, just multiple categories. Please help!

Kim Edmunds

Thanks for following this thread, @kedmunds1. I understand you'll need to split payments into multiple payees. 

At the moment, this option is only available to a single payee. I'll take note of this to submit a request. 

You can also want to submit feedback directly from your account.Here's how:

1. Click the Gear icon.
2. Select Feedback.

As a workaround, you also want to enter this transaction using Journal Entry.

Here's how:

1. Go to the + New button.
2. Select Journal Entry, then fill out the fields to create your journal entry.
3. Click Save and new or Save and close.

You can check out this link for further details and instructions: Create a journal entry in QuickBooks Online

I'd recommend consulting an accountant to make sure your books are accurate.

Feel free to get back if you need more help. Take care! 

Adding to the convo here - I've been told by my accounting team that Journal Entries don't pull into 1099s, so beware of this work around for 2022 1099s if applicable. It's a definite mess. 

thanks for taking the time to explain this solution. It worked exactly as described and was just what I needed.

I followed the suggestion to create manual expenses for each transaction and then used "find a match" for the total.  It found the manually entered expenses! Hopefully this won't duplicate my expenses and should work for 1099s. 

When using the method of creating multiple manual expenses and matching to the downloaded transaction, do you then need to void the original expense line? 

Thanks for joining in on this thread, cddb.

I'd like to verify some details if you don't mind. When you say to void the original expense line, do you have these expenses added on a journal entry or other type of transactions? If you only have one downloaded transaction in the Banking section and you've match it to the expenses you've recorded in QuickBooks Online, then you're good to go.

The other way is to exclude the downloaded transaction, then manually clear the expenses in your register. This way, you're not getting any duplicates and you can easily reconcile the account later on.

To exclude, here's how:

1. Go to Transactions > Banking.
2. In the For review tab, put a check mark on the duplicate transactions.
3. Click the Exclude button.

Here's a sample screenshot for a visual reference:

After excluding these transactions, you can delete them in the Excluded section. To get an overview about the process, please check out this link: Exclude a bank transaction you downloaded into QuickBooks Online.

For clearing the expenses recoded in QuickBooks, you can follow these steps:

1. On the left panel, click Accounting > Chart of Accounts.
2. Find the bank where the transactions are posted and click the View register link.
3. Locate the transactions and under the Reconcile (indicated by a check mark) column, click on the blank field until you see the letter C. This means cleared while R means Reconciled.
4. Hit Save.

Here's a sample screenshot of what the page looks like:

When you're ready to reconcile the bank account, you can watch a video tutorial in this article: Reconcile an account in QuickBooks Online.

Please don't hesitate to leave a reply on this thread if you need more assistance regarding the steps or have additional questions. I'm here to help you out. Take care and stay safe.

Thank you for this suggestion. I would like some clarification. We have an ACH payment we need to split into multiple payees. I uploaded the amounts and payees using a CVS file to our Cash on Hand account (totaling $2,500). I select ACH payment for $2,500, click on FIND MATCH, I entered date range and nothing comes up. Can you please advise what I'm doing wrong?

I uploaded the transactions to Cash on Hand because the Bank Account with ACH payment is connected to our bank and transactions are downloaded automatically. This made me think that if I uploaded the information from CVS file to that account it could cause problems in our bank connection. Please help and share if you have any insights.

This is a question to ConSol12 suggestion posted ‎November 10, 2021 10:52 AM.