Splitting expense costs between two companies

book your payments to the travel expense account you would normally use

when you get his payment, deposit it an use that same travel expense account as the source (from) account for the deposit

Thank you, that has worked out for me in respect of the account and bank showing correct. The only remaining question is how I account for his half of the VAT in the account without showing it as VAT on sales (distorting my income for VAT purposes) to make the figure correct. 

I do not wish for it to appear that I should be paying VAT as a sale.

Thank you

Luckily I am in the US and do not have to mess with VAT, sorry I can not help there

Thank you!
This is what i feared we would have to do. Currently i am just under the threshold for VAT but if I am correct in thinking, by creating an invoice to return half payment to my company it would add to my income and therefore I will most definitely have to register for Vat (when in fact it would be repayment of an expense)??

We keep trying the request for split invoice but with airbnb the vat is on the service fee which is a receipt downloaded from them direct and they have already advised they cannot split an invoice.

Regards
Sheldon

I wish I didn't have to either. Thank you

Can anyone please explain class coding? I work for 2 companies both in QuickBooks together, but I need to split my invoices and expenses by putting PRE or TRI on invoices and checks which I have done but when a report is run nothing shows up for the newer company. What am I doing wrong?

Hello Danielle125,

Welcome to the QuickBooks Community! I will be delighted to explain class coding to you.  Class tracking provides you with a customizable way to track specific expenses, categorize shared expenses across multiple accounts, and handle the accounting for one-off and occasional costs that aren’t necessarily associated with a particular account type. For example, if you had a restaurant with three locations, you could create an Uptown, a Midtown, and a Downtown class for tracking account balances by location. At the end of an accounting period, the restaurant could create separate reports for each site.

These reports can then be broken down into seeing sales performance, business spending, and profitability by class. There are even options to customize some reports (like expenses by vendor summary) to group info by class. Use this article as it is an excellent resource for running reports by class.

First,  I want to ensure that you have set up your classes accurately. I am sharing this link that shows how to get started starting with class tracking with QuickBooks Online. Please let me know below if your class tracking is set up correctly, and I will be around to assist further. Take care for now!