Are you trying to a split transaction? Regardless of what type of business you operate, you probably won’t encounter many instances in which you’ll need to split a transaction. Most transactions are connected to a single account. As a result, they don’t require splitting. When the need arises, though, you can split a transaction using Quickbooks.
What Is a Split Transaction?
A split transaction is exactly what it sounds like: a transaction that’s split among two or more accounts. Each sale that your business generates is a transaction. When your business sells a product or service, it will create a transaction. A split transaction is essentially a single sale that has multiple customers. Each of the customers pays a partial amount of the total transaction.
When to Use Split Transactions
You should use split transactions whenever multiple customers split the purchase total of a transaction. All transactions have at least one customer. If multiple customers pay for the same transaction, they are sharing the cost of that transaction. Assuming those customers have their own accounts, you can split the transaction. Doing so will create cleaner records that allow you to see exactly how much each account has spent on your business’s products or services.
Steps to Split a Transaction
When adding a transaction to your business’s register, you won’t have the option of assigning multiple accounts to it. Quickbooks only allows a single account for any given transaction when added to the register. Fortunately, you can still create a split transaction; you just need to assign the additional accounts using an alternative method.
In Quickbooks Online, you can assign additional accounts to a transaction by accessing your Chart of Accounts. From the home screen, click the “Accounting” menu and choose “Chart of Accounts.” After locating the primary account associated with the transaction, click the “View register” link below the “Action” column. You can then search for the transaction that you’d like to split.
Once you’ve found the transaction, click the “Edit” link. You should now see an option to add other accounts to the same transaction. You’ll also need to enter the amount paid by each account. Keep in mind that the total amount paid by all accounts must equal the total amount of the transactions.
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