How to reconcile a bank transaction that is both income and expenditure

If a bank transaction includes both income and expenditure (other than bank fees) for the total amount, you won't be able to reconcile it as one transaction.

Examples include:

• if you have rent income from and agency and a supplier refund from the same agency
• if you have net event income which actually represents gross income less money costs of the event

To reconcile the income and expenditure separately, you will need to delete the bank transaction and manually upload 2 transactions which you can reconcile separately as income and expenditure.

These are the steps you should follow to split a bank transaction:

1. Take note of the bank balance at the end of the month and the transaction amount

• note down the end of month bank balance to make sure
• note down the total amount of transaction(s) you want to split/replace

2. Delete the bank statement transaction

Within the View Statement screen, click the 'delete' button to the right of the bank statement transaction.

3. Manually upload two transactions in its place

Manually upload two transactions in place of the deleted transaction (both dated the same date as the deleted transaction).

• Paid In Transaction for the income amount
• Paid Out Transaction for expenditure amount

4. Reconcile Transactions

a. Reconcile the paid-out transaction as expenditure e.g. invoice payment, supplier refund

b. Reconcile the paid-in transaction as income e.g. other income, donation

To better understand the Bank Reconciliation module, please view the module overview video here.