How do I split a bank transaction?
If there is a single bank transaction on the left-hand table of your bank reconciliation screen, but you need to record it as multiple income or expenditure types, you can split the transaction to then reconcile it.
Examples include:
- If you have an income transaction, part of which is a named donation and the other part is an expense repayment.
- If you have an expenditure transaction, part of which is an invoice payment and the other part is an opening accounts payable reversal.
Important: if your income transaction includes bank or processor fees, or a donation is split across multiple categories, these can be reconciled using the Mixed Income functionality, and you do not need to follow the steps below.
These are the steps you should follow to split a bank transaction:
1. Click edit on the bank statement transaction
Within the View Statement screen, click the 'pencil' button to the right of the bank statement transaction. In this example there is an expenditure transaction of £1040
2. Split the transaction:
For income transactions you will need to split the transaction into 2 or more paid-in amounts.
For expenditure transactions you will need to split the transaction into 2 or more paid-out amounts.
In this example of splitting the £1040 expenditure transaction, we have split it as:
- Paid Out Transaction for the first expenditure amount (£1030)
- Paid Out Transaction for the remaining expenditure amount (£10)
Reconcile Transactions
On the match transactions screen, reconcile each of the transactions as needed.
Top tip: you can use the same method above to split a bank transaction that you need to reconcile as both income and expenditure. Learn more here.
To better understand the Bank Reconciliation module, please view the module overview video here.