What Does Split Mean in QuickBooks?

You may have wondered what does split means in QuickBooks. The term “split” is used when there are several General Ledger (GL) accounts linked to a transaction. A transaction that affects multiple accounts is known as a split transaction. When a cheque transaction is used for Rent expense account and taxes, it’s marked as “Split” in your bank account. This transaction requires debiting Rent expense and tax liability, and a crediting Bank account.

How to Perform Split Transactions in QuickBooks?

Split transactions in QuickBooks allocate amounts or percentages to different accounts in one transaction. It’s useful for tracking expenses across categories or projects.

• Find the transaction you want to split in QuickBooks.
• To access the Split Transaction Window, click on the transaction. 
• Find and select the “Split” or “Split Transaction” option. This will open the split transaction window.
• In the split transaction window, choose split type: percentage or amount. Select the right option.
• Choose business or personal for each split of amounts or percentages. Assign the split to the correct business category. Enter the split amount or percentage.
• Click “Add line” to allocate amounts to more than two accounts. Repeat the steps above for each additional split. (optional steps)
• To exclude splits, select the “Exclude” checkbox. (optional steps)
• Click “Save” to store the split transaction after allocating amounts or percentages.

How to Split Transactions in QuickBooks Online and Desktop?

QuickBooks gives users the flexibility to edit, delete, and enter split transactions. The process of splitting transactions is similar for both QuickBooks Online and QuickBooks Desktop.

Split Transactions in QuickBooks Online

• Click on “Banking”.
• Pick the appropriate bank account.
• Find the transaction to split.
• Select “Split” beside the transaction.
• Choose the type of split, either by percentage or amount.
• Select the appropriate category for each split.
• Enter the amount or percentage for each split.
• Add additional splits if necessary.
• Save the split transaction.

Split Transactions in QuickBooks Desktop

• Navigate to the “Transactions” menu.
• Look for the transaction you want to split.
• Choose the transaction, then hit “Split”.
• Select split type as percentage or amount.
• Set accounts and amounts for each split.
• Add more splits if necessary.
• Save the split.

How to Edit or Delete Split Transactions in QuickBooks?

To edit or delete split transactions in QuickBooks, access the transaction and make changes in the split transaction window. Here is a step-by-step guide on how to edit or delete split transactions:

• Locate the transaction in QuickBooks that needs editing or deleting.
• View transaction details by clicking on it. 
• Click on the “Split” or “Split Transaction” link/button. This will open the split transaction window.
• Edit transaction details in the split window, including account allocations. Adjust the split transaction as required.
• Click “Save” to update the split transaction.
• To delete a split transaction, click the “Delete” button within the split transaction window. 
• Confirm the deletion when prompted.

How to Split Bank Transactions in QuickBooks into Multiple Projects or Locations?

QuickBooks lets you divide bank transactions into multiple projects or locations. Here is how you can split bank transactions into multiple projects or locations in QuickBooks:

1. Split Bank Transactions into Multiple Projects:

• Navigate to the Banking menu within QuickBooks.
• Choose the bank account to which the transaction is associated.
• Switch to the “For Review” tab to find the transaction you want to split. Click on it to expand its view.
• Look for the “Split” button next to the “Add” option and click on it.
• Select the appropriate vendor from the “Payee” drop-down menu. Then, choose the projects you want to split the transaction into from the “Customer” drop-down menu.
• If the expenses are billable to the customer, check the “Billable” checkbox.
• Finally, click on the “Save and Add” button to save the split transaction.

2. Split Bank Transactions into Multiple Locations

• Go to the Chart of Accounts within QuickBooks.
• Locate the account associated with the transaction.
• Under the Action column, select “View Register” and “Account History” for the bank account.
• Right-click on the transaction you want to split 
• Select “Edit.” This will open the entry screen for the transaction.
• Add other accounts to split the transaction on the entry screen. 
• Make sure all account totals match the transaction amount.
• Click “Save” to save the split transaction after adding all necessary accounts.

How to Split Lines in QuickBooks Transactions to Accounts Receivable?

To allocate amounts to different Accounts Receivable, QuickBooks transactions may require you to split lines in certain cases. Here’s how to split lines in QuickBooks transactions to Accounts Receivable:

• Select Chart of Accounts from the Lists menu.
• Find and choose the account for the transaction.
• View transaction history by selecting Account History from the Action column.
• Choose the transaction to edit and click Edit.
• Specify the amounts for each new account added.
• To save the transaction, click on the Save button.

Understanding what split means in QuickBooks is essential for accurate financial tracking and reporting. By splitting transactions, businesses can allocate funds to multiple accounts, enhance expense tracking, and generate detailed financial reports.

Frequently Asked Questions (FAQs)