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How To Split Bank Transactions

While running your business you may encounter the need to split transactions. The following article outlines the related steps.

A common need you may encounter when using various payment platforms is accounting for associated fees.

  • A popular example would be a business that uses Paypal and needs to account for the accompanying  fees. If accompanying fees are not accounted for, the deposit you receive will be less than the amount you were billing the customer for. In order to avoid this, you will need to account for the transactional fees which can be done through split transactions.

In order to begin splitting deposits in your FINSYNC profile, follow the steps outlined below: 

In this example, you have charged your customer $205.00 and PayPal has kept $5.00 for their fee and deposited $200.00 to your account.

1. Click on the Banking tab in the top menu.

2.  Select the bank account linked to the transactions you wish to split.  If you only have one bank account synced, this account will be selected by default.

Note: you will not be able to use split if the transaction has a designated Customer or Vendor, or if it is matched to an Invoice. The Customer and Vendor can be removed by expanding the row and making appropriate edits. Once the split has been completed, these attributes can be redesignated to the child transactions (not the original). To remove an Invoice/Bill click on the red X. Invoices and Bills can be re-matched after the split is completed. 

3.  Click on the ellipses on the far right to see the available options.

4.  Choose Split.  

5. Type how many sub-transactions you want to split the parent transaction into and click Apply to create new rows. In this example, we want to split the original transaction into 2 sub transactions.

6a.  Adjust one row to the amount you charged your customer.  For this example, that should be $205.00

Note: This number should be positive.  You'll get to reconcile this amount to an invoice if desired at the end.

6b. Adjust the other row to the amount that PayPal kept. 

Note: PayPal's fee should be a negative, so input "-5.00" in the second row.

7.  Use the dropdown arrow to open the general ledger. Choose Expense and then choose PayPal Fees or Bank Fees or the GL account where you want to keep track of PayPal fees.

8.  Click Confirm Split and you'll be taken back to the bank register page.

Optional: You now have the two split transactions visible on the banking tab. Click the row of the full deposit to see the expanded view. You can also add attributes and/or apply them to receivables or payables.