What Does Split Mean In QuickBooks: Create, Edit, & View

When you manage business finances, it’s common to encounter transactions that cover multiple expenses or income sources at once. A single payment might include all in one transaction. In QuickBooks, this situation is handled using split transactions, which allow you to divide a payment or deposit into different categories or accounts. This makes it easier to track your money, maintain accurate records, and generate clear financial reports. In this guide, we’ll explain how split transaction QuickBooks work, why they’re useful, and how to create, edit, view, and manage them with ease.

What Does “Split” Mean in QuickBooks?

In QuickBooks, a “Split” means a transaction is divided into different parts instead of being put into just one category. It is used when one payment or deposit includes multiple expenses. For example, if you spend $100, you can record $60 as Office Supplies and $40 as Travel Expenses.

When you see “-SPLIT-” in your reports or register, it means the transaction has been divided into different categories. This helps you track your money more clearly and keep your records accurate, including taxes and different types of expenses.

Why Are Split Transactions Used in QuickBooks?

Split transactions are used in QuickBooks when a single payment or deposit includes multiple types of expenses or income. Here are some key reasons to split transaction QuickBooks:

• Users can divide one payment into multiple categories.
• Separate business and personal expenses from a single transaction.
• Break down payroll payments into salaries, taxes, and other costs.
• Allocate expenses to specific jobs or projects for better tracking.
• Record fees and taxes separately for clear financial records.
• Manage one deposit that includes multiple invoices or payments.

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Types of Split Transactions in QuickBooks

Split transaction QuickBooks can be used in different ways depending on the type of transaction. Here are the most common types:

Expense Splits

Used when one payment includes multiple expenses. You can divide a single purchase into different categories like office supplies, maintenance, or meals. It also helps separate business and personal expenses or assign costs to specific projects or customers.

Income and Deposit Splits

These are used when you receive money from different sources in one deposit. You can split accounting entry to record income from multiple customers or services. It also helps you separate bank fees or charges from the total amount to keep records accurate.

Bank Feed Splits

When transactions are downloaded from your bank, you can split them into different categories. You can also set rules to automatically divide recurring transactions, such as splitting rent or utility bills between business and personal use.

Advanced Splits

It includes more detailed splits like break down payroll into salaries, taxes, and benefits, or dividing transactions based on different business classes or locations for better reporting.

How to Create a Split Transaction in QuickBooks

Creating a split transaction in QuickBooks is easy and lets you divide one transaction into different categories.

Here’s how you can do it in QuickBooks Online and Desktop:

In QuickBooks Online

You can split transaction QuickBooks from the Bank Feed or Account History.

From Bank Feed [New Transactions]

• Go to Transactions>>Bank Transactions.
• Select the transaction you want to split.
• Move next and click Split.
• Add different categories and enter amounts.
• Make sure the total matches (Difference = 0).
• Click Apply or Save and Add.

From Account History [Existing Transactions]

• Go to Settings >> Chart of Accounts.
• Select the account and open Account History.
• Find and click the transaction.
• Now, click on the Edit button.
• Add multiple categories and amounts.
• At last, click on the Save button.

In QuickBooks Desktop

You can split transactions from the Register or while creating a Bill/Check.

From Account Register

• Open Chart of Accounts (Ctrl + A).
• Double-click the account.
• Select a transaction or create a new one.
• Click Splits.
• Enter different accounts and amounts.
• Ensure total matches the transaction.
• Click Record.

From Bill or Check Window

• Go to Vendors > Enter Bills or Banking > Write Checks.
• Fill in basic details (vendor, date, amount).
• In the Expenses/Items tab, add multiple lines.
• Enter different accounts and amounts.
• Make sure the total equals the main amount.
• Click Save & Close.

You may also read: Find & Erase Audit Trail in QuickBooks

How to Edit or Delete Split Transactions in QuickBooks

• Open the transaction from Bank Transactions, Account Register, or Transactions menu.
• Click the Split icon or button to view the breakdown.
• Edit categories, accounts, or amounts and ensure the total matches the original; then click Save or Apply.
• To delete a specific line, select it and use the trash icon or Ctrl + Delete.
• To delete the entire transaction, select More>> Delete or Delete Transaction and confirm.

How to View Split Transaction Details

To keep your records accurate, it’s important to see the details of a split transaction and how the amounts are divided across different accounts or categories in QuickBooks.

• QuickBooks Online: Open the transaction in Bank Transactions or run Transaction List with Splits/General Ledger reports and enable Split.
• QuickBooks Desktop: Use Custom Transaction Detail or Transaction List by Customer reports with the Split column, or press Ctrl + Y on a transaction to see the Transaction Journal.

Common Mistakes to Avoid When You Manage Split Transactions

When managing split transaction QuickBooks, it’s important to avoid common mistakes that can affect your accounts.

• Always make sure the total of all split lines equals the original transaction amount.
• Assign each amount to the correct category or account to keep records accurate.
• Be careful when deleting a split line or the entire transaction to avoid errors.
• Along with that, do not ignore small amounts or rounding differences in the split.
• Also, you should review all split details carefully before saving to ensure accuracy.

Best Practices for Managing Split Transactions

Following these best practices helps maintain clean records and prevent errors:

• Always double-check that the total of all split lines matches the original transaction amount.
• Assign each line to the correct category or account to maintain proper bookkeeping.
• Also, use clear memos or descriptions for each split line to track the purpose of the expense or income.
• Regularly review split transactions using reports like Transaction List with Splits or the Transaction Journal.
• Back up your data or reconcile accounts frequently to catch and correct errors early.

Conclusion

Split transaction QuickBooks lets you break one payment or deposit into smaller, easy-to-manage parts. Using them properly keeps your records accurate and makes your final report simple. Also, it helps you track expenses or income in different categories. If you follow best practices, avoid common mistakes, and check your splits regularly, you can keep your accounts organized and save time on bookkeeping.

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