Why this matters
Splitting category transactions allows you to break down complex transactions into multiple categories for accurate financial reporting. This is essential for transactions that contain both business and personal expenses, multiple business purposes, or different tax treatments within a single payment.
Prerequisites
- You must be logged in as an Owner or Administrator
- Have transactions imported and available for categorization
- Understand the different transaction types and groups available
- Know the breakdown of amounts for each category
Steps
1. Navigate to Transaction Categorization
Go to Accounts → Select your account → Click on the transaction you want to split
2. Review the Transaction
Examine the transaction details:
- Date - Transaction date
- Description - Transaction description from bank
- Amount - Total transaction value
- Balance - Account balance after this transaction
3. Add First Category
Set up the first category for the split:
Essential Fields:
- Transaction Type - Select the type (Income, Expense, Transfer, etc.)
- Transaction Group - Choose the specific group (e.g., COMPANY_EXP_OFFICE)
- Category Value - Enter the amount for this category
GST Treatment:
- GST Value - Enter the GST amount for this portion
- Quick Buttons - Use 10% or GST Free buttons for common rates
- GST Treatment - Automatically set based on your selection
4. Configure Source and Destination
Set up where the money came from or went to for this category:
Source Information:
- Source Type - Trust, Individual, Business, Government, Super Fund, or Asset
- Source Contact/Asset - Select the specific entity or asset
- Quantity - Enter quantity if applicable (for asset transactions)
Destination Information:
- Destination Type - Where this portion of the money is going
- Destination Contact/Asset - Select the specific recipient
5. Add Additional Categories
Create additional categories for the remaining portions:
- Click Add Category button
- Fill in the same fields for the second category
- Enter the remaining amount or specific portion
- Set appropriate GST treatment for this portion
- Configure source and destination as needed
6. Set Assignment Details
Configure assignment information for each category:
Assignment Type:
- Asset - Transaction related to a specific asset
- Related Parties - Transaction with related individuals
- Capital Project - Transaction for capital expenditure
Asset Assignment:
- Select the specific asset if applicable
- Used for investment transactions, asset sales
- Helps track asset performance and costs
7. Add Comments and Notes
Include additional information for each category:
- Comment - Add notes about this portion of the transaction
- Reference - Add invoice numbers or reference codes
- Tags - Add custom tags for filtering and reporting
8. Verify Amount Totals
Ensure all categories add up correctly:
- Check that the Remaining Amount shows $0.00
- Verify that all category values sum to the total transaction amount
- Adjust individual category amounts if needed
- Ensure GST amounts are calculated correctly for each portion
9. Use AI Suggestions (Optional)
Get intelligent categorization suggestions for each category:
- Click the lightbulb icon for each category
- System analyzes transaction description and amount
- Provides suggested intent, type, and group
- Review and accept or modify suggestions
10. Save Split Categories
Finalize the split categorization:
- Review all entered information for each category
- Confirm that remaining amount is $0.00
- Click Save Categories to confirm
- Transaction will be marked as categorized with multiple categories
Expected Results
- Transaction is split into multiple categories with different purposes
- Each category has proper GST treatment and source/destination information
- All categories sum to the total transaction amount
- Transaction appears in relevant reports for each category
- Remaining amount shows $0.00 (fully categorized)
Example
Splitting a Mixed Business/Personal Transaction:
- Transaction: Office Supplies & Personal Items - $330.00
- Category 1:
- - Type: Expense
- - Group: COMPANY_EXP_OFFICE
- - Value: $220.00
- - GST: $20.00 (10%)
- - Comment: Business office supplies
- Category 2:
- - Type: Expense
- - Group: IND_EXP_PERSONAL
- - Value: $110.00
- - GST: $10.00 (10%)
- - Comment: Personal items
Troubleshooting
- Remaining amount not zero → Check that all category values sum to the transaction amount
- Can't add more categories → Ensure you're clicking "Add Category" button correctly
- GST calculations wrong → Use the quick buttons or manually enter correct GST amounts
- Categories not saving → Verify all required fields are completed for each category
- Wrong category assignments → Review and correct the transaction type and group for each category
What Can Go Wrong
- Incorrect split amounts → May result in wrong financial reporting and tax calculations
- Wrong GST treatment → Could affect BAS reporting and tax compliance
- Missing categories → Some portions may not be properly categorized
- Incorrect source/destination → May affect relationship tracking and compliance
- Over-categorization → Categories may exceed the total transaction amount
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