Splitting a Transaction Across Categories

Overview

Splitting a transaction lets you divide a single expense or income entry across multiple categories, so each part is assigned accurately based on what it was really for.

This is especially useful when:

• A single purchase includes both business and personal items

• You're categorizing a bulk charge like a grocery or supply run

• You need to break down a large transaction for budgeting or tax reporting

🚨 Why It Matters for Business Owners

Properly splitting transactions isn’t just about tidiness — it’s essential for:

• Tax compliance: Avoid overstating deductions or missing eligible write-offs

• Accurate financial reports: Know what your business actually spends

• Budget visibility: Prevent distorted monthly or project-level budgets

• Client and project tracking: See where your money is really going

🔍 Common Scenarios

🛠 How to Split a Transaction Across Multiple Categories

Split transactions in QBP when you need to assign different portions of a single charge to separate categories, tags, or budgets. This is useful for organizing complex purchases (e.g., groceries and office supplies on one receipt) or separating personal and business expenses.

✨ Step-by-Step Instructions

1. Open Your Transactions List
   Hover over the left-hand navigation panel and select Transactions.

2. Find the Transaction to Split
   Locate the transaction you want to edit. Hover over it and click the three-dot menu (⋯) at the end of the row.

3. Edit the Transaction
   Select Edit transaction from the dropdown.

4. Open the Split Window
   Click Split. This opens the Split Transaction window.

5. Add Split Lines
   Click + Add Split to create as many lines as needed. Each line represents a different portion of the overall transaction.

6. (Optional) Divide Evenly
   If you want to divide the transaction amount evenly, click the three-dot menu in the top-right of the Split window, then select Divide among Splits.

7. Enter Categories and Amounts
   For each line:

   • Select a Category (e.g., Office Supplies, Groceries)

   • Optionally add a Tag

   • Enter the Amount for that portion

   ➕ QBP will automatically track how much of the transaction is Left to Split, shown in the top-right corner.

8. Save and Apply Changes

   • Click Save Splits when you’re done dividing the transaction.

   • Then click Update to save the full transaction edit.

✅ Tip: For best results, use clear memo notes and tags if the splits relate to reimbursements, business use, or budget planning. This will make reporting and audits easier.

Example: Office Supply & Snacks

Transaction total: $85

• $60 → Office Supplies (Category: Office Expenses)

• $25 → Snacks for Team Meeting (Category: Meals & Entertainment)

Result: Your reports will now reflect the true nature of each part of the expense, making it easier to budget and prepare taxes later.

✅ Best Practices for Transaction Splits

🚫 Limitations

• You cannot split one transaction between income and expense categories. If a transaction includes both, enter them as two separate transactions.

• Most systems don't allow splitting across different accounts — splits must stay within the original account the transaction was recorded in.

📈 Why It Matters