Split Bank Transaction

How to Split Bank/ Credit Card Transactions in Docyt to Required Transaction Types and thus Create Journal Entries via Docyt

Use 'Split Transaction' to break a bank/CC transaction into multiple transactions to create journal entries that affect balance sheet a/c like Loan Proceeds, Equity Invest, Other Receivables, Equity Withdrawal, Asset Withdrawal, & Liability Payments.

Splitting bank or credit card account transactions involves categorizing or allocating various parts of a transaction to different transaction types. This process breaks down a single transaction into multiple sub-transactions, each representing a distinct transaction type.

The steps to split transactions are as follows.

    1. Navigate to the 'Banking & Reconciliation' section, proceed to 'Banking Accounts', and select 'Transactions'.

    2. In the 'Transactions' section, you can view all transactions related to your business. To split a transaction, locate the transaction of interest and click on the three-dot menu at the end of it. This will bring up a menu list for you to explore, where you can then select the 'Split Transaction' option.

    3. When you click the 'Split Transaction' option, a dialogue box will appear. Here, you can specify the amount and description for each split you need. Input the necessary details and click the 'Split Transaction' button to create the splits.

    4. Once you click the 'Split Transaction' button, all the splits will be generated as needed. You will also notice a green symbol indicating split transactions in the row.

    5. To categorize these split transactions, click on the three dots at the end of the transaction and select 'Transaction Details'.
    6. Choose the transaction type that best fits and then click on 'Categorize Transaction'.
    7. You will receive a notification indicating that the transaction was successfully categorized.
    8. The 'Transaction Type' will also be updated from 'Uncategorized' to the chosen category and synced to QBO.
    9. Utilize the 'Split Transaction' menu when you need to break down a bank/ credit card transaction into multiple transactions in order to create journal entries for transaction types that affect balance sheet accounts like:
        • Loan Proceeds
        • Equity Investment
        • Other Receivables
        • Equity Withdrawal
        • Asset Withdrawal
        • Liability Payments