Split transactions - mix income and expense

kraney

The ability to split categories doesn't quite do what I need it to. For example, my bank account may show an $18.71 deposit - which is actually $19.99 of income, but with a $1.28 fee already subtracted. I need to make that a split with one income line item and one expense line item.

JulianP

Hey @kraney !

It sounds like you are looking to account for transaction fees when splitting your transactions. We have a great Help Center article on this. Feel free to check it out here: How to account for transaction fees.

By using this method, you will record a negative item line when splitting your transaction so fees are accounted for. I hope this helps!

vronp

Will this work in the following scenario? Rental income where let's say I receive $1500 per month in rent but a $50 fee is deducted for "Monthly Rental Management"? I tried to do this today but couldn't find my expense category for the rental management fee when I attempted to split the deposit transaction.

Just tried again and the "normal" expense accounts are just not available in the "drop down".

I'm trying to make Wave transactions match the bank transaction amounts. The rental management company deposits the net amount of $1450. What I have been doing in Wave so far is to enter a $1500 deposit and a $50 expense. This accurately categorizes my income source and expenses, BUT these transactions do not match up with the bank statements.

So, I think a split transaction is the correct way to go but I'm just not able to select a "normal" expense account in the split.

AlexL

Hi @vronp , I think what you're looking for is the following solution.
In your chart of accounts, set up a liability account called "Monthly Rental Management" or something similar.
When a customer pays you ($1500 for example), you will add an expense transaction in this liability account for the amount owed ($50 for example). Categorize the transaction as "Refund for Income," and select the income account that the original $1500 was deposited into which creates a balance in your liability account.
When you're ready to actually pay that amount off, you can categorize the payment/expense transaction as a transfer to the account (Monthly Rental Management) to pay off the balance. To create a transfer, check out our handy Help Center article.