Overview
This procedure describes how to create the effect of splitting a payment after it has already been recorded. The payment is not physically divided; instead, offsetting entries are posted so the balance is reallocated across multiple categories.
When to use this method
Use this approach when a payment was originally recorded to one category, but part of that amount should be applied to another category as well.
Example scenario
A payment has been recorded to senior dues for a household. The desired outcome is to apply part of the payment to senior dues and part to another category, such as a security fee.
Procedure
- Navigate to the payments area where items with no charges are handled.
- Enter a description for the adjustment.
- Select the category where the original payment was posted.
- Record the adjustment amount.
- Add the offsetting line for the category that should receive the reallocated funds.
- Leave the source of funds section blank if the entries net to zero.
- Save the transaction.
Result
After saving, the statement will reflect entries for the affected categories. The practical effect is that part of the payment is applied to senior dues and part is applied to the security fee, even though the original payment was not directly split.
Alternative approach
Another way to handle this is to reverse the original payment by bouncing it, which creates a reversal and sends the corresponding entries to QuickBooks. After that, the payment can be reposted correctly as though it had not been entered originally.
Recommendation
The offset-entry approach is generally more transparent because it clearly shows how the funds were reallocated. However, either method may be used depending on workflow preference.