Split a bank transaction between multiple categories on mobile
This article explains how to use the FreeAgent mobile app to split bank transactions between multiple categories.
For example, a single purchase may include box files that need to be explained to ‘Stationery’ and a book of stamps that needs to be explained to ‘Postage’.
If you're registered for VAT, it’s important to allocate the relevant amount to each category and apply the appropriate VAT rates if they differ between the categories. If both the categories you'll be using have VAT on them, then you need to apportion the VAT between them. If only one category has VAT then all the VAT on the receipt would go into that category.
Please note:
- You can only split bank transactions that are currently unexplained. If the bank transaction has already been explained or marked for approval, you'll need to remove the explanation before following the steps below.
- It’s not possible to split bank transactions that have been entered manually or are in a locked accounting period.
- You’ll need level 6 access or above to your FreeAgent account to follow the steps below.
- Any changes you make using the FreeAgent mobile app will be reflected in the desktop version of FreeAgent.
1. Navigate to the relevant bank transaction
Tap the ‘Banking’ icon.
Next, choose the relevant bank account from the list.
Tap the transaction that you would like to explain to open up the explanation options.
2. Remove the explanation
If the bank transaction has already been explained or marked for approval, you'll need to remove the explanation first.
To do this, select ‘Remove’ in the top-right.
Select ‘Remove’ from the menu to complete the process.
3. Split the bank transaction
Next, you’ll need to split the bank transaction into the relevant amounts for each category.
To do this, select the relevant type for the first transaction in the ‘Explained as’ field, choose the relevant category in the ‘Category’ field and enter the amount to allocate to the first category in the ‘Amount’ field.
Select ‘Explain transaction’ or ‘Save’ to explain the amount to the first category.
4. Explain the remaining balance
Next, you’ll need to explain and categorise the remaining balance of the bank transaction. In the above example, we’ve explained £80 of the original £100, so there is £20 remaining.
Select the second transaction for the remaining amount.
Select the relevant type for the second transaction in the ‘Explained as’ field, choose the relevant category in the ‘Category’ field and enter the amount to allocate to the second category in the ‘Amount’ field.
Select ‘Explain transaction’ or ‘Save’ to explain the remaining amount to the second category.
The bank transaction will then be split between the selected categories.