Hello Good afternoon. how to encode the split payment in one invoice from our Supplier in QuickBooks?. Ex. Net is paid by card and the VAT was paid as Cash.

Hi there. I'll share some information on how you can split the invoice payment in QuickBooks Online (QBO).

In QBO, the option to split payment for a supplier's invoice is unavailable. As a workaround, you can create an expense transaction for the VAT paid by cash and link it to the Accounts Payable account. Then, use the Pay Bills option to pay the net by card (with no VAT). Let me guide you on how.

To start, let's create a bill transaction (if you haven't created one) for the total amount. Here's how:

1. Select the +New button and click Bill.
2. Next, enter the details of the bill from your supplier.
3. Once done, select Save and close.

After that, create an Expense transaction for the paid VAT by cash and link it to the Accounts Payable account. Refer to these steps:

1. Click the +New menu and select Expense.
2. Next, go to the Category details section and choose Accounts Payable under the Category column.
3. Enter the amount paid for VAT in the amount field.
4. Then, fill in the other details similar to the bill you create.
5. Once done, select Save and close.

When finished, we can now pay the remaining amount (for net) using the Pay bills option. Follow the instructions below:

1. Go to the +New menu and choose Pay bills.
2. Enter the name of the card in the Payment account field.
3. Select the name of the supplier your need to pay.
4. From there, you'll see the VAT amount from the expense you created earlier in the Credit column.
5. To pay the remaining amount (for net), just enter the amount in the Payment column.
6. Click Save when done.

I also recommend reaching out to your accountant for guidance in performing the process above. This is to ensure you'll able to account for your transactions correctly and prevent messing up your books. If you're not affiliated with one, you can use our Find an Accountant tool to look for one near your area.

Additionally, if you want to split a downloaded transaction, you can use the Split option to split them. For detailed steps, check out the Split transactions between multiple accounts section of this article: Categorise and match online bank transactions in QuickBooks Online.

I'll include this helpful resource that you can use as a guide in case you need to create recurring bill transactions for your suppliers: Create recurring transactions in QuickBooks Online.

Please add a reply below if you have other concerns about managing your payment transactions. I'm just around the corner to help.