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PlasticMoonRain
October 27, 2023
Question

Breaking down credit card payments into expense sub-categories

  • October 27, 2023
  • 2 replies
  • 0 views

My QBO automatically imports my business bank account transactions, including my credit cards.

I would like to break down each credit card transaction into sub-expense categories, as my accountant would like to know what expenses I'm charging to each month.

For example, one month, my Visa bill may be $4,000 and that's how it is recorded as a Credit Card Payment. However, I would like to manually break that transaction down into sub-categories, so I can show I spent $1,0000 on office supplies that particular month, or $500 on software that month, etc.

How can I accomplish this? Many thanks!!


2 replies

S
ShyMae
October 27, 2023

Thanks for reaching out in the Community, @PlasticMoonRain.

 

Once you've connected your bank account to QuickBooks Online (QBO), all transactions will be imported automatically and can be found in the For Review tab.

 

You can manually sub-categorize your expense transactions. Let me guide you how to do it. 

 

  1. Go to Banking.
  2. From the For Review tab, click the expense transaction you want to sub-categorize. 
  3. Scroll down, then select Split.
  4. From the Split transaction tab, fill out the necessary field.
  5. Click Apply and accept. 

 

Once done, the expense transaction you've split will automatically be categorized. If your accountant wishes to see the sub-categorized expenses, you can make use of the Transaction List with Splits report. 

 

Here's how: 
 

  1. Go to Reports. 
  2. From the Find report by name bar, type Transaction List with Splits and click it. 
  3. Click Customize, then hit Filter.
  4. From the Transaction Type dropdown, tick Credit Card Expense.
  5. Click Run report. 

 

If your bank statement and the transactions entered in QBO match, you can reconcile your account. To learn more about this, check out this article: Reconcile an account in QBO. 

 

Feel free to reply below if you need further assistance categorizing your transaction in QBO. I'll be here to assist you. Have a good one. 

P
PlasticMoonRainAuthor
October 27, 2023

Hi.

Thanks for replying. Things are not exactly showing up the way you are describing them. Probably because all of the imports have been successfully done already and a Rule has been set up for each card card so it is categorized properly.

So there are zero (0) transactions listed under "For Review" because nothing is being considered for review.

I did find the credit card transactions under "Categorized."

When I clicked on the first credit card transaction I would like to break down, there is no option for Split.

Do I need to change the Rules for each credit card or perhaps remove them so they can go back to "For Review" and then split up manually?

Thanks. Drew





S
Shania_C
October 27, 2023

Hi there, @PlasticMoonRain.

 

Thank you for sharing the details of your concern. You're totally on the right track. Yet, to break down credit card payments into expense sub-categories you have to manually undo the categorized transaction. 

 

To do that you have to:

  1. Go to Banking.
  2. Select the Categorized tab.
  3. Select the tile for the account you want to uncategorized.
  4. Select Undo.

 

After you undo the transactions, you can now view them under the For review Tab, from there you can select the transaction you want to manually sub-categorize.

 

Here's How:

  1. Select Split.
  2. From the Split transaction tab, fill out the necessary field.
  3. Click Apply and accept. 

 

Once done, you can now set your own banking rules. For a detailed explanation of this, you can refer to this article:

Set up bank rules to categorize online banking transactions in QuickBooks Online.

 

If there's anything else you need to accomplish for your banking transactions, please let me know by leaving a comment below. I'd be more than happy to work with you. Keep Safe!

 

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