What Is a Split Distribution?
Note: Split distribution entries can originate in General Ledger
or Accounts Payable.
A split distribution is a recurring journal entry you define to distribute a transaction line amount to another account over several periods. This is often used for prepaid expenses to post part of the prepaid amount to the actual expense account for each period. The system distributes the transaction line amount evenly to each period selected. You have the option to adjust the scheduled amounts as needed.
Example
You pay insurance premiums in advance for one year, but you want to use a split distribution to post part of the prepaid amount to the insurance expense account for each period. You paid $6,000 at the beginning of the year. Creating a split distribution results in the following monthly entries for the year:
| Account Name | Debit | Credit |
|---|---|---|
| Prepaid Insurance | $500 | |
| Insurance Expense | $500 |