Understanding Transaction splitting

Note:  This topic refers to functions that let you match transactions, such as Account Allocations (ACA), and is not relevant for transaction splitting with the Scheduled Payments functionality.

Account Allocations (ACA), and online allocation as part of the Ledger Entry (LEN), can be used to allocate or match part of a transaction. This is typically required when you a receive an under or over payment for an invoice.

Note:  You can select the transactions you wish to split from a control desk using the Split Process batch option on the control desks in-tray.

To match part of a transaction you must split the original transaction into two or more transactions with different amounts. The total amount of the split transactions must equal the original transaction amount, in each currency.

The original transaction is either amended, or it is retained unchanged and a correction transaction is generated to reverse it. This is determined by the Preserve Original Line Values setting in Ledger Setup (LES).

There are several different ways to split a transaction, depending on your requirements:

  • Unsigned Split - this is the default split option which splits one transaction into two transactions with the same debit or credit sign.
  • Signed Split - this also splits one transaction into two split transactions but with opposite debit/credit indicators.
  • Multi Split - this allows the original transaction to be split into more than one new transaction, a mixture of debits and credits if necessary, all of which must total the original transaction value. The transaction can only be split into the existing currencies referenced on the transaction.
  • Currency Split - this split allows the original transaction to be split into more than one new transaction, and allows the transaction to be split across different transaction currencies (in Value 2 or Value 4).

When you have split a transaction, the new transaction appears immediately above the original transaction in the allocation transaction list.

Note:  The new split transactions are not posted to the ledger until you select the Post action. On posting, if the original transaction you split was linked to other transactions using Link Reference 2 or a Revaluation Link, those linked transactions are split in the same proportions automatically.