Splitting Transactions: To Split a GL Transaction
In this activity, you will learn how to split a GL transaction into two new transactions.
Video Tutorial
This video shows you the common process but may contain less detail than the activity has. If you want to repeat the activity on your own or you are preparing to take the certification exam, we recommend that you follow the instructions in the activity steps.
Story
Suppose that on February 13, 2023, a GL batch for $212 was wrongly posted to the 81000 - Other Expenses account. This account should contain a $32 expense, and the rest of the expenses should be split between two other accounts. The expenses accounted for in this transaction should be the following:
- Travel expenses: $80
- Advertising expenses: $100
- Other expenses: $32
Acting as a SweetLife accountant, you have to split the original transaction, adding two correcting transactions to properly reflect the expenses.
Process Overview
In this activity, you will find and review the entry to be split on the Account Details (GL404000) form. On the Reclassify Transactions (GL506000) form, you will split the amounts of the original transaction. You will then release the transaction on the Release Transactions (GL501000) form.
System Preparation
To prepare the system, do the following:
- Launch the MYOB Advanced website with the U100 dataset. Sign in as an accountant by using the
following credentials:
- Username: johnson
- Password: 123
- In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, click the Business Date menu button and select 2/13/2023. For simplicity, in this activity, you will create and process all documents in the system on this business date.
- On the Company and Branch Selection menu, also on the top pane of the MYOB Advanced screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.
Step 1: Finding the Transaction to be Split
To prepare for splitting the transaction, do the following:
- Open the Account Details (GL404000) form.
- In the Selection area, specify the following settings:
- Company/Branch: HEADOFFICE (SweetLife Head Office and Wholesale Center) (inserted by default based on the selected branch)
- Ledger: ACTUAL (inserted by default)
- From Period: 02-2023
- To Period: 02-2023
- Account: 81000 - Other Expenses
- In the table, select the unlabeled check box for the transaction dated 2/13/2023 and the debit amount of $212, and on the form toolbar, click Reclassify to open the entry related to the account on the Reclassify Transactions (GL506000) form.
Step 2: Splitting the Transaction
To split the transaction, do the following:
- While you are
remaining on the Reclassify Transactions
(GL506000) form and viewing the entry to
be split, click Split on the form
toolbar.
The system has added a new line under the line with the original entry.
- In the columns of the new line, specify the following values:
- To Account: 54400 - Project Travel Expense
- New Amount: 80
Notice that the New Amount column for the original line has decreased by the specified amount for the new line and now shows 132.00.
- To enter the other new entry, click Split on the form toolbar.
- In the columns of the new line, specify the following values:
- To Account: 61000 - Advertising Expenses
- New Amount: 100
Notice that the New Amount column for the original line has decreased by the sum of the new amounts of the two new lines and now shows 32.00, as shown in the following screenshot.
- On the form toolbar, click Process.
- In the Processing pop-up window, which opens, click the Processed tab to view the list of batches.
Step 3: Releasing the Transaction
To release the transaction, do the following:
- In the table on the Processed tab in the Processing pop-up window, click the link in the Reclass. Batch Number column to open the reclassification transaction that the system has created.
- On the Journal Transactions (GL301000) form, which opens, review the transaction, and click Remove Hold on the form toolbar.
- On the form toolbar, click Release to release the transaction.
- In the table,
click
the link in the Orig. Batch Nbr. column to review the
original
transaction.
The system has opened the entry and marked the line with the 81000 account as reclassified. The Remaining Reclass. Amount column for this line shows the remaining amount of the original entry (32.00).
Activity Recap
In this activity, we have illustrated the following:
- The accountant found the transactions that had to be split by using the Account Details (GL404000) form, and then clicked Reclassify to start splitting the transaction.
- The accountant split the transaction into several new entries, splitting the original transaction amount between these new entries.
- After releasing the new transaction, the accountant has reviewed the original transaction and its amount after the split.