Splitting Transactions: Generated Transactions

Suppose that you classify all your expenses by department by using a dedicated subaccount segment for each department code. By mistake, you have posted all your expenses to one subaccount, so that an amount has been posted to the Expense subaccount of one department (Operations) instead of three different departments (Operations, Financial, and Purchasing). Now you need to split the incorrect journal entry by creating a correcting transaction, so that the total amount will be split to the subaccounts of three departments in the following proportions: 40% to the subaccount of the Financial department, 20% to the subaccount of the Purchasing department, and 40% remaining in the subaccount of the Operations department.

The following table shows the journal entries of the original GL transaction of the Normal type.


Account	Subaccount	Debit	Credit
Accounts Payable account	000-000	00.00	Amount
Expense account	000-OPS	Amount	00.00

The following table shows the lines of the correcting GL transaction of the Reclassification type.


Account	Subaccount	Debit	Credit
Expense account	000-OPS	00.00	0.4 * Amount
Expense account	000-FIN	0.4 * Amount	00.00
Expense account	000-OPS	00.00	0.2 * Amount
Expense account	000-PUR	0.2 * Amount	00.00

As a result, if $100 had been originally posted to the Expense subaccount of the Operations department, $40 will be posted to the Expense subaccount of the Financial department, $20 will be posted to the Expense subaccount of the Purchasing department, and $40 remains posted to the subaccount of the Operations department.