How can I combine two transaction entries into one entry with a split?

Question

I collect rent from two parties. Normally, I use the invoice and payment features which seem to work satisfactorily. My problem is each rent received occupies its own line in my main(deposit) register. Since I do not make individual deposits, I would like the register to reflect the combined deposit. I often pull some of the cash from the deposit to pay some expenses. It is easy to show this within a split resulting in an accurate deposit amount.

If I can combine two transactions into one, that would be great even if I have to return to the Rental Properties account and verify that the received payments are properly assigned.

The other way I can show a single deposit is to create each receipt and category expense within a split. Problem then becomes assigning those receipts to the proper renter account within the Rental Properties account. Selecting either the invoice form at the transaction or the payment form neither forms offer a solution.

volvogirl · Accepted Answer

What you need to use is an intermediate holding account. Set up an account and call it something like Checks Received or Undeposited Payments. Then enter the payments into it. Then when you make the deposit to your bank account you transfer the total deposit amount to the new account. That way when you download your bank transactions the deposit will match. Or you should use the holding account if you receive payments in one year (like in Dec) but don't make the deposit until the next year (like Jan.).

You don't run to the bank each time you get a check.  So you need a holding account so you can show the income when you received it.  Then you wait until you get a bunch of checks to go to the bank.

Boatnmaniac · Accepted Answer

Dave Robinson - I've used @volvogirl 's suggested solution myself for a situation similar to yours with good success.  The type of account to set up is a Cash account (under Banking).  This process is really helpful for improving upon the accuracy of data in the various Tax Reports without having to manipulate data (especially at end-of-year).  What I found to also be very helpful in doing it this way is I could always get a quick snapshot of the total value of all undeposited checks and cash without needing to add it all up separately.

Dave Robinson · Accepted Answer

Thank you Volvogirl for the idea and Boatnmaniac for added clarification. I will give that a try. I do like using the splits for combining and moving money. I know when I am reconciling a deposit from two register entries I can select both to clear.