It appears that Equity and Stock accounts are ineligible for split banking transactions, and I'm curious:
a) Am I missing something?
b) If not, why is there this unnecessary limitation?
My use case is as follows:
We are a manufacturer. A good chunk of our labor is recorded as piece work, which is then attached to the overall inventory cost (rather than being deducted immediately as labor). Additionally, we distribute funds to our ownership periodically via the same payroll system.
The money is removed from our bank account (CR) in a single transaction to the payroll services provider.
The debits are split between the appropriate accounts, including:
- Payroll (expense)
- Direct Labor (COGS)
- Inventory - Piece Work Labor (stock)
- Owner Draw (equity)
- Employee Withholdings (other current liability)
- Payroll Taxes (expense)
I can't seem to get access to debit the Equity or Stock accounts when splitting the debits for this transaction. How do I accomplish this in the single transaction?
I'm not looking for a hacky multi-transaction workaround. This is a single transaction in real life, it should be a single transaction in my books. This process is very easy to do in Quickbooks, so it's not like I'm asking for the impossible.