Applying one payment to two different supplier invoices?


I have a problem where I have two invoices from essentially two separate suppliers (although they are part of the same corporation) being paid by the one organisation and I can’t seem to allocate both invoices to the payment. When I select multiple payments when tagging the payments it only allows me to select one supplier to attach the payment to but I need to select multiple suppliers.

I’m sorry if I’m not that clear but I hope you can help me.

Many thanks,


Hi @hugofoto

There’s two ways you can handle this…

  1. Simply split the entry on the bank to two individual transactions and tag each to the relevant supplier (ideal if this is more of a one-off situation).

  2. Create another dummy bank account called “Split payment holdings” or maybe the name of the supplier. Tag the lump payment as a transfer to this bank account, then add two opposing entries for the split amounts and tag them individually to each supplier.

As I say option 1 is ideal if it’s a one-off, otherwise I would use option 2.

Hi - thank you so much for your again very efficient response.

This is unlikely to happen very often but it may happen again.

On that basis I should probably opt for option 2.

However I am still confused how I can add two opposing entries for the split amounts, tagging them individually when I have made a lump transfer to the new dummy account.

In addition to this how can I split the entry to two individual transactions? I can’t see any option to do this?

Thank you so much for your support!

There isn’t a way to split the entries directly, you would need to delete the original entry and create a 2 new ones.

You essentially end up with:

  • A money in transaction into your dummy bank account, for each payment. So if you’re splitting £100.00 into £60 and £40, you would have both the £60 and the £40 here
  • A money out transaction from your dummy account for the total, in my example of £100
  • A money in transaction into your current account, tagged as a transfer from the dummy account

ok - thank you for explaining that.

I’m sorry for needing the step by step baby instructions - thank you for your patience.

When creating a new bank account (my dummy one)

  1. The bank name should be listed as ‘other’?
  2. Account type: Current?
  3. Account Name: potentially the supplier?
  4. All other details like sort codes etc I leave blank?

Does that sound correct.

The reason behind my questions is I want to make sure that these details are true so that they are carried through when I am making VAT calculations.

Current account would be fine. You don’t necessarily need to be as specific as setting the name to that of the supplier. You could leave it generic like “Split payments” and use it for multiple occasions where you have this situation.

Sort code, account number etc, can be left blank.

When it comes to VAT, the important things are:

  • The invoices and their VAT rates and settings.
  • If you’re on accrual accounting, the date of the invoice is also important
  • If you’re on cash accounting, the date of the payment is also important

YAY!! I did it! Thank you for your help!

Referring to option 1, if I wanted to ever use that option, are you suggesting that I delete that transaction and enter the transactions manually in two separate payments and then tagging them respectively?

Well done :slight_smile:

Option 1 is basically a more basic version of option 2.

Whereas option 2 uses a holding account, option 1 skips that part and does it straight in the current account. The advantage is has it you don’t have a holding account for just 1 payment, but the disadvantage is it may not represent your bank statement directly (as your statement would show as 1 payment, whereas QuickFile would show 2).

This is the route for ‘option 2’, compared to option 1:

  • If you’re splitting £100 into £60 and £40, delete the original transaction for the £100, and create two new transactions for the £60 and £40, and tag them to the separate invoices or client/supplier accounts

ok - I think I can grasp most of that!

My only other concern is related to the VAT. When Quickfile is collecting all the data for the VAT calculations is it going to take the VAT information from the actual invoices themselves, regardless of how they are then tagged in the bank accounts. Therefore as long as I have written the actual invoices correctly, there will be no problems in that area?

It depends. Are you on cash or accrual accounting for VAT?

Invoice data will always be the source of the rates, but depending on what scheme you’re on, depends on how the return is calculated.

If you’re on accrual, then the invoice date will be used to calculate when VAT will be due for that sale.

If you’re on cash accounting, then the payment date will be used. This also takes into account any prepayments assigned to a client or supplier, and not just invoices.

We are on Accrual accounting…

Thank you so much again for your patience and kindly explaining everything to me!


As long as all your invoices are entered correctly, it should be fine.

However, if in doubt, run them past your accountant or bookkeeper first.

We always suggest you download the backing report for any VAT return too (by clicking ‘Download Calculations’), which shows you how the figures have been calculated.