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Tagging payrol from bank

Normally, I tag Director’s pay using the “Salary Dividend or other drawings” and tick the Director box. However, sometimes a dividend is paid at the same time as the salary and I need to split the bank transaction. There is no option to tick Director pay here. How do I find out what ticking that box is doing and replicate it?

I’d just tag the payment out of the current account as a bank transfer to Director’s Loan and then manually create the separate transactions for salary and dividends as money out of the DL.

I can see that would work, but I’m trying to understand what the tick box does as much as anything.

The split tagging option is only available for the “something not on the list” tag type which normally just creates a single entry directly in a nominal ledger account, bypassing all the sales/purchases/dividends etc infrastructure. The split tag thing is just a shortcut for creating a journal where the bank transaction is one side (debit if it’s money in, credit if it’s money out) and the other side is split across nominals as you select.

All the other tagging types (payment from customer/to supplier, dividends, etc) you have to tag the whole bank transaction. So if you have a payment like this that is a split you have to either transfer to a bridging bank account like DL, or delete the aggregate transaction and manually create two smaller transactions that add up to the same total.

If its salary and dividends they could just tag something not on this list and split the payment that way.

When I use “Something not on this list”, I get a balancing journal - Debit money from bank and credit the nominal code of my choice (ie net wages & Dividends)

However, if I use the “Salary, Dividend,…” option, it only makes a debit from net wages, doesn’t create a journal at all.

If I have already created the Journal for the wages, (which includes net wages) will using the “something not on this list” journal function duplicate anything?

The dividend option is the equivalent of a single-nominal “something not on the list”, which does a debit on net wages and a credit on the bank account nominal - think of it as if it were a simple journal with just two lines.

Your payroll journal should have put a credit on net wages, which the debit created by “salary/dividend” will balance out to zero.


In nominal account terms money out of a bank account is credit and money in is debit - yes, it feels wrong when you’re used to looking at bank account statements that use “debit” and “credit” the other way round but it is in fact correct. The difference is that the statement your bank sends you is their view of you from their perspective, whereas QuickFile is your view of the bank from your perspective, so they are supposed to be mirror images.