Expense vs Income

Sometimes I need to allocate a cash inflow against an existing expense, but I can only allocate an 'income' to income or transfers grouping.
An example: I buy concert tickets for 6 friends - R 500 * 6 = R 3,000. This is an entertainment expense allocated to exceptions grouping. 5 of those tickets I get reimbursed for by my friends. I want to allocate this R 2,500 to entertainment expense- exceptions as I want to offset the reimbursements against the expense. But when I try allocate the cash inflow, I can only allocate to income or transfer grouping.

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3 comments
  • Hi Lyndall,

    Thanks for getting in touch!

    You're correct - we don't offer the ability to categorise income as expenditure (and vice versa), or to net off transactions against one another. However, I do have a potential solution to your problem.

    22seven allows you to split transactions in up to 5 parts. In the case of your example, once you're reimbursed by all five of your friends, you can simply split the R3 000 transaction into two parts of R2 500 and R500 each. Next, categorise the R2 500 as a Transfer, which will ensure that it doesn't contribute towards any of your expenditure totals and artificially inflate them.

    You will then be left with a single expense of R500, which you can categorise accordingly. If your friends paid you back electronically, I would suggest that you categorise those transactions as Transfers as well to ensure they don't inflate your monthly income.

    I hope this helps! Please let us know if you have any more questions regarding this :)

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  • Thanks this is a clever work around, I will remember to do this to keep the amounts correct, also it keeps check of who hasn't paid. 

     

     

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  • Hi Guillym,

    Great to hear! Give us a shout if you have any other questions :)

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