How to reconcile and split entertainment 50/50 in Xero
March 26, 2013
The majority of our clients entertain their own clients and they can deduct this as an entertainment expense.
But it is not fully deductible and needs to be split 50/50 between ‘entertainment’ and ‘entertainment non-deductible.’ By setting up an entertainment rule, this makes reconciling these transactions easy and fast.
- Click ‘add details’ on the right of the screen next to the transaction you are wanting to reconcile
- On the first line under Description type in what it was e.g Client Meeting
- Under Quantity enter in .50 as we are splitting this transactions 50/50
- Leave unit price as original full amount
- Code the Account to ‘Entertainment’
- Enter in the same details on the second line but this time you will code the Account to Entertainment – Non deductible
- Save transaction and then hit reconcile at bottom of the screen.