Manual transactions

In This Article

• Overview
• How to Add a Manual Transaction
• How to Split a Bank Transaction
  • Example: RWT Gross Up for a Real Estate Agent
• How to Enter a Year-End Adjustment
  • Example: Gross Up Rental Property Income
• Reviewing and Filtering Manual Transactions
• Delete Manual Transactions
• Upcoming Features

Overview

The Manual Transactions feature in Prosaic allows you to manually enter transactions or adjustments for clients . This is useful for making adjustments that aren’t captured by bank transactions. There are three key use cases:

1. Adding a missing expense or bank transaction – e.g., a spend or receive money transaction that is missing from a bank account
2. Splitting a transaction – e.g., breaking down a cash deposit into separate income/expense items.
3. Entering a simple journal – e.g., a year-end gross-up for rental income.

In our early release version there are some minor limitations

• You can split transactions by balancing credits & debits (journal style), but full split linking to bank transactions will be available soon.
• You can’t attach documents yet, but this functionality is coming.
• Manual transactions must be associated with a bank account. This ensures they are included in tax reports. Prosaic doesn’t yet support linking transactions directly to an entity (or a client) but that’s planned for the future.

However, Manual Transactions provide an easy way to make necessary tax-period adjustments within Prosaic.

How to Add a Manual Transaction

• Navigate to Manual Transactions
  • Open the Cashbook Transactions screen.
  • Load the client’s bank accounts and select a date range.
  • Select the Add Manual Transactions .

• Adding Transactions
  • You can enter single transactions or multiple transactions at once.
  • Transactions can be:
    • Spend or Receive (e.g., expenses, income)
    • Balancing Credits/Debits (e.g., journal style adjustments)
• Entering Transaction Details
  • Date – Set the transaction date.
  • Description – Enter a meaningful description.
  • Category – Select the appropriate category.
  • Tags – Apply relevant tags if needed.
  • Bank Account – Choose an account from the currently loaded transactions view.
  • Amount –
    • Enter positive numbers for credits (income).
    • Enter negative numbers for debits (expenses).
  • GST Treatment – You can enter amounts as GST-inclusive or GST-exclusive, and Prosaic will calculate the tax component
    • The "Incl Tax" field is what will appear in in the transaction view on the cashbook
    • This is for consistency with bank transactions which are retreived GST inclusive from bank accounts by default

• Saving Transactions
  • For a single item, click Save – it will now appear in the transaction view.
  • For balancing items, use multiple lines to ensure the entry balances before saving. See more below

How to Split a Bank Transaction

Ahead of support for 'linked' transaction splitting , you cab manually enter the split using a balancing journal entry.

Steps for Splitting a Transaction

1. Identify the original bank transaction (date, amount, and category)
   1. You can code this to the same category (eg sales) and incl GST, or simply code to transfers or equity without GST (or use a #tag as a holding category) so long as you apply the same coding when you balance
2. Open manual transactions and start with an entry to zero-out the money in or money out bank transaction
3. Then add separate line items to break it down into its components, including GST where applicable (or not, for example RWT)

Example: RWT Gross Up for a Real Estate Agent

Where a contractor receives schedular income with RWT and commission deducted, you can record original gross income (to calculate GST), any deductions, and balance against the final payment deposited in the bank account

In the example below, the client (a real estate agent) has received a cash disbursement of $13,354.55, but from their employer a full statement of income that shows

• Gross income (incl GST) of $26,942.80
• Commission fees (incl GST) of $10,777.12
• RWT @ 20% has already been deducted and paid to IRD for $2,811.13

To split this transaction, record the correct GST on income AND commission fees, follow these steps.

Manual Entry Steps:

• Code the original bank transaction received (either to sales, transfers etc)
• Copy the amount from the original credit (right click on the amount field to copy)

• Create a new manual transaction
• Net out the original bank transaction by entering a balancing debit, code to the same date/category as the original transaction.
• Then add new line items to split the transaction, eg
  • Gross sales commission income (incl GST)
  • Any commission fees deducted
  • Any RWT deducted
• When adding credits and debits to manual transactions, the combined total will display so you can ensure they balance
• eg like below (and screenshot)

After saving, this split will be reflected in the transactions view as new transactions with a 'manual' label. The new gross income will refect any GST on the original amount, and the cash received will be zeroed out from sales income

How to Enter a Year-End Adjustment

If you need to gross up rental income (e.g., to account for withheld tax), follow the same steps as splitting, but apply one adjustment (journal style) instead of breaking down a specific transaction.

Example: Gross Up Rental Property Income

• In the cashbook transaction view you can code all disbursements from a property manager or host platform to the same account code (eg Rental Income, or Transfers)
• Drill into this category to see the total for the year (eg $30,485.87 which you can copy from the table

• Then create a manual transaction to debit this amount, and add back in the gross income from a property agent or platform like AirBnB

• Enter transaction lines as follows

This ensures financial reports reflect the correct pre-tax income.

Reviewing and Filtering Manual Transactions

• You can filter transactions by type to quickly find manual entries.
• In the Cashbook Transactions screen, manual transactions are labelled for easy identification.

Delete Manual Transactions

• To delete a manual transaction, hover over the 'manual' label and select delete

Upcoming Features

Prosaic is actively working on enhancements to Manual Transactions, including:

1. Editing Manual transactions - at this time you can delete, but not edit. This will be coming soon
2. Transaction Splitting with Linking – Soon, you won’t need to manually create a balancing journal.
3. Document Attachments – You’ll be able to upload receipts and invoices.
4. Entity-Based Journals – When entity-level reporting is introduced, journals will be tied to specific clients rather than bank accounts.