Accounting > Frequently Asked Questions > Can I setup accounting splits and use Xero tracking categories?

Yes, it is possible to use both accounting splits and tracking categories. This is usually used if you have multiple general ledger accounts for similar expenses and you also use tracking categories to show expenses according to a different grouping.

Example:

ABC Company has the following ledger accounts (among others):

  • Salaries and wages – Branch A
  • Salaries and wages – Branch B

The company also has a tracking category to show the breakdown of Department – Marketing, Operations, Finance.

In SimplePay, you would create pay points for the various departments and assign a pay point to each employee. You would then assign each pay point in SimplePay to the relevant tracking category from Xero.

In SimplePay, you would then create one accounting split for Branch A and one accounting split for Branch B and add employees individually to each accounting split. You will then be able to map the expenses for the Branch A accounting split to the Salaries and Wages – Branch A general ledger account and the expenses for the Branch B accounting split to the Salaries and Wages – Branch B general ledger account.

The result is that the company can see the breakdown of expenses according to branch by seeing the total of the different ledger accounts and then also see the breakdown according to department by using tracking categories.

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