Purpose
Ensure the Café P&L used for Filip profit share includes:
Café-only spend captured automatically (Mercury IO credit card)
Non-café + shared spend captured in Ops
Shared costs allocated using Kick Allocation subcategories + Split Rules + Class mapping
Frequency
Monthly, after most recurring bills for the month have posted.
Systems
Kick (primary)
Mercury (spend source)
(Optional) your vendor/% list for fixed allocations
A) One-time setup (do once)
A1) Accounts policy
Mercury IO credit card = Café-only purchases
Mercury Ops checking = everything else (Catering + Admin/Non-Café + shared)
A2) Create Allocation subcategories (only for parents you split)
For each parent category you plan to split, create exactly:
[Parent] – Café Allocation
[Parent] – Non-Café Allocation
Typical parents you’ll use:
Software & Subscriptions
Utilities
Insurance
Inspections
Mortgage / Occupancy
Auto & Vehicle
Supplies & Equipment
Payroll (Wages/Contractors/Employer Taxes)
A3) Rule Groups (recommended)
Split Rules
10 Shared Splits
Transaction Rules
00 Defaults
10 Vendor & Base Category
20 Shared Class Mapping
30 Vertical Rules
40 Exceptions
A4) Core rules to create
Transaction Rule (Defaults)
If Account = Mercury Credit Card (IO) → Class = Café
Transaction Rules (Shared Class Mapping — explicit per category)
For each split parent category, create TWO rules:
If Category = [Parent] – Café Allocation → Class = Café
If Category = [Parent] – Non-Café Allocation → Class = Admin/Non-Café
Split Rules (Shared Splits — recurring shared vendors)
For each shared vendor with a fixed Café %:
Split into:
% → [Parent] – Café Allocation
% → [Parent] – Non-Café Allocation
Vertical rules (non-shared vendors)
For vendors that are clearly one vertical:
Vendor → Class = Catering (etc.)
No split.
Exclusions
Sales tax and Places for Eating tax: no allocation (treat as tax/liability flow)
B) Monthly close (do each month)
Step 1 — Confirm month completeness
In Kick, scan the month for missing major recurring bills (utilities, insurance, subscriptions).
If a material bill hasn’t posted, either wait or accept it next month (be consistent).
Step 2 — Quick classification audit
Filter Account = Mercury Credit Card (IO) → confirm all are Class = Café
Filter Account = Mercury Ops → confirm:
Shared overhead is not mislabeled as Café
Catering vendors are Class = Catering
Unknowns default to Admin/Non-Café until clarified
Step 3 — Shared overhead: ensure splits are happening
For each recurring shared vendor:
If it already split into allocation subcategories → spot-check % is correct
If it did NOT split:
Confirm the parent category has the two allocation subcategories (create if missing)
Create/update the Split Rule
Confirm the Class Mapping rules exist for that parent
Step 4 — Shared ingredients (beans/matcha/chai): “physical stash” method
When a purchase is shared and divisible in units:
Decide units staged to Café vs Non-Café (e.g., 10 bags → 6/4)
Split the transaction:
60% → COGS [Item] – Café Allocation
40% → COGS [Item] – Non-Café Allocation
Add memo: Beans allocation: 6 Café / 4 Non-Café (10 total)
Step 5 — Payroll: split by hours per pay period (not revenue)
For each payroll withdrawal (and employer taxes/benefits if separate):
Pull Café hours vs Non-Café hours for that pay period
Split payroll transaction:
Café % → Payroll – Café Allocation
Non-Café % → Payroll – Non-Café Allocation
(Your existing class-mapping rules will set Classes on the split lines.)
Step 6 — Add rules for new recurring vendors
When you see a new recurring charge:
If it has a fixed Café % (shared overhead) → add Split Rule
If it’s clearly Catering-only (or other non-café) → add Vertical Rule
If it’s mixed (Amazon/Costco) → send to a “Mixed” category and review manually monthly
Step 7 — End-of-month verification (2 minutes)
Run P&L filtered to Class = Café
Should include IO café spend + “– Café Allocation” lines
Run P&L filtered to Class = Admin/Non-Café
Should include non-café spend + “– Non-Café Allocation” lines
Step 8 — Profit share calculation (Filip)
Café Net Profit (after allocations) × 25% = payout
Step 9 — Save audit trail (minimum)
Save/export:
Café P&L (Class = Café)
Notes on any exceptions / manual splits (payroll %, ingredient splits)
(Optional) month’s shared vendor list + any % changes
Troubleshooting (quick)
Split Rule didn’t fire: vendor text mismatch → edit condition; avoid requiring “base category” as a condition.
Class wrong on split lines: missing the two mapping rules for that parent category.
Too many rules: keep shared splits only for recurring vendors; don’t split small one-offs.