Indirect settlement
Related to my earlier post: http://feedback.splitwise.com/forums/162446-general/suggestions/10304280-3-way-or-multiple-way-settlement
If Alice owes Bob, and Bob owes Carl, then there must be a way in which Bob can make an entry in SplitWise to link Alice and Carl (assuming they're known to each other) so Alice can directly pay Carl.
Please add a way to have SplitWise calculate multiple-way settlements, and provide options for indirect settlement.
This feature already exists on Splitwise within a group.
If Alice, Bob and Carl are in a group on Splitwise, and you turn on the ‘Simplify Debts’ option in the group settings, Splitwise will do exactly what you mentioned, it will transfer debts around to ensure that a minimum number of payments have to be made to settle up.
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meghagupta245 commented
sorry, this doesn't work at all. I have been using splitwise regularly, but the settlement in a group is never simple. My experience is everybody moves around some money while in fact only one person would have been the net recipient. that's not optimum at all
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Nagarajan Subramani commented
If Alice owes Bob, and Bob owes Carl, and Carl owes Alice, there really should be a way that the three can agree on SplitWise to settle their debt three-way. This problem can be extended to any number of people.
SplitWise should be able to deduct mutual debts and only show the final differences in the debts page. Please introduce a feature for this.