Split Payment in Groups
When we press Settle Up, it shows paid in personal expenses and enters an appropriate transaction in other groups common to both. But this leads to confusion. I suggest that when you press settle up there should be an option to split the paid amount among groups as you wish. For example : - Say A owes B $400 (personally) and $600 in a group. Now A wants to pay $500 to B but $200 personally and $300 in the group. As of now it will show a single transaction in personal (& nothing in group - Though there is an option to go in the group and press settle up against the person you want to pay). It would be convenient to split payments among different groups in single window just like we split bills among various friends.

I’ll pass on the suggestion! For now, it’s always possible to enter two separate payments, one from the group screen and one from the friend screen – that should let you allocate your payment however you’d like.
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mhrock commented
How about splitting non-group payments among debts in various groups? Say you have a person A and a person B in groups G1 and G2. B owes A $10 in G1 and $15 in G2. Then B pays A $22 without specifying a group for this payment (and still owes $3). The group debts could be lowered proportionally, eg. to $0 in G1 and $3 in G2. It could be an optional feature while adding a non-group payment with B, even for manual distribution up to the available amount (i.e. paid by B to A, $22 in this case).