QB Issue Resolution:

Transfer or JE? Neither and never. Transfers are between same type accounts, mostly bank to bank. You are paying a liability from an asset. JE will just mess you up when all you want to do is record a check.

 

Use Write Check for payment against principal (the COA account) and post interest as a charge. To properly do this the easiest a loan of this type should be set up as a credit card type and enter the interest as cc charge. Otherwise you will want to post a zero sum Expense that offsets charged interest to principal

Resolution for Issue 'Best way to enter a loan payment? I have a loan set up as a balance sheet account in QBO. I will make an electronic payment to this loan periodically. Should I do it as a “transfer” or as a “journal entry”? I don’t need to record the interest with the payment so it could be a transfer (interest is billed and paid separately from principal payments). Thanks!' available: Yes (Solved).
Source: Intuit Community forum.

Best way to enter a loan payment? I have a loan set up as a balance sheet account in QBO. I will make an electronic payment to this loan periodically. Should I do it as a “transfer” or as a “journal entry”? I don’t need to record the interest with the payment so it could be a transfer (interest is billed and paid separately from principal payments). Thanks!: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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