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 […]
Resolution for 'CoA account issue: 'Best way to enter a loan payment?' available: Yes.
The CoA account 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 CoA account issue yourself by looking for a resolution described in the article. If it is a complex CoA account issue or you are unable to solve the issue, you may contact us by clicking here or by using other CoA account support options.
For more information about resolving issues related to CoA account in Quickbooks/QBO or to get support for the issue 'Best way to enter a loan payment?', click the link below: