Record a payment to your line of credit in QuickBooks Online

Learn how to record making a payment on a line of credit.

With QuickBooks Online, you can track the payments you make to your bank or creditor on a line of credit.

Note: Just looking to record paying down your credit card? See how to record making a credit card payment instead.

Pay with a paper cheque

If you’re going to send the bank or creditor a paper cheque, follow these steps:

1. Select + New.
2. Under Suppliers, select Cheque.
3. In the Payee field, select or enter the name of the financial institution.
4. Select the bank from the dropdown list in the Bank Account field.
5. In the Category details section, select Line of Credit from the Category Type field and enter the amount you want to pay down the principal.
6. Select Line of Credit from the Category Type field and enter the amount you want to pay down the principal.
7. In the Category details section, select Interest paid from the Category field and enter the amount you want to pay down the interest.
8. Select Save.
9. Select Yes if you double-checked the date.

Pay with a debit or credit card

If you’re paying the bank back with a debit or credit card, you can:

• Record the repayment as an expense
• Categorize the expense when it comes in to your bank feed

Either way, be sure to split the expense between principal and interest in the category details.