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Interest Posting to Loan accounts from Bank feeds on Interest Only payment from Checking Account

When I make a payment thru online banking from a checking account to a loan account, the interest payments always feed back to the loan side of the register in what appears to be a principal payment. I am sure that there is a reason for this but I am trying to get it to show as a debit to the checking and a credit to interest expense without having to reset the transaction in QB.  I am sure it relates to how I have interest accounts and rules set up but need help. I am newer to QB....Thank you

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Interest Posting to Loan accounts from Bank feeds on Interest Only payment from Checking Account

Thanks for the details, bfrank1.

 

When paying a loan, the principal account and the interest will both show in QuickBooks. It's possible that the interest payments was linked to the credit card account instead to the Interest (expense) account.

 

We'll have to make sure that the Interest was categorized under the expense account.

 

Afterward, let's create a Journal Entry and match the transactions.

 

Before doing so, I would recommend reaching out to your Accountant to help you select the correct accounts to be used.

 

  1. Click the + New button.
  2. Under OTHER, select Journal entry.
  3. In the first line, select an account and enter an amount on the DEBITS column.
  4. Select an account, and enter the same amount on the CREDITS column.
  5. Click Save and close.

 

I'm just around if you still have other questions about Banking!

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