Loan was paid off

I’m glad to see you in the Community, Priolo.

Clearing the loan balance in your QuickBooks is quick and easy. Let’s record the repayment to fix the issue.

1. In your company, tap the New menu in the upper left and choose Check under Vendors.
2. Click the Payee drop-down and select the supplier’s name and enter the correct account in the Bank Account field.
3. If you use direct withdrawal or an ETF, enter Debit or ETF in the Check no. box.
4. Under the Category Details section, go to the first line and click the Category drop-down to select the liability account (loan).
5. Key in the loaned amount in the Amount (USD) field.
6. On the second line, select the expense account for the interest from the Category drop-down and enter the interest amount.
7. Tap the Save and close button.

If you’re unable to set up the liability for your loan and record the money, this article will walk you through the step-by-step process: Set up a loan in QuickBooks Online.

For tips and resources on how to efficiently handle any accounting tasks, let me share the link to our self-help articles: QuickBooks guide. It includes topics about payroll, taxes, banking, managing customers’ or vendor transactions, etc.

Feel free to visit the Community again if you have additional questions about loans and other QuickBooks concerns. I’ll be right here to help and make sure this is taken care of for you.

I have the same situation . and paid off the loan on the property. 

Do you know by any chance how to record accrued interest and prepayment premium on that loan? 

Thank you

I found this question while trying to figure out how to zero out a balance showing due on an account I recorded a check I used to pay it off early. I was surprised how hard it was to find an answer to this because I know we are not the first people ever to pay off a loan a little early - I never did find an answer, just finally figured it out after an hour on quickbooks chat that was a lot of things that didn't work, including suggestions that I write and pretend to reconcile a check for money I didn't owe and just move the balance to another loan that wasn't paid off yet. Here's what I did: Say the balance left on (account name) before payoff was $1000, to payoff early was $950, so after writing a check it would look like there was still $50 owed.  You would write the check like this: $950 check, first line (account name) $1000, second line (account name) -$50, matches check amount of $950, makes the account balance zero, and lets your accountant know what they need to without any pretend checks. Hopes this helps someone!