Really Elementary Question

@DPKH2024    It sounds like you're saying that, when you enter your credit card payment, you are entering it using the credit card interface, the same way as when you enter payments you made with the credit card.

If you set up the credit card properly in QB, there should already have been a credit card liability established. This is the liability account that should be increasing when you enter payments made by that same credit card.

If you set up a second liability account and are booking your payments on your credit card balance to this second liability, through your credit card, you're just going to make the credit card look like it's having more things charged to it, same as if you were buying something with the credit card.

You should be using another function, like Write Checks, or whatever the QBO equivalent is, to enter your payments on said credit card.

Let's figure out why the payment is increasing the liability account instead of decreasing it, DPKH2024. This way, we'll know what went wrong and implement a solution.

As FishingForAnswers pointed out, once you set up your Credit card (CC) in QuickBooks Online (QBO), it will be automatically classified as a liability account. May I know how you recorded the purchase and payment? Understanding the process you took will assist us in identifying the underlying reason for the issue you're experiencing.

In QBO, if you purchase an item using a bill or expense, it will be booked under the Inventory Asset account. Then, if you make a payment, you can use the Expense, Check, or Pay Down credit card feature.

Here's how you can record a payment by creating an expense entry:

1. Click +New and pick Expense. 
2. In the Payment account dropdown, select a Bank or Cash account.
3. Under Category, choose your Credit Card account and enter the payment amount.
4. Fill in the other necessary information.
5. Hit Save and close.

Additionally, when creating an inventory item, it is allocated to an Inventory Asset account.

Furthermore, check out this guide to help you organize your financial records: Categorize online bank transactions in QuickBooks Online.

If you have other questions about handling credit card payments and managing your accounts in QBO, comment below. I'm always here to provide prompt assistance.