1,overdraft is not expenses at all, it is money you withdrew from your bank account. 2, it might cause bank fee because you due money to bank by overdraft, seems like a loan from bank, if there is bank fee caused by overdraft, record this bank fee. 3, for overdraft itself, you can record in QBO as loan from the bank, remember return this money back into your account by depositing the money.please give comments if my answer is right.