QBO-Tracked Loan Paid Off by Non-QBO Account

Hey there, Teesa66.  

Yes, you can. I'll explain how the journal entry work in QuickBooks. The journal entry is a record of a transaction in which the total amount in the Debit column equals the total amount in the Credit column, and each amount is assigned to an account on the chart of accounts.  

When a transaction is entered directly into a non-bank balance sheet account register, QuickBooks automatically labels the transaction GENJRNL in the register and General Journal on reports that list transactions.

You can make journal entries in QuickBooks by following these step-by-step instructions:  

1. In your QBO account, click the + New button.
2. Choose Journal entry.
3. On the first line, select a payable account from the Account field and the amount. 
4. On the second line, choose the other account you're moving money to or from and enter the same amount in the opposite column.
5. Enter information in the memo section if needed
6. Choose also the name of the vendor under the Name column.
7. Lastly, click Save and new or Save and close.

I'd suggest consulting an accountant to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation and help you create the right account. If you don’t have an accountant, you can find one here: Find an Accountant.  

I'd like to know how you get on after trying the steps and consulting your accountant, as I want to ensure this is resolved. Just get back to this post, and I'll get back to you. Take care always.