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BlackberryMeadows
April 2, 2025
Question

Splitting a transfer

  • April 2, 2025
  • 1 reply
  • 0 views

I'm trying to reconcile a Line of Credit.  When I pay down the LOC, the money is transferred from one bank to the one holding the LOC.  When the payment leaves the first bank, it's recorded as a Transfer in Quickbooks.  When it's applied to the LOC, the principal and interest are split at the receiving bank (LOC).  I can't reconcile my LOC i because the payments I made aren't split between principal and interest - they are just considered a "transfer" in quickbooks.  How do I split the transfer to account for the balance difference when I reconcile?  Unfortunately, I'm not well versed in using Journal entries.  

 

 

1 reply

Rainflurry
Rainflurry
April 2, 2025

@BlackberryMeadows 

 

A transfer doesn't allow you to split the entry between the LOC and interest expense.  You should record the payment manually using either an Expense (New > Expense) or Check (New > Check) transaction.  Select the bank account that you are making the payment from under 'Payment account'.  Then, on one line, select your LOC under Category and list the principal amount.  On another line, select Interest Expense and list the interest amount.  That's it.  No journal entry needed.    

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