We had a company pay on our loan so I need to decrease my loan payable. It did not affect our cash or payments. How do I record this in quickbooks?

We can create a journal entry (JE) to record and reduce your loan payable, Shannon.

First, we need to set up a special account to track the total funds provided by the state department, as well as another liability account for your loan payable. After that, we can record the funds using a JE. I recommend working with your accountant to ensure the account details are accurate and that the correct accounts are properly debited and credited.

Here are the steps:

1. Click the + New icon or (+) Create.
2. Select Journal Entry.
3. Debit the special account for the funds provided by the department, and Credit your loan payable account.

Since we already have them recorded in QuickBooks for tracking, we can create another JE for the loan repayment. In this entry, we will Credit the special account and Debit the amount paid to your loan payable to decrease the loan balance.

You can always reply to this thread to help you record your transactions and accurately track your finances.