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Buy nowThank you for providing follow-up details about your concern, @amit6. I'm here to ensure you're able to record the interest on the balance used from your overdraft limit in QuickBooks Online (QBO).
Let's create an expense to record the interest charged by your bank from your overdraft limit. Before that, I'd first suggest setting up a dedicated expense account to track it. I'll guide you how.
For the detailed instructions, see Step 2 from the Set up the accounts for your line of credit section through this article: Managing A Line Of Credit (LOC). It also provides you more information on how to track your LOC.
Once done, let's enter an expense and make sure to choose the expense account you've just created. You've provided a sample of $50 bank credit that you paid to your supplier above. With this, I used the amount on my screenshot below.
After that, let's go to the Chart of Accounts menu. Then, locate the expense account and click Run report from the Action column. This way, you'll be able to keep track of its transactions. View the screenshot below for your visual reference.
In case you're using bank feeds, you'll have to match the $50 charge from your overdraft limit to the expense you've entered. It helps you ensure there are no duplicate entries in QBO. Also, it keeps your records accurate before reconciling your bank account.
I'm just a post away if you need anything else. Enjoy the rest of your day, @amit6.