I'm having a similar issue and the responses don't make sense to me. We had the loan repaid via a wire transfer so it shows up in our bank transactions. If I categorize it as the loan, then it shows as an expense, which isn't correct. But it's not a transfer or credit card payment either. So how do you record it? Step 3 in the article linked talks about a new check not a payment that was already made. I tried doing a new check to record the wire transfer and then match it but that didn't work either.