To discharge a liability you need go through the following steps. Create a transaction type “Discharge of liability” (available if you change the upper line when you are adding a new transaction).
Choose the account, which you are going to use to discharge your liability.
Select the actual liability.
Set your interest amount.
Set your principal amount.
And if you want to discharge the liability more than it is due, set your extra payment.
Discharging liabilities transaction is used when you have a liability and interest. For example, it can be used when you discharge your mortgage liability, credit lines and credit cards.
Please note:
You can create your own expense category, and call if for example “Credit Expenses”, and if you choose it when you use the Discharge Liability transaction, you will be able to track expenses for this category in the reports (i.e. this transaction will be assigned for this category).
Interest field shows charges that appear when you have a transaction, which affects your account balance, but does not affect your liability.
