I am working with quickbooks - I am having difficulty with the opening balance equity account.

When you set up an existing loan for the first time, it puts the opening balance in opening balance equity. But when you post payments to the longterm liability account it doesnt decrease the obe account.

How do you avoid this? Should you just post a journal entry to the liabillity account -? But it's confusing the way this works in quickbooks.

This is an operating loan for example. Do I post it to capital ? Quickbooks doesn't explain this very well.