Loan payments

One bank withdrawal is two books: principal and interest.

What This Is

The lender takes one amount. The books have to split it. Principal pays down the loan. Interest is the cost of borrowing.

Tally will recognize a loan-looking draft and hold it as special work. It will not invent the split.

If the whole payment hits an expense, the P&L looks worse than the business is, and the loan never shrinks on the Balance Sheet.

One bank withdrawal of $1,240 splits on the books into $980 principal and $260 interest

Use the lender's split

Read the amortization schedule or the statement. If last month's split is all you have, park a note and come back. Do not invent the interest.

Leave the row in Fast Coding. Do not code the whole amount to an expense. See Understand what is waiting in Fast Coding.
Open the loan schedule or statement and write down principal and interest.
Post a balanced journal entry: debit the loan, debit interest expense, credit the bank.
If the bank feed still shows the withdrawal, exclude or match it to that entry so it does not post twice.
Check the loan register. The remaining balance should match the lender.