To mark any liability as paid from proceeds, they need to be added as part of a refinance purpose.
On the Transaction page, select the Refinance purpose
Select the liabilities you want to add
If the Refinance purpose has already been selected, you can click on the Add Purpose button and select Refinance again. This will bring up the list of liabilities
On the Credit & Liabilities page, those liabilities will be marked as payoff From Proceeds
