Unapplied Cash Payment Income

The fix depends on what these transactions actually represent. Recategorizing them as a Transfer or linking them to a matching invoice will clear them from your Profit & Loss report.

If these are payments you made to Capital One (paying down your credit card bill) that were wrongly categorized, you'll need to recategorize them as a transfer between accounts, not income. Here's how:

1. Go to Accounting and select Chart of Accounts, find your Business Checking account, and click View Register.
2. Open the first Capital One transaction and select Edit.
3. Change the account to your Capital One Credit Card account and click Save.
4. Repeat for the remaining two transactions.

These should clear those transactions on your Profit and Loss report.

If these are customer payments that came in, link each payment to its matching invoice. When a payment isn't connected to an invoice, QuickBooks parks it in Unapplied Cash Payment Income until it's matched. Here's how:

1. Go to Reports, then Standard Reports.
2. In the Type report name here field, type Open Invoices and run the report.
3. Set the correct report period and click Run report.
4. In the Transaction Type column, locate any transactions listed as a Payment and check if they have a matching open invoice.
   • If a matching invoice exists, continue to Step 2 in this article: Unapplied Cash Payment Income on your Profit and Loss.
   • If no matching invoice exists, skip to Step 3 in the same article.

Once done, run your Profit & Loss report again to confirm those transactions no longer appear under Unapplied Cash Payment Income.

Let us know if you have other concerns or meant something else.

Since all three are from the same month and have the same Capital One description, I’d first check whether they were downloaded twice from the bank feed. Compare the dates and amounts against the checking and credit card registers, not just the statements. If the same payment is already recorded correctly on both sides, these may simply be duplicate bank-feed entries that should be excluded rather than recategorized.