How do I resolve "Unapplied Cash Payment Income"?

Resolving Unapplied cash payment income is easy peasy, @DCS.

Let me first provide the possible reasons why unapplied cash payment income appears on your report. Here's a list of them:

• A customer prepaid you and recorded the payment before creating the sales form (invoice or sales receipt).
• You entered payments without matching them to sales forms.

To get this resolved, let's run the Open Invoices report to check if the payment matches the open invoice or not. Here's how:

1. Sign in to your QuickBooks Online account.
2. Click Reports from the left menu.
3. Search for the Open Invoices report.
4. Set the date in the Report period drop-down, then click Run report.
5. In the Transaction Type column, locate a transaction listed as a Payment.

If the payment transaction matches an open invoice, let's review it from the Outstanding Transactions section.

1. From the report, select the Payment date to open.
2. Under Outstanding Transactions, check the open invoice.
3. Select Save and close.

However, if the payment doesn't match an open invoice, you'll need to create an invoice transaction. Let me guide you how.

1. Click the + New button, then select Invoice.
2. Fill out the form with the same customer, amount, and date as the payment.
3. Select Save and Close.
4. Open the Open Invoices report again.
5. Find the unapplied payment, then select the date to open.
6. Under Outstanding Transactions, check the open invoice.
7. Click Save and Close.

After following the detailed steps, you should no longer see the unapplied cash payment income. For more guidance, feel free to check out this article: Unapplied cash payment income on your profit and loss.

Just in case you'll see Unapplied Cash Bill Payment Expense on your report in the future, you might want to read this article here to learn how to fix it.

Please let me know if you need clarification about the process of resolving unapplied cash payment income. I'll be standing by for your response. Have a great day.

Hi there, Nancy132. 

I'm here to help you match the deposit to an invoice in QuickBooks Online (QBO).

If you've received the payment as a deposit, you can edit it to link with your customer's invoice.  Here's how:

1. Go to the Accounting menu.
2. Choose the Chart of Accounts.
3. Locate the account you deposited the payment to, and then click View Register.
4. Find and choose the correct deposit and select Edit.
5. On the Bank Deposit screen, scroll down to Add funds to this deposit, then find the fund you need to edit.
6. In the Received From column, select the appropriate customer's name.
7. In the Account column, search and choose Accounts Receivable then tick Save and Close.

Once done, apply it as a credit to the invoice:

1. Go to the +New button and pick Receive Payment.
2. Select the Customer's name. You should now see all open customer invoices and outstanding credits.
3. Add the Payment date.
4. Under Outstanding Transactions, choose the Invoice you need to mark as paid.
5. Under Credits, select the Deposit entry, then hit Save and Close.

For more information, feel free to check out these articles: 

• How to Link a Deposit to an Invoice?
• How to Record a Customer Payment?

If you need further assistance linking the deposit to your invoice, please feel free to post a reply below. I'm always here to help. Have a good one.