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Level 3

Desktop Pro to QBO Conversion issues with Unapplied Cash Payment Income & Unapplied Cash Bill Payment Expense

At the beginning of the year, I converted from Desktop to QBO.  Everything seemed to transfer fine.  My P&Ls and Balance Sheets for all dates matched.  The problem is when I run a Cash basis P&L for last year, the Unapplied Cash Payment Income & Unapplied Cash Bill Payment Expense lines show up causing the reports to be off.  I know the UCPI is because of JE made in 2018 on desktop to correct negative a/r balances from previous years.  In desktop, I applied these JEs to the proper payments. In Online, it shows them applied, yet they are still on the report as unapplied.  How do I correct these to get them off the P & L?  Following the directions given on the UCPI and UCBPE thread does not correct the problem because they are not showing as being open anywhere.

3 Comments
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Moderator

Desktop Pro to QBO Conversion issues with Unapplied Cash Payment Income & Unapplied Cash Bill Payment Expense

Hello, tlh121018.

You came to the right place for help with QuickBooks. I'd be happy to help you correct these unapplied payments in QuickBooks Online.

 

In order to correct your P&L, you'll need to create an invoice, create a journal entry for the payment, and apply the journal entry to the invoice.

 

To create an invoice:

 

  1. Select the Plus icon (+) on the upper right corner.
  2. Under Customers, choose Invoice.
  3. Select the name of the Customer from the drop-down list and enter or verify customer information.
  4. Fill out the necessary information.
  5. Click Save and close.

Create a journal entry:

 

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Other, select Journal Entry.
  3. Enter the transaction date in the Journal date field.
  4. On the first distribution line, in the Accounts field, enter any account listed in the Chart of Accounts.
  5. Enter the transaction amount in the Debits or Credits column.
  6. Tip: The first line is typically a Debit. Once you save the transaction, you can find it in the Recent Transactions report to see whether the Debit entry had the desired effect.
  7. The Description you enter appears on reports that display transaction details.
  8. Specify a customer, vendor/vendor, or employee associated with the line, if any, in the Name field.
  9. Continue to enter distribution lines until the sum of the Debit column entries equals the sum of the Credit column entries.
  10. Select Save.

If you're uncertain what accounts to credit and debit when creating a transaction, it would be best to consult your accountant for guidance.

 

Apply the journal entry to the invoice:

 

  1. Select the Plus icon (+) on the upper right corner.
  2. Under Customers, click Receive Payment.
  3. Select the name of the Customer.
  4. Under Outstanding Transactions, locate and select the Journal Entry (see screenshot below).
  5. Click Save and new or Save and close.

You may find these articles helpful:

How to create a journal entry.

How to record a customer payment.

Let me know how it goes, I'll be here if you need anything else. Have a good one.

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Level 3

Desktop Pro to QBO Conversion issues with Unapplied Cash Payment Income & Unapplied Cash Bill Payment Expense

Thank you for your response, RoseMarjorieA!

I followed your steps, however, it resulted in no effect on the Unapplied Cash Payment Income.  My issue is still unresolved.  Should I use Unapplied Cash Payment Income as the credit in the JE?  I used the opposite of what the invoice would have created because I don't want my income or my a/r #'s to change.

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QuickBooks Team

Desktop Pro to QBO Conversion issues with Unapplied Cash Payment Income & Unapplied Cash Bill Payment Expense

Hello tlh121018,

 

In QuickBooks Desktop you've applied the JE's to the payments and it's reflected in QuickBooks Online, but the payments still are not applied to any invoices. This is why they are accumulated in the UCPI account in your cash-basis P & L report. The same thing goes for the UCBPE.

 

I know that you made the JE's to correct your A/R in 2018, but it's best if we can have them reviewed with an accountant. That way, we can make sure that your P & L report is correct.

 

Please get in touch with us again if you have other questions.

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