How I can match unapplied payment and invoices?

There are a few possible reasons why this might have happened. It could be that the invoice and payment weren't successfully linked in QuickBooks Online (QBO), Diego. Here’s an additional information can try, along with some further actions.

If you report on a cash basis, you may see two accounts for unapplied cash payments. These accounts are automatically created by QBO for cash-basis reporting and can't be deleted or changed. Unapplied cash payment income may appear on your report if:

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

I can share some steps to help you correct the unapplied payments. You’ll need to link the deposits to your open invoices in the system. This ensures your records are accurate and helps avoid errors when reconciling your accounts. Ensure the date is set in 2025 so it doesn't affect the 2024 data. Here's how:

1. Log in to a web browser.
2. Open the Invoice, click Receive payment.
3. Make sure to tick the Unapplied Payment under Credits and the invoice under Outstanding Transactions.
4. Click Save and close to reflect the changes.

Then, you can match this if the payment transaction is already downloaded on the Banking page. You can refer to the steps below.

1. Go to the Banking menu and select the bank where your customer's payment has been deposited.
2. Find the transaction with the correct details. QuickBooks will automatically detect the transactions that matched with the downloaded ones from the bank. A green mark will show on the transaction.
3. Click the transaction and verify the details.
4. Select the Match button.

Moreover, you can check these resources for additional reference about unapplied payments:

• What's Unapplied Cash Payment?
• Unapplied cash payment income on your profit and loss
• What to do if you see unapplied cash bill payment expense on your profit and loss

Allow me to share these articles in case you need more guidance and resources when working with your banking transactions: 

• Add purchase orders to expenses, bills, or checks in QuickBooks Online
• Enter and manage bills and bill payments in QuickBooks Online

With a Payments account and QuickBooks Checking, your payments and spending are automatically synced to keep your books up to date. Whether you need guidance from bookkeeping experts, want your books organized for tax time, or prefer a dedicated bookkeeper to handle everything, Live Experts has you covered.

Please let me know if you have any further questions about unapplied payments in QBO. I'll be around to help you.

Hello, Ms. North

Thank you for your kind feed back.

For the further information, could you let me know below questions?

1. We matched unapplied payment and invoices with the date of Jan, 31th, 2025 already

    But at that time, matching was affected to the balance sheet and profit and lost in 2024.

    (We only matched unapplied payment and invoices, not matched banking transaction)

    Even though, if we match those in receiving payment and match in banking transaction, it will be ok?

2. If we make a error during banking transaction process, could you let me know the process how we can disassociate the matching in banking transaction?

Thanks for seeking clarification about handling unallocated payments in QuickBooks Online, Diego. I'm here to provide some insight and answer your follow-up questions.

Please note that even if the payment date is set to 2025, your financial reports for last year will be affected because the date of the original transactions is 2024.

Given the potential effects these changes may have on your financial reporting, we strongly recommend consulting with your accountant. They can offer tailored guidance to ensure proper handling of these transactions.

Let me also share these steps on how to remove the attachment between the invoice and unapplied payments:

1. Open the invoice.
2. Scroll down to the Invoice total section and click the Payment on link.
3. Go to the Outstanding transactions section, then uncheck the invoice in the Receive Payment window.
4. Click Save and close.

You can also follow these steps if you're referring to unmatching online banking transactions:

1. Go to the Bank transactions section.
2. Proceed to the Categorized tab.
3. Look for the transaction that you want to unmatch.
4. Click Undo.

Here's an article about this process for more details: Unmatch downloaded bank transactions or move them to another account.

Let me also share these articles for additional reference materials when working with your bank transactions in QBO:

•  Exclude a bank transaction you downloaded into QuickBooks Online
• Undo transactions from reconciliations in QuickBooks Online

Don't hesitate to reach out again for further help with the Online Banking functions or financial data management within QuickBooks Online. We're here to assist you whenever you need it.