UNAPPLIED CASH BILL PAYMENT EXPENSE

Meron GG · ‎April 28, 2020

Hi,

It was deposited in our bank a check with 36$ that is supposed to be paid to a client, thus i recorded it as AP because it was a refund/credit from a dental insurance to pay for a client. Then for some reason this was moved to the healthcare expense account . Which is fine.

However this amount is showing also as UNAPPLIED cash bill payment expense in the accrual basis report.

How can i solve this? Does it mean that this amount is charged twice? What could be the reason?

Thank you

Meron G.

RenjolynC · ‎April 29, 2020

Hi Meron GG,

When you record a bill, there are two accounts affected. For example, you create the bill for the dental insurance, the amount will be a debit on the Dental insurance account and a credit to the Accounts Payable account.

After the bill is paid, you will see it as a negative amount on the Transaction List section. This is because the amount is now debited to your Accounts Payable account and credited to the bank.

You'll want to see the Transaction Journal of each transaction by following these steps:

Go to Expenses > Vendors.
Select the vendor's name and open the negative transaction.
At the bottom, click More and choose Transaction Journal.

You will be routed to a page where you see the accounts affected. To make sure you have an accurate report, you can consult with your accountant.

I'd also like to share this article on how you can record a vendor refund in QuickBooks Online: Enter a refund from a vendor.

You can also share more details about the reports and how did you record the transactions by adding a comment on this thread. I'm just a few clicks away to help you some more. Stay safe.

View solution in original post

MaryLurleenM · ‎April 28, 2020

Hello there, Meron GG,

If the payment is not yet applied to any transaction during the date of the report, it will show as unapplied cash payment.

You'll want to create a Vendor Credit first, then the Bank Deposit (A/P) after so it'll show us refund.

Click + New on the left pane.
Select Vendor credit.
In the Vendor dropdown, select your vendor.
Depending on how you record purchases with this vendor, enter the Category details or Item details. Usually, this is the category, product, or service you’re getting a credit for.
Select Save and close. Then, create the A/P or bank deposit.

Here are some articles for reference:

Let me know if you need anything else, I'm always here to help.

Meron GG · ‎April 29, 2020

Thank you so much for taking time and help me through this. I think i was not clear in my question. I apologize.

The unapplied bill cash payment is a negative amount both in the accrual and cash basis.

The nature of this 36$ is a refund from an Insurance company to the owner of the business. In order to differentiate the Owner's and the Business's cash i recorded this 36$ as an AP to the owner. However, it was opted to move it as a credit to the healthcare expense account.

The after this the unapplied cash bill payment showed up. What i did to remove the -36$ of the unapplied bill cash payment was to create a bill for $ 36 and i selected the unapplied bill cash payment account for this bill created. However, even if the unapplied expense was zeroed out in the accrual basis, it still shows up in the cash basis P&L report.

I wanted to understand better the reason for not doing the same mistake in the future, and also to understand the nature of unapplied bill cash payment.

Also, deleting the unapplied bill cash payment should not be the solution right?

Thank you again.

Meron G.

RenjolynC · ‎April 29, 2020

Hi Meron GG,

When you record a bill, there are two accounts affected. For example, you create the bill for the dental insurance, the amount will be a debit on the Dental insurance account and a credit to the Accounts Payable account.

After the bill is paid, you will see it as a negative amount on the Transaction List section. This is because the amount is now debited to your Accounts Payable account and credited to the bank.

You'll want to see the Transaction Journal of each transaction by following these steps:

Go to Expenses > Vendors.
Select the vendor's name and open the negative transaction.
At the bottom, click More and choose Transaction Journal.

You will be routed to a page where you see the accounts affected. To make sure you have an accurate report, you can consult with your accountant.

I'd also like to share this article on how you can record a vendor refund in QuickBooks Online: Enter a refund from a vendor.

You can also share more details about the reports and how did you record the transactions by adding a comment on this thread. I'm just a few clicks away to help you some more. Stay safe.

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UNAPPLIED CASH BILL PAYMENT EXPENSE