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Level 2

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Unapplied Cash Bill Payment Expense problem, I did a vendor credit and have deposit and expense to apply so vendor is zero. (the way QuickBooks online said to process) But now I have in P&L a zero amount but does show up on report (cash basis). How can I clear that amount  so does not show up and apply the credit? I have a few old (prior year credits) that I need to apply but not sure how to apply old vendor credits. Can you help me with this. Thanks

SF22

Solved
Best answer April 16, 2019

Best Answers
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QuickBooks Team

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Hi there, sf22.

 

You aren't doing wrong. I'd like to add some details in the article you've read.

 

The Unapplied Cash Bill Payment Expense account will be removed if you opt to only show the non-zero accounts. Just click the Show non-zero or active only drop-down on the said report, then select Non-zero under Rows.

 

Feel free to let us know if you have other questions.

View solution in original post

5 Comments 5
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QuickBooks Team

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Hi @sf22,

 

Let’s perform some steps to apply the vendor credit to your expense so it won’t show under Unapplied Cash Bill Payment Expense.

 

First, you would need to create a bill that matches your vendor credit.

  1. Select the Plus icon (+) on the Toolbar, then select Bill.
  2. Fill out the form with the same vendor, amount, and date as the vendor credit.
  3. Select Save.

Next, pay the bill using the vendor credit.

  1. Select the Plus Icon (+), then Expense.
  2. In the Choose a payee drop-down, select the same vendor name.
  3. Leave the Reference / Check #, Date, Amount and Memo fields blank.
  4. From the Add to Expense section, select Add for the outstanding bill and vendor credit.
  5. Select Save and close.

Please check this helpful articles for future reference:

Please don’t hesitate to post again if you have other concerns.

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Level 2

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Thank you but still have the unapplied cash bill payment show up on P&L as zero, do not go away. I did bank deposit, vendor credit then expense so zero's out but still show on report? I cannot seem to get this to be gone. From what I read I should not see this account under cash basis at all. I must be doing something wrong but cannot seem to figure it out?

SF22

Highlighted
QuickBooks Team

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Hi there, sf22.

 

You aren't doing wrong. I'd like to add some details in the article you've read.

 

The Unapplied Cash Bill Payment Expense account will be removed if you opt to only show the non-zero accounts. Just click the Show non-zero or active only drop-down on the said report, then select Non-zero under Rows.

 

Feel free to let us know if you have other questions.

View solution in original post

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Level 2

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Hi JessT,

I have the same issue. After i created a bill to zero out the unapplied bill payment expense in the accrual basis of P&L, it still appears in the cash basis report. I tried to understand your guidance but i think i am not able. Can you please walk me through how can i zero out the unapplied expense that appears in the cash basis as well.

Thank you

Meron

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Moderator

Unapplied Cash Bill Payment Expense problem - Vendor Credits

Welcome to the Community, Meron GG.

 

I do appreciate the steps you've performed to zero out your Unapplied Bill Expense in the accrual accounting method of the P&L. However, if you report on a cash basis, you may see two accounts for unapplied cash payments. These accounts are automatically created by QuickBooks Online for cash basis reporting and we're unable to delete or change it. These are required by IRS for proper reporting of "Constructive Receipt Income".

 

For Unapplied Cash Bill Payment Expense this is equivalent to cash payment income but on the expense side. It's used to report Cash Basis expense from vendor/vendor payment checks that you've sent but not yet applied to a vendor bill. This can also occur in the case that a bill is created for a credit card account balance. You'll never use this directly on a purchase or sales form. 

 

If an incorrect amount is showing in this account, you'll need to apply the bill payment to a bill that is dated before the bill payment. Here's how:

 

  1. Go to the + New button and select Pay bills.
  2. Check the boxes for the bills matching the bill payments on the list.
  3. Click Save.

If you don't see a matching bill for one of your bill payments, create it.

 

  1. Click the +New button and select Bill.
  2. Fill out the form with the same vendor, amount, and date as the bill payment.
  3. Click Save.

If there's anything else you need, please hit the Reply button. I'll be right here to help.

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