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Level 2

Unapplied cash payment expense

What does it imply a negative unapplied cash bill payment expense? I have a negative amount of unapplied cash bill payment expenses.

How can I clear this from the cash basis P&L?

Thank you

Meron G

Solved
Best answer 12-30-2019

Best Answers
Highlighted
Moderator

Unapplied cash payment expense

Hey there, @Meron GG. I'm happy to help you with your Unapplied Cash Payments.

 

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 cannot be deleted or changed.

 

Unapplied Cash Payment Expense is equivalent to cash payment income but on the expense side. It's used to report the Cash Basis expense from vendor/vendor payment checks that you've sent but not yet applied to a vendor/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. Take note of the vendor and amount for each Bill Payment in the list of your P&L.
  2. Click the Create icon ⨁, then Pay bills.
  3. If you see bills matching the Bill Payments in the list, check the checkboxes next to them, then Save.
  4. If you don’t see a matching bill for one of your bill payments, create it:
    • Hit the Create icon ⨁.
    • Click Bill. Fill out the form with the same vendor, amount, and date as the bill payment.
    • Select Save.
  5. Repeat the steps for any bill payments left on the list.

Wishing you and your business continued success in all that you do and looking forward to hearing from you again.

View solution in original post

9 Comments
Highlighted
Moderator

Unapplied cash payment expense

Hey there, @Meron GG. I'm happy to help you with your Unapplied Cash Payments.

 

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 cannot be deleted or changed.

 

Unapplied Cash Payment Expense is equivalent to cash payment income but on the expense side. It's used to report the Cash Basis expense from vendor/vendor payment checks that you've sent but not yet applied to a vendor/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. Take note of the vendor and amount for each Bill Payment in the list of your P&L.
  2. Click the Create icon ⨁, then Pay bills.
  3. If you see bills matching the Bill Payments in the list, check the checkboxes next to them, then Save.
  4. If you don’t see a matching bill for one of your bill payments, create it:
    • Hit the Create icon ⨁.
    • Click Bill. Fill out the form with the same vendor, amount, and date as the bill payment.
    • Select Save.
  5. Repeat the steps for any bill payments left on the list.

Wishing you and your business continued success in all that you do and looking forward to hearing from you again.

View solution in original post

Highlighted
Level 1

Unapplied cash payment expense

We have a similar issue with Unapplied Cash Payment Expense account but related to credit card bills.

We enter credit card transactions using the register then enter bills each month. The register is reconciled monthly basis. Partial payments are made several times a month which we apply to monthly bills. When we run P&L in cash basis a credit balance shows up as Unapplied Cash Payment Expense account. Credit card vendor is the only vendor that shows up in UCPE account. We made sure all the payments are applied to monthly bills and are dated correctly. All the payments were applied to prior dated bills.  How do we resolve this issue? 

Highlighted
Moderator

Unapplied cash payment expense

Hello there, @eag3.

 

You're on the right track in recording the credit card transactions and bills in QuickBooks.

 

The Profit and Loss include accounts based on the filters selected on the report, like the date. If the date selected is when the payments weren't applied to the bill yet, the Unapplied Cash Payment Expense account shows on the report. 

 

To check, follow the steps below:

  1. On the left pane, select Reports.
  2. In the Find report by name field, enter and select Profit and Loss.
  3. Change the Report period or change the date manually. 
  4. Hit Run report.

If the filtering of the report is correct, perform some browser-related troubleshooting to see if the reason behind this is local internet files. Sometimes the cache stores up in the system and causes issues in your web pages. Here’s an article to help you with the process: Delete or Disable cache and temporary internet files in your web browser.

 

For additional information, take a look at this article for more ways to modify the report, as well as how to save and share it: Customize your Profit and Loss report.

 

I'll be glad to provide further assistance should you have any questions. Wishing you and your business continued success.

Highlighted
Level 1

Unapplied cash payment expense

Hello MaryGrace,

We need cash basis report for 12/31/19 and the report period is selected is correct. 

Also followed your instructions on deleting cashes but had no luck.  

Not much luck with modifying the reports either. Can you think of anything else would can try at this point? 

I reach appreciate your input.

Thank you so much!

Highlighted
QuickBooks Team

Unapplied cash payment expense

Hello @eag3,

 

A negative amount of unapplied cash bill payment expense means you have an amount or unapplied refund in your A/P account. In your case, you'll want to check if there are other transactions or a bill that you'll need to match or apply the payment to.

 

To do that, just click the amount in your Profit and Loss report to see the Transaction Report. This way, you can review the unapplied transactions. After that, run your report again.

 

I'm adding these articles to guide you with the details about:

 

Please know that I'll be here if you have other questions. Just click the Reply button anytime. Thanks for posting and have a lovely day ahead.

Highlighted
Level 1

Unapplied cash payment expense

Hi Shiella, 

Thank you for your prompt response. We reviewed Transaction Report for the entire year and only vendor showing is the credit card vendor. Since the grand total amount billed is greater than the payments applied, it shows credit balance at the end of the year.  In other words, there is balance due on the credit card. If we run P & L by accrual basis, the balance on AP agrees with Dec 2019 credit card statement.  This amount, however is not the amount in Unapplied Cash Payment Expense on cash basis P &L.  We thought of moving balance out of UCPE to liability account but that is not the solution.  Perhaps we shouldn't be entering monthly CC billls through AP in QBO?

I would appreciate any help.

 

 

Highlighted
QuickBooks Team

Unapplied cash payment expense

Hello eag3,

 

To check this further, it requires accessing your account. Since Community is unable to modify and check customer account, I recommend contacting our Phone care support.

 

They have tools that can pull up an account in a secure environment to review the details. Our Phone support can also assist you with possible resolutions.

 

Here’s how:

 

  1. At the top, select Help (?).
  2. Click Contact Us.
  3. Enter your concern then hit Let’s talk.
  4. Choose to Get a callback.

 

To make sure you received the assistance immediately, I added an article so you can contact them to their available hours: Support hours and types.

 

Also, you can visit this link for your future reference to learn more about managing QuickBooks accounts: Help articles.

 

Come back if you need more help.

Highlighted
Level 1

Unapplied cash payment expense

The problem with unapplied cash payments that are directly related to credit cards is accounting related and QBks Desktop handles it correctly while Online seems to have trouble with it.  A cash basis customer is allowed by the IRS to go ahead and expense credit card purchases made and used as of 12/31 even if the payment has not been made on the card.  Credit Card Payable is allowed to be carried by a Cash Basis entity.  In Desktop if you enter the Credit Card expenses in a Register (and you have Cash Basis reporting selected) the expenses will be counted for the year they are dated and if the balance is not paid in full the credit card amount due as of 12/31 will show as Credit Card Payable.  In Qkbs Online I have not been able to replicate this.  If I do not set up a Bill to pay the credit card (entries have been done in the credit card register) with a date on or before year-end then the expenses do not post to the P&L.  This creates the Unapplied Cash Payments which are actually the credit card payable balances that should be on the Balance Sheet.  Any help with this would be appreciated.

Highlighted
QuickBooks Team

Unapplied cash payment expense

Hi Hauser356,


Thank you for posting in the Community.


At the moment, we’re unable to change how QuickBooks Online reports the credit card balances. I’ll share your feedback about this with our product engineers, so they review this part.

 

On the other hand, you can check out our Blogs to stay updated with the current changes in QuickBooks.


If you have other observations to share, feel free to post them in the Community.

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