What to do if you see unapplied cash bill payment expense on your profit and loss

When you run a Profit and Loss report in QuickBooks Online (using the cash method), an account called Unapplied Cash Bill Payment Expense shows. This account shows up when:

• A bill payment for a vendor is recorded before entering the bills
• If you entered bill payments without matching them to bills

Follow these steps for when you see the Unapplied Cash Bill Payment Expense on your Profit and Loss report:

1. With the Profit and Loss report open, look for the section Unapplied Cash Bill Payment Expense.
2. Select the total amount. Take note of the vendor and amount for each bill payment in the list.
3. Select + New.
4. Select Pay bills.
5. If you see bills matching the bill payments in the list, select the checkboxes next to them, then Save.
6. If you don’t see a matching bill for one of your bill payments, create it:
   • Select + New.
   • Select Bill.
   • Fill out the form with the same vendor, amount, and date as the bill payment.
   • Select Save.
7. Repeat the steps for any bill payments left on the list.

Run your Profit and Loss report again. The Unapplied Cash Bill Payment Expense account should be removed from your report.

Now you know what to do when you see the Unapplied Cash Bill Payment Expense on your Profit and Loss report.