Payments on Invoices or unapplied amounts

Hello there, yorkiemom2. Let's figure out why there's unapplied payment showing using your mobile online application.

There are possible reasons why it happened. It could be that we haven't linked the invoice and payment successfully. Based on the sample screenshot below, it'll still show as zero.

Let's go back and review them. Here's how:

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

For more tips and guides, please refer to this article: Unapplied cash payment income on your profit and loss.

If issue persists, let's clear the app's data to refresh QuickBooks. It could be unusual behavior that needs a fix.

• Android - press the menu at the top right and choose Settings. Then select Refresh Data and choose Yes.
• iOS - select the menu at the top right and then choose Help & Feedback. Then select Refresh Data and Refresh.

Also, we can proceed with uninstalling and reinstalling the app. This way, we'll be able to ensure the QuickBooks components installed are complete and updated.

Here are some articles that helps you manage your customers and income:

• Sales and customers
• Invoices and payments

I'm always here if you have other questions about recording and fixing sales transactions in QuickBooks. Take care and stay safe.

I uninstalled QuickBooks app and reloaded it and it still shows the unapplied payments.  I went to the customer account and all invoices have no option to receive payment.  I attached a screenshot of what it looks like.  I have already done the receive payment button once I initially logged in the payment.  I show NO unapplied cash on my P/L report.  My accountant just filed our 2021 taxes (on an extension for 10-15-2022) and she never mentioned any problems that she saw in our QuickBooks account either or any reports.

Again, I want everyone to know I am very new to QBO.  We used a different method of accounting and just brought everything into to QBO recently for our business.  I must mention I don't use the Quickbooks Bank Deposit Function.  It was suggested to me when I first got using QBO and started asking questions to the forum was how to tie my bank deposit that comes into my bank feed to my customers account open invoices since we don't deposit the money sometimes for a week or more after receipt.  I would enter my open invoices into QBO first.   I was told to go to bank deposit in bank register and edit and add each customer payment to the bank deposit and add a line for each customer to the deposit and select rec'd from whoever the customer was, use A/R as account type and then enter the amount of the payment and in the end it all added up to the actual bank deposit that went to the bank and I would click save.  I would then go back and click Receive Payment for each open invoice.  The payment was always there and matched and zero'd out the account balance for each customer.  Should I be using the QB bank deposit?  If so, when my bank feed comes down with the bank deposit, does it match and not create a duplicate deposit in bank register?  Another thing to note, today, I took my very first credit card payment.  I noticed that customer does not show unapplied payments in his mobile account.  It is currently showing as a deposit on my bank register under account Payments to Deposit.  I am assuming when the funds from the credit card payment come down my bank feed that it will just allow me to match that deposit and not create a duplicate deposit?  I also noticed that the service fee is also showing on my QBO bank register already and I have yet to be charged that from my bank feed as well.  Sorry for all the questions.  Just wanted everyone to know my process.  I am open to a different process if it will achieve the result of not showing the unapplied payments in QB App.

Thank you for the screenshot and for giving more details on what you've done. I'm here to guide you on what you'll have to do, yorkiemom2.

Based on your screenshot, it looks like you're making a payment and deposit at the same time. That's the reason why you're seeing duplicate transactions in your bank. You'll have to make sure that when a customer pays an invoice, you'll either have to record that payment to connect it to the invoice to balance your accounts. Otherwise, if you're using QuickBooks Payments to process payments, we'll handle all the accounting for you. Once a customer makes a payment on the invoice, QuickBooks processes the payment and categorizes it into the correct account.

With regards to your bank deposit question, if you're going to use it or not,  this feature serves two functions. If payments are received into the Undeposited Funds account, you can group payments and deposit them as a single record into an account. Second, the ability to record, items that aren't typically captured on invoices or bills, such as assets and loans. In order for you to understand more about the importance of deposits in QuickBooks, check this article for your guide: Bank Deposits In QuickBooks Online.

Also, when you connect your bank and credit card accounts, QuickBooks automatically downloads the latest transactions. It tries to match with transactions you've already entered in QuickBooks. If it can't find a match, it creates a new transaction record for you. For your bank fee, may I know if it showing in your register and bank feed? If so, you can also match them instead.

Also, there are possible reasons why unapplied cash payment appears on QuickBooks. I've provided the reasons below:
 

• 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.

You'll want to run the Open invoice report to match it with the payment transactions. Here's how:

1. Go to the Reports menu.
2. Search and click Open Invoices report.
3. Set the report period, then select Run report.
4. In the Transaction Type column, locate a transaction listed as a Payment.

If the payment transaction matches an open invoice, you can follow the steps below:

1. Select the Payment date to open.
2. Under Outstanding Transactions, tap to check the box for the open invoice.
3. After that, hit Save and close.

If the payment doesn’t match an open invoice, you’ll need to create the transaction. Follow these steps: 

1. Select + New.
2. Under Customers, select Invoice.
3. Fill out the form with the same customer, amount, and date as the payment.
4. Select Save and close.
5. Go back to the Open Invoices report.
6. Find the unapplied payment, then select the date to open.
7. Under Outstanding Transactions, check the open invoice.
8. Select Save and close.
9. Check your Open invoices report to check if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one. Now run your Profit and Loss report again. You should no longer see the Unapplied cash payment income. 

Aside from that, it's also possible that the product or service item on the invoice is mapped to a bank account type, which causes the amount to go into Unapplied Cash Payment Income. If that's the case, you can double-check the account used for the item. Then, make sure to associate them with an income account type. Here's how:

1. Open the invoice. Then, review all the names of the items used.
2. On the home page, go to Sales.
3. Select the Product and services tab.
4. Look for the item and click Edit under the Action column.
5. In the Income account field, change the account to Income account type.
6. Tick the Also update this account in historical transactions.
7. Then, Save and close to reflect the changes.

If both the invoice and payment are listed in unapplied cash income, and if the items are already mapped correctly to the account, you can create identical entries for the payment. Here's how: 

1. Go to the +New button.
2. Select Invoice under Customers.
3. Fill out the form with the same customer, amount, and date as the payment.
4. Select Save and Close.
5. Go back to the Open Invoices report.
6. Find the unapplied payment, then select the date to open.
7. Under Outstanding Transactions, check the open invoice.
8. Select Save and Close.

Then, run the Open invoices report to see if there are any more transactions listed as a Payment. You can also run the Profit and Loss report to check if the Unapplied cash payment income is no longer showing. 

To learn more about how the account is used to report cash basis from customer payment Unapplied Cash Payment Income? Furthermore, to learn more about how you can handle reports in QuickBooks Online (QBO), I've added these articles for your reference: 

• Learn how to get the most out of your financial reports.
• Memorize reports in QuickBooks Online.

Please let me know if you have further questions about Unapplied Payment. I'll be around to help you. 

I have NO unapplied payments/income showing on any report in QuickBooks. I have NO duplicate payments showing either.  I have no Open Invoices on any report in QuickBooks excepts one I haven't actually received payment on yet.  My bank is connected and I download daily already.  I already had stated above that my P/L report shows NO unapplied payments as well.  Can someone please answer me about should I be doing the Bank Deposit function in QBO?  I don't know about using undeposited funds account because my husband is the employee and he keeps all invoices til the end of two weeks when he is ready to be paid.  I enter the invoices into the QBO.  When the bank deposit transaction comes back thru the bank the next business day, I go into that deposit and add my customers, A/R receivable account and record the amt of their payment and it equals the total amount of the actual bank deposit.  I then go to each invoice and click Receive Payment

and their accounts show paid in full.  It is usually about 10 invoices per pay period.  I never knew I had a problem until I looked in the QuickBooks app and saw they show as unapplied but with zero due for each customer.

I appreciate you for coming back to the thread and adding extra clarification about your concern, yorkiemom2. Let me discuss another instruction on how to fix unapplied payments. Then, ensure you'll be routed to the right support team to further assist you in resolving all unapplied entries that appear on QuickBooks App.

Since you've mentioned that you go into a deposit to add some details and go to each invoice and click Receive Payment, these might cause double transactions. That's the reason unapplied entries appear in your QuickBooks App. To verify and resolve this, I recommend going to the Bank register in the QBO browser and you can see the recorded payments from there. You can delete the deposit amount so the invoice properly links to payment and you're unable to see unapplied payment keeps appearing.

Here's how to go to the Bank register page and delete the entry:

1. Go to Gear icon ⚙ and select Chart of accounts.
2. Find the account you want to review. Then, select View register in the Action column.
3. Select the Filter icon and choose the filters you want to apply. You can use the Find field to search by amount, reference number, or memo.
4. Click Apply.
5. Find the deposit and click it to expand the page. Then, choose Delete. 
6. Click Yes to confirm.

After that, you can now review your transactions in the QuickBooks app to ensure everything is accurate. Moving forward, you can directly record invoice payments as manually and make sure to post them under Undeposited funds. This is to hold the payments so you can combine them on the Deposit screen. Then, make a deposit to put them in the correct account. 

If the issue persists, I suggest contacting our QuickBooks Support Team. They have the tools to pull up your account in a secure environment and they'll be able to investigate why the QuickBooks App shows all unapplied payments.

Lastly, you may refer to this article to see various details on how the Sales page gives you a great at-a-glance view of all the status of sales transactions like open and paid invoices: View sales transactions.

Post a reply below if you have other questions about managing your sales transactions. I'll be sure to get back to you, yorkiemom2. Enjoy the rest of the day!

That doesn't really help me.  I don't have duplicate deposits in my bank register that need deleting and I don't have double transactions either.  Please clarify---Moving Forward I should use the use the Bank Deposit function in QBO, apply it to undeposited income before I take that money to the bank.  Post my invoices as normal.  Then the next business day when the bank deposit imports from my bank thru the bank feed-- It will automatically find the deposit amount of undeposited funds and create a match? Thus there won't be two deposits showing in the bank register in chart of accounts?  OR are you saying to use the Bank Deposit function in QBO and when my bank deposit imports from the bank I should delete it everytime from the bank register?

Thanks for always getting back here with additional details, yorkiemom2.

The Undeposited Funds account is normally used to store funds when receiving payments from invoices or sales receipts. It works like a cash register to save small payments before going to the bank at the end of the day. 

The previous reply suggests receiving the payment directly from the invoice and selecting the Undeposited Funds account moving forward. Then, make a deposit to move funds to the actual bank. Once the payments are saved in your register, QBO will suggest a match once they're downloaded in Online Banking. Once matched, it will clear the transactions for reconciliation and will not create a duplicate in your register. 

You just need to confirm the match by clicking the Confirm button. This makes sure that won't be any duplicate entries. The status of the transactions will also change to Clear so it's easier to reconcile afterwards.

Please see these articles for more details and references:

• Categorize and Match Online Bank Transactions in QuickBooks Online
• What’s the Undeposited Funds Account?
• Deposit Payments Into the Undeposited Funds Account in QuickBooks Online

Let me know if that clarifies how the process of receiving payments. Don't hesitate to post more follow-up questions if you need anything else. 

Thank you JenoP, that clarified it for me.  I still don't understand why everything online in QB looks good and just my QuickBooks App shows the invoices with a zero balance and the payment unapplied.  All my invoices in QB show paid in full, no reports are showing anything hanging out there or anything.  My bank statements balance each month and so on.  I don't even use that App.  I just happened to look through it the other day and saw that.  I guess it will be an unsolved mystery.

UPDATE:  I went back to my QB App and opened up an invoice I had recently entered and received payment for in QBO.  I hit the edit button, clicked on the payment amount without changing it or adding to it and then then clicked done and save and then the unapplied payment disappeared.  Went back to QBO and it is showing in list with the Receive Payment button activated. I hit the received payment button and now it's not showing in the unapplied payment field in the App.  I wonder if this is some glitch in the App.  I swear I marked all those payments as received right after I entered my invoices.  This is several weeks worth of work.  Not just one time at the computer.   I since none of my reports are out of wack and all my balances are zero where they should be I am leaving this one alone.  Anyone have an explanation for that?

I appreciate you for following all the suggested fixes shared by my peers, @yorkiemom2. 

At this point, I'd recommend contacting our Customer Care team so they can take a closer look at the issue on your QuickBooks Apps when everything's working fine on the browser. 

Here's how: 

1. Go to the Help (?) menu, then select Assistant.
2. Select a suggested option, then type a question or topic you need help with, then click still Talk to a human.
3. Select Contact Us and choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

For future reference, check out this article to learn more about the Unapplied Cash Payment in QuickBooks Online.

Let me know if you have any other questions. We're always around to help.