Unapplied cash payments

I'd gladly assist you with clearing the unapplied payments in QuickBooks Online (QBO), @Salessio0564.
 

That'll happen if your report is on a cash basis and you've already received the payment before the invoice. We can run an open invoice report to see if the payment matches it.

Here's how: 

1. Open your QBO account.
2. Go to the Reports.
3. Enter the Open Invoices in the search field.
4. Set the report period, then click Run report.
5. Locate a transaction listed as Payment in the Transaction type column.

Once done, and if it matches with an open invoice, follow these steps:

1. Select the Payment date to open.
2. Check the open invoice under Outstanding Transactions.
3. Once done, click Save and close.

On the other hand, if it doesn't match with an open invoice, we'll have to create a new transaction. 

Here's how: 

1. Go to the +New icon, locate Customers, and select Invoice.
2. Fill out the necessary details with the same customer, amount, and date as the payment.
3. Once done, click Save and close.
4. Go to your Open Invoices report, find the unapplied payment, and select the date to open.
5. Check the open invoice under Outstanding Transaction.
6. Once done, hit Save and close.

Furthermore, you'll want to refer to this article and learn how to personalize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Please let me know if you have further questions regarding the unapplied payments in QBO. I'm always here to assist. It's great to have you here in the Community.

Thank you for responding. Since the payment happened before the invoice date under cash basis, how do I clear  these payments. The payment was received in prior year, but invoiced in current year. 

Let me chime in and help you close your invoice payment for the prior year in QuickBooks Online (QBO), @Salessio0564.

When a payment is received before the invoice date, it's important to adhere to cash-based accounting principles, which state that income should only be recognized upon receipt of cash. Thus, it’s crucial to record the payment accurately to reflect your financial standings correctly.

To resolve this scenario in QBO, you can utilize the Receive payment feature, which allows you to document the payment received even if it predates the invoice. Here’s how to effectively navigate this process:

1. Click the +New button, then Receive payment.
2. Choose the Customer who made the payment.
3. Set the Date when the invoice was issued.
4. Select the Payment method and indicate the account to which the payment should be Deposited To.
5. In the Outstanding Transactions section, select the checkbox for the invoice you're recording the payment for.
6. Provide the Reference no. and Memo if necessary.
7. Once done, hit Save and close.
   

For future reference, here's a guide on generating reports to obtain valuable data about your business: Run reports.

I'm here to help with any further questions you have about managing your invoices in QuickBooks. Please don't hesitate to ask if you need assistance. Have a wonderful day!