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Vendor Credit & Unapplied Cash Payment Expense



I applied a vendor credit from April to a bill in October.  The exact amount of vendor credit is now showing up in my Statement of Activity as an Unapplied Cash Payment Expense. 


I understand the idea that the date of the payment needs to be on or after the date of the invoice.  I'm pretty sure that isn't the problem here. There must be something I'm missing.


I've included a screen shot of my bill payment for reference. 


Thank you in advance for your help!





1 Comment 1
QuickBooks Team

Vendor Credit & Unapplied Cash Payment Expense

I'll explain why you can still see it, Rachelle.


The vendor credit will show as an Unapplied Cash Payment Expense in the Statement of Activity since it was done before the bill was made.


Once applied to the bill, another line for Unapplied Cash Payment will be added as an offsetting entry. It does not mean that it's adding an entry. Instead, it will only zero out the amount in the Unapplied Cash Payment Expense account.


Let me share these articles for more details:


Add a reply below or visit us again if you have other questions when applying credits to your bill. 


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