I understand the idea behind the Unapplied Cash Payments Income there are a lot of AR error. However, I have clients that actually take deposits for work not done yet, not even billable yet, technically not income. I'm adjusting Accrual to Cash like in the olden days. Can this be turned off or is it back to manual adjustments and reversing entries.
Even once an invoice is created and the payment applied Q...
Even once an invoice is created and the payment applied QBO will continue to report as unapplied depending on report timeframe. It gets really messed if the income is class tracked and will show as Unassigned class as well. I have yet to find a way to correct this in QBO, even changing invoice date to prior of payment falls short
I have a very similar issue and a workaround. Please let...
I have a very similar issue and a workaround. Please let me know if there is a better fix.
Since I seem to have the correct entries for Invoices, Deposits, and Payments, I am able to customize the report to filter out the "Unapplied Cash Payment Income" account. This then shows me the correct values in both Cash and Accrual reports.
Run a P&L by class
Expand the "Filter" section
Check "Distribution Account"
Scroll down and check the "Select All" box (not the "All" item!)
Search for and uncheck "Unapplied Cash Payment Income"
Click "Run Report"
If anyone knows how to make Invoices show up under the right Class in the first place, that would be great. Here's the full story:
I'm a landlord with a management company and creating invoices for monthly rent payments. Properties are setup as Classes and also as Customer:Customer (Property:Unit). Tenants are Projects, assigned to a Property:Unit. I have created invoices and assigned both a Property:Unit:Tenant and a Class.
I create invoices monthly for each Property:Unit:Tenant and assign the property Class.
When I receive payment from the management company, I record the deposit using the Banking tab. I split the deposit to show the full rent amount received and the fee paid to the management company. Rents are marked with Property:Unit:Tenant and assigned to Accounts Receivable.
Now, I can go to the monthly open Invoice and "Receive Payment". In the payment, I mark the open invoice and mark the deposit in the credits section. This pays the invoice and relates the bank deposit to the invoice for this tenant.
The Problem: Profit & Loss by Class
I now see "Unapplied Cash Payment Income". This is because the Invoices show up in the NOT SPECIFIED column despite having the correct Class on the Invoice. This leaves the Deposits in the correct Class column, making my Income appear double what it is, since, both the Deposits and the invoice Items show up in the correct Class column.
Quickbooks, is this bug?
I'm pretty sure this is a bug in Quickbooks Online. If the Invoices showed up in the correct Class column, then they would offset the Deposits and the Unapplied Cash Payment Income account would have a 0 balance.