Has QBO already fixed the unapplied Cash Payment Income-register-automatic, when we are using classes?

Hi @qbo2,

I am working on your other post https://quickbooks.intuit.com/community/Reports-and-accounting/When-I-apply-a-deposit-to-an-invoice-... which I believe is a duplicate.

Hope you can respond to me on that thread so we can work on this together. Thanks!

Hi!!

Yes, I did write my question again in a different way, but still haven't get an answer that fix the problem... thanks

Hi, I have cash payments that are considered pre-payments, without an invoice to credit them to.  They appear in the customer's account perfectly, but do not appear in our cash basis P&L report.  Shouldn't they appear as an "unapplied cash payment income" on the report?  They do not.  My board expects to see them in a cash basis report as part of income, but since there is no invoice reference on an uncredited amount, they seem not to exist on the P&L.  The notes on "unapplied cash payment income" says it may appear.  Other users seem to want to clear it to make it go away, while I would be happy to see it appear on the report.  Thanks.

Thanks for joining this thread, @SelmaCondo.

I can share the reason why your customer credits are not appearing on the cash basis P&L report.

Recording the pre-payments in QuickBooks requires you to tag it under a liability account. Pre-payments are not showing on the P&L report because even though they're already entered, they are not yet considered income until they are applied to a sales transaction.

The pre-payments only affects your Balance Sheet report but not the P&L, SelmaCondo.

That's it. I'm still here to help you more if you have other questions about reports. Just leave a comment or mention my name. Have a good one.

Hi, thanks for your message.

What you wrote is totally right. But my situation was a mistake I was making.

I have already fixed this, I did wrote the answer in another "Question" I posted. My mistake was that I've been assigning "Classes" to the account "Accounts Receivable", and I shouldn't.

And the problem show only when I print de P&L report "By Classes", because it split the sum of "0" in the account "Unapplied Cash Payment Income", half under the class I used and half under de class "No Specified"  When I erased those classes assigned to the "Account Receivable", my problem was fixed !!!

This also works for the account "Accounts Payable", I had to do the same.

Thanks again.

That's music to our ears, @qbo2.

I'm glad to hear that everything works well on  your end. Also, I appreciate you for sharing the steps that fixed your issue. This will help a lot of customers who are also having the same issue.

For additional insights, you may check out the following articles:

• Why aren't classes reporting for certain transactions on my report?
• How to set up and use class and location tracking

You can post anytime here in the Community if you have other questions or want to share your best practices using the product. I'm always here to help you assigning classes to your transactions.

Sorry to revisit an old thread, however I am still looking for solutions to my post: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/unapplied-cash-payment-inco...

The solution mentioned above doesn't work for me. When I open the "Not Specified Class" on the Transactions page of a P&L by Class cash basis report, I can see that the amount has a Class specified on the invoice already-- so that's not causing the issue. My invoice has 4 lines and each line has the same Class specified. Why isn't the Class on the Invoice being picked up by the Unapplied Cash Payment Income account?

Let me elaborate to you why you're not seeing the class in your Profit and Loss report, kcpm9.

Unapplied cash payment income appears on your report if:

• A customer prepaid and you recorded the payment before creating the sales form (invoice or sales receipt).
• You entered payments without matching them to sales forms.

To help you resolve this, you can follow the detailed steps found in this article so you'll no longer see the Unapplied cash payment income: Unapplied Cash Payment Income On Your Profit and Loss.

Also, since you're unable to add Class on the Receive Payment page, that's why the Unapplied Cash Payment Income account is classified under Not Specified. Unless the payment was a bank deposit type of transaction: Record And Make Bank Deposit In QuickBooks Online.

Fill me in if you need further assistance. I'll be here to help.

Thanks Maria. I am still having trouble as I need to be able to report on Class for Payments for cash basis reporting. I looked at the Bank Deposit feature you mentioned and ran a test, but assigning Class in the deposit area still did not result in assignment of Class to a Payment/Deposit (such that I still see Unapplied Cash Payment Income balance on "Not Specified" Class even though I am specifying a class on the Deposit as well as the Invoice, but cannot directly on the Payment). Please refer to my earlier posting which is still unsolved: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/unapplied-cash-payment-inco...

Any workaround would be greatly appreciated. 

Thank you for sharing the previous thread, kcpm9.

The option to assign a class on payments is unavailable. This is the reason why it will show under Not Specified.

As a workaround, you can export the report to Excel, and manually add the class for the payment transactions. Here's how:

1. On the Reports page, click the export icon.
2. Select Export to Excel.
3. Save the file somewhere you can easily find, like your Downloads folder or your desktop.

Let me know if you have other concerns.

I'm having a similar but slightly different problem. We do sales and mark them all under a certain class, then run a report on that class with all dates. On accrual it is coming out as expected, on cash it is showing negative unapplied cash income (again this is with all date). It appears to all be refunds from credit memos. They are not appearing on my open invoices account. What do I need to do to get these "connected" properly in order to clean up the account? They are real credit memos and real checks but don't seem to be connecting to the invoices? or something. Credit memo's are issued under the customer name, the refund checks are all appearing as accounts receivable and show the correct class.

Hi there, @whizbank.

Let me provide some information about the unapplied cash payment income on a report and help you from there.

Once your sales report is on a cash basis, the unapplied cash payment income account is automatically created by Quickbooks for cash-basis reporting and cannot be deleted or changed. The IRS requires this account for proper reporting of "Constructive Receipt Income."

Since you have a negative amount showing on the account, you'll need to apply the payment to an invoice dated prior to the date of the payment. 

Also, the product or service item on the invoice may be mapped to a bank account type, which will cause the amount to go into Unapplied Cash Payment Income, without actual payment being received. You'll want to make sure the product or service is mapped to an income account type to prevent this from happening.

I'm adding this article for more information: What's Unapplied Cash Payment?

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back. Have a great day!

FYI... I was able to workaround my issue (not being able to see Unapplied Cash Pymts by Class) by selectively filtering my reports at a lower level (ie Customer). For example, selecting the report to run by filtering for all the Customers under my desired Class. I realize this might be painful if I frequently added/changed Customers within a Class or had tons of Customers to categorize, but it worked for my cash basis reporting purposes.

Thanks for that thought. I have hundreds of customers that buy 1x year at a conference, so they may be in plenty of classes. But it might work on some smaller clients that I have. Thanks for responding.

If you read my question carefully, you will see that I am talking about refund checks appearing in the unapplied income category, as if they are not being connected to the invoice.  I have already read all of the help articles and they are not useful at all in this instance. And, since the report is using all dates, in theory, it should have cleared itself out.

So, if you have something more helpful to add I would greatly appreciate it. I realize this is unusual and not something that is easily explained.  Thanks