Intercompany payables & receivables are showing up as "Cash unapplied" when I view financials via cash basis. Is there any way to make this go away w/o switching accrual?

Good day, userkassandra-torres.

Yes, unapplied cash payments shows if your report is on a cash basis accounting. It's automatically created by Quickbooks Online for cash-basis reporting and cannot be deleted or changed. They usually show up when:

• Customer prepayments are recorded before creating invoices.
• Payments are entered without matching to a sales form or bills.

Please see these articles on how you can resolve the issue:

• What's Unapplied Cash Payment?
• Unapplied Cash Payment Income On Your Profit And Loss
• What To Do If You See Unapplied Cash Bill Payment Expense On Your Profit And Loss

Reach out to us again or add a reply below if you need anything else. 

Hi JenoP,

Just so I'm clear, the only way to get rid of Cash Unapplied when running a P&L on Cash Basis accounting is to create a bill and apply it against the bill?

Thank you,

Kassandra

I appreciate you getting back to us, Kassandra.

Yes, you're correct. Creating a bill and matching it to the bill payment is the solution to get rid of the unapplied cash bill payments. Here's how:

1. Click the + New button, then select Pay bills.
2. If you see bills matching the bill payments in the list, select the checkboxes next to them, then Save.
3. If you don’t see a matching bill for one of your bill payments, you can create one:

• • Click + New, then select Bill.
  • Fill out the necessary information.
  • Select Save.

       4. Repeat the steps for any bill payments left on the list.

I'm adding this article for more details: What to do if you see unapplied cash bill payment expense on your profit and loss.

However, if you're trying to remove the unapplied cash payment income on your Profit and Loss report, you can follow the step by step process below:

Step 1: Run the Open Invoices report

Step 2: If the Payment transaction matches an open invoice

Step 3: If the Payment transaction doesn’t match an open invoice

For the detailed steps and information on every step, feel free to check out this article: Unapplied cash payment income on your profit and loss.

Please touch base with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day ahead.