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darshanpatel82
Level 1

Unapplied Cash Payment Income

Hi, 

I am running quick book profit & loss account on Cash basis and noticed that there is an amount sitting in the Unapplied Cash Payment Income eventhough i have not created this account and not entered anything. Can any one help me to get rid of this.

Normally i book sales from Z report through Journal Entry and book EFTPOS payment against the account in Balance sheet. I don't understand this things. 

It shows now 1000 transaction in that account. 

 

Thank you 

Darshan Patel 

Solved
Best answer January 22, 2020

Best Answers
AlcaeusF
Moderator

Unapplied Cash Payment Income

Welcome aboard to the Community, @Vanna.

 

When recording transactions in the QuickBooks system, I suggest you mirror them to the actual date when you create sales transactions and payments.

 

There are only two reasons why transactions are showing in the Unapplied Cash Payment Income account. It's either you record the payment before creating the sales form, or they weren't matched at all.

 

You can start with running the Open Invoices report to verify transactions showing as not yet paid. Here's how:

 

  1. Log into your QuickBooks account.
  2. Select Reports.
  3. In the Find report by name field, enter Open Invoices.
  4. Set the report period, then select Run report.
  5. In the Transaction Type column, locate a transaction listed as a Payment.

For future reference, visit the Unapplied cash payment income on your profit and loss article. You can follow the detailed instruction in the order shown to get this fixed.

 

If there’s anything else I can help you find in QBO, post a comment below. I’m here ready to assist further. Have a good one.

View solution in original post

20 Comments 20
Raywhite28
Level 7

Unapplied Cash Payment Income

Run your P&L report & then double click on the amount. That should bring up the transaction that created it. If not, the double click on the amount in the list until the transaction displays.

darshanpatel82
Level 1

Unapplied Cash Payment Income

Thank you Ray,

I clicked on that and check the transactions. They are correctly allocated to the EFTPOS account. Still it is showing in the Unapplied Cash Payment Income.  I would like to see P&L both on cash and on accrual basis same. The difference is $932,000.

 


@Raywhite28 wrote:

Run your P&L report & then double click on the amount. That should bring up the transaction that created it. If not, the double click on the amount in the list until the transaction displays.


 

qbteachmt
Level 15

Unapplied Cash Payment Income

"I would like to see P&L both on cash and on accrual basis same. The difference is $932,000."

 

Are you using AR or invoicing as part of this? "Unapplied" indicates you processed as AR a Received Payment for a customer name, dated earlier than charges or having No charge for that name at all. When you uare using a JE for POS, you should never use AR or Names. You would set up and use your own Other Asset account, for "house charge" increase and decrease, as one example.

 

Take a look at this example:

https://www.youtube.com/watch?v=NxYliKN0fxE

lynda
Community Champion

Unapplied Cash Payment Income

Relate your invoices to be prior to the payments and it will remove that unapplied acct.
Vanna
Level 3

Unapplied Cash Payment Income

Hi. I have a similar problem. P&L for 2019 shows $8000 in Acc Unapplied Cash P Income.

If I go and adjust the date of invoices to the date of payments it will not give any problems in other reports?

And also, some of the invoices can’t be changed in dates, so should I change the date of payments then?

Thank you!!!!

AlcaeusF
Moderator

Unapplied Cash Payment Income

Welcome aboard to the Community, @Vanna.

 

When recording transactions in the QuickBooks system, I suggest you mirror them to the actual date when you create sales transactions and payments.

 

There are only two reasons why transactions are showing in the Unapplied Cash Payment Income account. It's either you record the payment before creating the sales form, or they weren't matched at all.

 

You can start with running the Open Invoices report to verify transactions showing as not yet paid. Here's how:

 

  1. Log into your QuickBooks account.
  2. Select Reports.
  3. In the Find report by name field, enter Open Invoices.
  4. Set the report period, then select Run report.
  5. In the Transaction Type column, locate a transaction listed as a Payment.

For future reference, visit the Unapplied cash payment income on your profit and loss article. You can follow the detailed instruction in the order shown to get this fixed.

 

If there’s anything else I can help you find in QBO, post a comment below. I’m here ready to assist further. Have a good one.

Vanna
Level 3

Unapplied Cash Payment Income

Thank you.

I was wondering is it possible/legal to go back and change date of the invoices? They will stay in the same month +/- day or two, is that fine?

 

Kendra H
QuickBooks Team

Unapplied Cash Payment Income

Good afternoon, @Vanna.

 

Thank you for your feedback, it helps us improve and grow. I strive to provide the best possible support.

 

For you to get the solution, I'd suggest consulting with your accountant to be sure.

 

I'm unable to advise you on which route would be best for your business, but you can change the date of your invoice.

 

QuickBooks automatically assigns numbers to your transactions unless you turn on the Custom Transaction Numbers. Once this feature is turned on, this will as an Invoice No. field where you can enter any format you want.

Here's how:

  1. Select the Gear icon, then choose Account and Settings.
  2. Pick the Sales tab.
  3. Click anywhere within the Sales form content section.
  4. Check the box next to Custom transaction numbers.
  5. Go to Save and then Done.

I'm also providing a link to customize you transaction numbers as well: Customize Your Transaction Numbers

 

If you have any more questions, please don't hesitate to reach back out. Have a great rest of your day!

 

 

 

kanthony
Level 2

Unapplied Cash Payment Income

Could you please explain how to resolve unapplied cash payment income that has deposit or invoice as the transaction type?

Catherine_B
QuickBooks Team

Unapplied Cash Payment Income

I'm here to help you link your deposits to your invoices, kanthony. 

 

It looks like that we created a Bank deposit to receive the payment and created an invoice for the purchases. We'll link the deposit to the invoice to mark it as paid.

 

Let's open the deposit first to edit the accounts. Let me show you how:

  1. Go to the Sales menu and click All Sales
  2. Locate and click the bank deposit
  3. Under the Add funds to this deposit section, select Accounts Receivable (A/R) in the Account fields. Changing the account to A/R allows us to apply it to an invoice. 
  4. Click Save and close

AR.PNG

To link the deposit to the invoice, here's how: 

  1. Let's open the invoice still from the Sales page or in the customer's transaction list. 
  2. At the upper-right, click Receive Payment
  3. Select the Invoice and to apply and at the bottom check the Deposit under Credits
  4. Click Save and close

AR3.PNGAR2.PNG

You might want to repeat the steps again for the rest of your deposits and invoices. After applying the payments, we can now open your Profit and Loss reports to check if the Unapplied Cash Payment is cleared. 

 

Let me know if you need anything else with managing your sales. Thanks!

kanthony
Level 2

Unapplied Cash Payment Income

I'll give this a try, but wanted to go ahead and thank you for responding.  This is such a valuable resource.  I'll keep you posted.

kanthony
Level 2

Unapplied Cash Payment Income

This worked beautifully.  Thank you!

Alicia
Level 3

Unapplied Cash Payment Income

The way Intuit explains to get rid of a customer's bounced payment causes transactions to show up in Unapplied Cash Payment Income. It tells you to create an expense to apply the bounced payment to so you can free up the invoice to show as "unpaid" again. Once you apply that customer payment to the expense, it shows up in Unapplied Cash Payment Income. Is there a way to fix this - either handle bounced payments differently or clean up the Unapplied Cash Payment Income account after the fact?

Rasa-LilaM
QuickBooks Team

Unapplied Cash Payment Income

Thank you for joining this thread, Alicia.

 

I appreciate you for sharing your feedback about the bounced payment workflow in QuickBooks Online (QBO). I'm here to help ensure this process is smooth for you.

 

You're right. When you create an expense and apply it to the bounced payment, the invoice will show as unpaid and open. You'll have to send your customer a statement, so they'll know what they owe you and why (there's an open invoice).

 

When the customer repays the bounced amount plus any fees, receive the payment. Apply it directly to the original unpaid invoice. For in-depth information about the process, you can browse this article: Record a returned or bounced check using an expense in QuickBooks Online

 

You may want to consult an accountant for advice on the best way to handle your concern. They can review your specific workflow and books to provide personalized recommendations for resolving bounced checks and unapplied cash payments.

 

There are several methods in QuickBooks Online (QBO) for dealing with bounced checks and resolving unapplied cash payments. If you encounter any of these issues in the future, you can try the troubleshooting procedures described in these resources: 

 

 

Please let me know if you need any clarification or have additional questions about cleaning up unapplied cash payments or bills and bounced payments. I'm happy to help find a better solution that works for your business's needs. Have a good one, @Alicia.

Alicia
Level 3

Unapplied Cash Payment Income

The invoice is not what is showing in Unapplied Cash Payment Income. After the customer pays it again (without bouncing), the invoice is cleared.

 

It's the original payment (which bounced) that was applied to the expense (created because the payment bounced) which is still sitting in Unapplied Cash Payment Income. Since the payment is never matched to a sales transaction (it is matched to the expense created), it lands in the Unapplied Cash Payment Income account. That is the transaction I'm asking about - can that be cleared out of the account or is there another way to clear a bounced payment other than creating that expense, because applying that payment to an expense is the cause of the original payment remaining in the Unapplied Cash Payment Income.

Mdmx1324
Level 2

Unapplied Cash Payment Income

Hi.  QuickBooks has really messed this one up. We collect "deposits" from customers for work that has not yet been done (we are a landscape company).  Once the work is done, we create the invoice and apply all of the deposits. We can't back date the invoice and if you change the payment date to a future date, your bank rec is going to be a mess. So, this whole transaction ends up in the unapplied cash payment account.  AND any invoices and payments in the unapplied cash payment account DOES NOT move over and be counted in the sales tax liability account. 

Can someone at QBO explain this to me?  Is there a work around without changing dates? 

This is creating a real mess when trying to figure out our sales tax liability!!!!

Thank you.

SheandL
QuickBooks Team

Unapplied Cash Payment Income

Hi there, @Mdmx1324. We can find the invoices associated with the unapplied cash payment and attach the payment that is associated to it. Let me help you in completing this process. 

 

Please note that transactions that aren't sales forms, such as deposits and journal entries, are not included in the sales tax liability report. To ensure that your unapplied cash payments are included in this account, you'll need to apply them to an invoice by recording the payment.

 

To resolve this, we can generate the Open Invoices report and find the invoices that is related to the unapplied cash payment. To so do, here's how:

 

  1. Go to Reports, then search for the Open Invoices report
  2. Once on the report page, set the accurate Report period, then Refresh report.
  3. Locate a transaction that is listed as Payment from the Transaction type column.

 

If this Payment transaction matches to an open invoice, you can proceed with these steps: 

 

  1. Click Payment from the Transaction type column to open.
  2. Find the open invoice under the Outstanding Transaction.
  3. Once you've located it, tick the checkbox.
  4. After that, click Save and close. 

 

However, if the payment isn't connected to an open invoice, you'll need to create a dedicated transaction for this purpose. For detailed guidance on how to execute this, please refer article for instructions: Unapplied cash payment income on your profit and loss.

 

Additionally, I’ll include these articles for a comprehensive overview of your financial records and guidance on customizing reports to display the data you need.

 

 

If you have other concerns about handling your unapplied cash payments in QuickBooks, don't hesitate to post in this form. We'll be here to assist you anytime.

Mdmx1324
Level 2

Unapplied Cash Payment Income

Thanks for your response.  All of the payments have checkmarks by the invoices they paid.  There are no open invoices. All payments have been attached to invoices and left with a zero balance.  Still, they stay in the unapplied cash account and do not move over to the sales tax liability account.  From all the other comments I've read, it seems that QBO cannot handle "deposits"  for estimates the customer receives. It seems the invoice date MUST be dated before the first payment.  Is that correct?

So, can you please walk me through how to handle this scenario:

 

1.  customer gets an estimate for work to be done in September

2.  customer gives us a deposit payment in September. payment is posted in their account in September and also in the bank in September.  Bank is reconciled for September

3.  we start work in October and are finished on the 29th

4.  we create the invoice dated October 29th

5.  we apply their deposit payment to this invoice

6.  transaction is complete

7.  this is a sales tax transaction

Problems:  

1.  this whole transaction ends up in the unapplied cash account where it really does not belong

2.  the sales tax from the invoice is not carried over to the sales tax liability account therefore underestimating our liability to the state

 

After reading the QBO team responses, it seems QBO is avoiding the obvious.  I just want to know if QBO is working on this issue. 

Thank you.

LeizylM
QuickBooks Team

Unapplied Cash Payment Income

I'm here to effectively manage customer deposits and ensure proper accounting in QuickBooks Online (QBO), Mdmx.

 

The system will follow the invoice over the estimate, as the estimate is considered a non-posting transaction. To ensure that the sales tax is applied for September, you'll need to adjust the invoice date accordingly. 

 

The unapplied cash payment income account in QuickBooks is used to track cash income from customer payments that have been received but not linked to any specific sale yet. This account helps businesses see money coming in that isn’t connected to an invoice or sales receipt. Once you apply the payment to the correct invoice or sales form, the balance in this account will go down to zero.

 

You can check this article for more information: Unapplied cash payment.

 

To ensure your monthly tax liabilities are recorded correctly, it's important to date the invoice properly. QuickBooks uses the invoice date to know when to post the transaction in your records. How you record the transaction initially will affect how QuickBooks handles your tax reporting. By setting the invoice date to the right period, you can keep accurate records and stay compliant with tax regulations, making financial reporting easier.

 

Additionally, I’ll include these articles to give you a clear overview of your financial records. They will also help you customize reports to show the data you need.

 

 

The thread is always open if you have questions or need further assistance handling your unapplied cash payments in QuickBooks. I'm always here to assist you.

Rainflurry
Level 14

Unapplied Cash Payment Income

@Mdmx1324 

 

If your state requires you to pay sales tax on cash basis, you need to invoice them for a taxable deposit.  Set up a service item called 'Taxable Deposit' or something similar that is taxable and mapped to an income account.  Then, receive payment on that invoice.  That records income and sales tax when received on cash basis.  When you issue the final invoice to the customer, to apply the deposit to the invoice, enter the taxable deposit service item as a negative amount and it will reduce the sales tax due on the final invoice by the sales tax paid at the time of the deposit.  Now, if you're on accrual basis but your state requires you to pay sales tax on cash basis, then things get more complicated.    

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