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Level 3

Unapplied Cash Bill Payment Expense problem

I am having a problem with one of my vendor records. Here are the steps:

  1. We paid a vendor via which the vendor couldn't identify and refunded to us.
  2. We deposited the refund to AP and noted the vendor on the deposit.
  3. We created a credit memo to offset the original bill and matched it to the deposit we received.
  4. We issued a new bill with corrected info and paid it via

My T accounts show that the accounting is correct. There is no open amount on the AP aging. However, the vendor record shows a negative amount paid of 2x the amount and there is $5000 sitting in Unapplied Cash Bill Payment expense a year end even though all transactions were processed by 12/31/18. 


Can anyone help me resolve this problem? Thank you!!

QuickBooks Team

Unapplied Cash Bill Payment Expense problem

Hi @VFAKathy,


The process that you performed to track your vendor bills and credit is correct.

The bank deposit to the vendor has a negative effect because it is a reduction to the expense. This is why the total that shows under the Transaction List calculates differently than the report.

You can open your Expense by Vendor Summary Report to show the actual totals.

Here’s how:

  1. Click on Reports on the left pane.
  2. In the search box, type in Expense by Vendor Summary.
  3. Enter the dates.
  4. Click on Customize at the top.
  5. Click on the Rows and Columns drop-down arrow.
  6. Under Columns, select on Total Only.
  7. Click on Filters.
  8. Put a check-mark on the Customers box.
  9. Then Run Report.


Please feel free to read these articles for further information about unapplied cash payments:

What's Unapplied Cash Payment?

What To Do If You See Unapplied Cash Bill Payment Expense On Your Profit And Loss

Don’t hesitate to post again if you have other concerns. More success to your business!

Malcolm Ziman
Level 10

Unapplied Cash Bill Payment Expense problem



It is strange that the deposit shows as a negative, but the open amount at the top is zero so the accounting is right. 


You get an Unapplied Cash Bill Payment Expense on a cash-basis P&L when there is an unapplied Bill Payment as of the P&L date,  which is not the case in the screen shot.


Are you referring to a cash-basis P&L at year-end when you say "there is $5000 sitting in Unapplied Cash Bill Payment expense a year end" ?


If so, what do you see when you double-click the amount?

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