Unapplied Cash Payment Income

Hello there, @DG5.

Thank you for posting here in the Community. I can share some insights about the Unapplied Cash Payment Income account.

Yes, you're right that the account is used when payments were received before the invoice was created. Aside from that reason, another is that you haven't match the payment to the sales transaction.

Let's work together to resolve this!

Step 1: Let's run the Open invoices report. In the Transaction Type column, locate a transaction listed as a Payment.

If the Payment transaction matches on the open invoice, you can proceed to Step 2. Otherwise, go directly to Step 3.

Step 2: The Payment transaction matches an open invoice:

1. Click the Payment date.
2. Under Outstanding Transactions, check the open invoice.
3. Select Save and close.

Step 3: The Payment transaction doesn't match an open invoice:

1. Click the Plus (+) icon.
2. Select Invoice.
3. Enter the same customer, amount and date as the payment.
4. Select Save and close.
5. Go back to the Open Invoices report.
6. Find the unapplied payment and click the date.
7. Under Outstanding Transactions, check the open invoice.
8. Select Save and close.

Repeat the same steps until there are no payment transactions anymore. After that, pull up the Profit and Loss report once more.

You should no longer see the Unapplied cash payment income, DG5.

Let me know the results, @DG5. I'm still here to help you more if you have follow-up questions about reports. Just click the "Reply" button or mention my name. Wishing you all the best!

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@DG5 wrote:

When I run my P and L cash basis, I have a lot of income in Unapplied Cash Payment Income. My  understanding is that this is the account QB uses when payments were received before the invoice was created. My question is that I have cases where the payment was received before the invoice was made, but I subsequently made the invoice and applied the payment to that invoice. Why is this income still being reported as Unapplied Cash Payment Income?

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It also depends on the date range of the P&L. Is the invoice dated after the "To" date of the P&L?

Just change the date of your invoice to the date of the payment. If the payment date is prior to the invoice date you get unapplied cash payment income.