kaitlyndever's blog

QuickBooks Unapplied Cash Payment Incomecan be noticed when the Profit and Loss report is run using the cash method. The system creates this account automatically to ensure correct tax reporting.

Unapplied Cash Payment Income Is Displayed on the Report If

• A customer made a prepaid payment, and you logged this payment before creating the sales form, which is sales or invoice receipt.

• You enter payments, and they are not matched with the sales form.

Let's have a look at how this is dealt with:

• Check that the Open Invoice report is running.

• Select Reports from the left menu.

• Then proceed to the field of Enter the name of the report, followed by Open Invoices.

• Then select Open Invoices.

• Look in the Transaction type column for the transaction that is labelled as the Payment.

• If an invoice with a matching amount is present and the customer is present, choose payment.

• Open the Receive payment page and then click on the checkbox next to the matching invoice.

• Select Save and Close.

• If you can't find the corresponding receipt and invoice, have the transaction made.

• Select the (+) Plus icon at the top and then Invoice/Sales Receipt.

• Then fill out the form with the same date, amount, and customer as payment.

• Then select Save and Close.

• Examine your report of Open Invoices to see whether there is another transaction shown as the Payment. If you locate any, make sure to repeat Step 2 for each of them.

• Then try again to run the Profit and Loss report. You will see that the Unapplied cash payment income account no longer appears in your report.