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bvandermeer
December 9, 2024
Question

Handling a bounced check leads to Unapplied Cash Payment Revenue in P&L

  • December 9, 2024
  • 1 reply
  • 0 views

A client paid us, and the check bounced.

 

In my bank account, this is what that looked like:

11/4/24: deposited check for $252

11/7/24: return deposited check, -$252

11/13/24: deposit new check for $252

 

I followed the instructions here: https://quickbooks.intuit.com/learn-support/en-us/help-article/receive-payments/record-returned-bounced-check-using-expense/L4O144llZ_US_en_US three times through.

 

Each time, my Profit & Loss report now shows a $0 balance for Unapplied Cash Payment Revenue.

11/7 Expense, -$252

11/4 Payment, $252

Cancelling each other out and equaling $0

 

I think this happened because of Step 2 in the instructions, where you take the initial payment (11/4), un-match it from the original invoice, and rematch it to the new Expense (11/7) you created in Step 1.

 

How do I get the Unapplied Cash Payment Revenue to go away? Did I do something wrong?  Or is this just standard?

1 reply

A
AnneMariee
December 9, 2024

It sounds like you've correctly followed the process for handling a bounced check, bvandermeer.

 

The zero balance in your Unapplied Cash Payment Revenue account indicates that the amounts have offset each other, which is expected in this scenario. In other words, it is standard behavior as it reflects that the original payment and the expense created to account for the returned check have canceled each other out.

 

Additionally, you can customize your Profit and Loss report to only show active rows/columns. This way, the zero balance Unapplied Cash Payment Revenue will not be visible. Here's how to do this:

 

  1. On the left navigation panel, go to Reports.
  2. Locate the Profit and Loss report.
  3. From the Show non-zero or active only dropdown, select Non-zero rows.
  4. Click Run report.

 

However, remember to do this cautiously, as excluding accounts may hide entries you want to see.

 

You may refer to these helpful resources for more info on the topics above:

 

 

For future reference, refer to this article on ensuring your accounts match your bank statements: Reconcile an account in QuickBooks Online.

 

You may also want to consult our QuickBooks Live Expert Assisted team for more tailored guidance in seamlessly achieving your daily financial tasks.

 

It's my goal to help you streamline your financial processes and overview. If you have any other questions about handling checks and running reports, please don't hesitate to reach out. We're here to support you every step of the way to ensure your experience with QuickBooks is as smooth and efficient as possible. Wishing you continued success in managing your finances!

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