Skip to main content
L
lakhsram72
January 3, 2025
Question

Unapplied cash payment income

  • January 3, 2025
  • 2 replies
  • 0 views

I would like to know why my unapplied cash payment income has about 20K in there.  Here is my situation:  

I collect a retainer from my clients for the services and post it to their account as credit.  I create an invoice at a later date and apply the credit from my client as a payment and send the invoice to the client for the balance amount.  I have been doing this for the last 4 years.  I did not have a problem in QB desktop.  But even though I apply the payment to the invoice and make sure it is matched to the right one,  it still shows a lot of them as under unapplied cash payment income.  

I called QB support and they said they have to do something in the backend and waited for them to call back. But nothing happened.  I got an email saying that they closed my case.  The support team have no clue as to why this is happening and cannot help me.  I have called them numerous times.

 

Is there anyone who can help me fix this issue?

    2 replies

    Rainflurry
    Rainflurry
    January 3, 2025

    @lakhsram72 

     

    Unapplied cash payment income is unique to QB Online.  Desktop didn't categorized payments in this manner.  IMO, this is an upgrade over Desktop because retainer payments are, in fact, income when received on cash basis.  The unapplied cash payment income should only show on your cash basis P&L when the P&L dates include the date the retainer payment is received but prior to the payment being applied to the invoice.  Is that what you're seeing?   

      S
      Sherrie_F
      January 3, 2025

      I know how precious time is for everyone, especially when facing a complex issue that may require a multi-faceted approach to resolve fully, @lakhsram72.  Rest assured, I'm here to assist you, and I have essential information to share regarding the 20K appearing in your transactions on QuickBooks Online (QBO).

       

      The display of unapplied cash payment income in QBO hinges on the specific methods you employ to record your transactions.

       

      To pinpoint the origin of this amount, I highly recommend running a detailed report. Here's how:

       

      1. Navigate to the left panel and click on the Transactions tab.
      2. Choose Chart of accounts.
      3. In the Filter by name or number search box, type Undeposited Funds.
      4. Click on Run report from the ACTION dropdown menu.

       

      This procedure will allow you to review your transactions thoroughly.

       

      Should this issue persist, please consider revisiting the status or any updates concerning your previously closed case with our data services team.

       

      For a deeper understanding of unapplied cash payment income appearing on your reports, find this article helpful: Unapplied Cash Payment Income on Profit and Loss Report in QuickBooks Online.

       

      Additionally, here's an article you can browse to help you customize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

       

      Thank you for your continued patience as we work diligently to resolve this matter swiftly, @lakhsram72. Please don't hesitate to reach out with any further inquiries regarding your transactions. My team and I are here every step of the way to provide you with all the support you need.

      L
      lakhsram72Author
      January 3, 2025

      I have tried everything but it still does not resolve my issue.  I wish someone at QB would be knowledgeable and give me a solution to this.  I hate it when I cannot get this right.

      H
      Heide DC
      January 4, 2025

      I see you're efforts despite facing challenges managing your payments and invoices in QuickBooks Online (QBO), lakhsram72. Here’s an additional strategy you can try, along with some further actions.

       

      Unapplied cash payment income may appear on your report if:

       

      • A customer prepaid you and you recorded the payment before creating the sales form (invoice or sales receipt).
      • You entered payments without matching them to sales forms.

       

      You can address the issue by taking the following steps:

       

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

       

      If the transactions still show under unapplied cash payment income, I recommend contacting our Customer Support team again for further assistance. They can review your account using their tools and determine the root cause of the issue.

       

      Here's how you can connect with them:

       

      1. Sign in to your QBO company.
      2. Click the Help menu and proceed to the Assistant tab.
      3. Type contact support in the chat box and press Enter.
      4. Select Contact a human, then click Live Chat or Call me back.
      5. Type in a short description of your concern and click Continue.
      6. Choose between Callback or Chat.

       

      I also recommend consulting with your accountant to verify that your records are accurate. They can offer additional advice on managing unapplied payments in the system.

       

      Moreover, you can check these resources for additional reference about unapplied payments:

       

       

      Be sure to review their support hours so you'll know when agents are available.

       

      Allow me to share these articles in case you need more guidance and resources when working with your banking transactions: 

       

       

      If you need more clarifications about handling unapplied payments in QuickBooks, just add them to the thread. I'll be here to help.

      Terms & ConditionsAccessibility statement