In my sales report for customers it shows "unapplied payment". I am not using cash basis. How do I "apply those payments?

Welcome to the Community @MB0252!
 

That's a great question you have! I'll be glad to guide you on how to apply for the unapplied payment.
 

Unapplied payments usually happen when you receive a customer's payment without an invoice, or if you create an invoice but delete it later time, this will create an unapplied payment.
 

Here's how to apply unapplied payment:
 

1. Go to +New.
2. Select Receive payment. 
   
3. Choose the customer that has unapplied payment.
4. Select a pending invoice in the outstanding transactions tab by putting a checkmark. 
   

    

5. Scroll down and check the box for the Credit Memo.
6. Once done, click Save or Save and close.
   

    

Please ensure that the Automatically applied credits option is disabled so you can decide which invoices the credits should apply to.

Here's how to check:
 

1. Go to the Gear icon or Settings Icon.
2. Select Account and settings.
   
3. Choose Advanced.
4. Click the Automation section, and check if Automatically apply credits are not toggled.
   

In addition to this, you can visit this article to earn more about unapplied payments: Unapplied Cash Payment.

To learn more about how to effectively record invoice payments, I highly recommend taking a look at this article. It dives into the details and offers practical insights that can enhance your understanding.

For further assistance in your sales or any related QuickBooks Online issue, don't hesitate to tap the Community again. Have a great day!