Skip to main content
Y
yorkiemom2
October 31, 2022
Question

Payments on Invoices or unapplied amounts

  • October 31, 2022
  • 1 reply
  • 0 views

I am relatively new to QBO but I have had no problems entering invoices and then going back and clicking the received payment button to attach the payment to the outstanding invoice.  My Customer list shows zero balances where should etc.  However, today I was looking at my online App for Quickbooks under Sales>Invoice Payments-- and when I go into one of my customers it shows all my invoice history totals, amounts paid, zero balance and then underneath zero total due it says the payment amount unassigned.  Someone please help! I attached a screen shot.  It shows this on every single customer in my database.  In my online QB the status of all my invoices say paid and all my payments toward those invoices say closed.  Why is the Quickbooks App showing all those unapplied payments?  

1 reply

S
SarahannC
November 1, 2022

Hello there, yorkiemom2. Let's figure out why there's unapplied payment showing using your mobile online application.

 

There are possible reasons why it happened. It could be that we haven't linked the invoice and payment successfully. Based on the sample screenshot below, it'll still show as zero.

 

Let's go back and review them. Here's how:

 

  1. Log in to a web browser.
  2. Open the invoice.
  3. Click Receive payment.
  4. Make sure to tick the Unapplied Payment under Credits and the invoice under Outstanding Transactions.
  5. Click Save and close to reflect the changes.

 

For more tips and guides, please refer to this article: Unapplied cash payment income on your profit and loss.

 

If issue persists, let's clear the app's data to refresh QuickBooks. It could be unusual behavior that needs a fix.

 

  • Android - press the menu at the top right and choose Settings. Then select Refresh Data and choose Yes.
  • iOS - select the menu at the top right and then choose Help & Feedback. Then select Refresh Data and Refresh.

 

Also, we can proceed with uninstalling and reinstalling the app. This way, we'll be able to ensure the QuickBooks components installed are complete and updated.

 

Here are some articles that helps you manage your customers and income:

 

 

I'm always here if you have other questions about recording and fixing sales transactions in QuickBooks. Take care and stay safe.

Y
yorkiemom2Author
November 1, 2022

I uninstalled QuickBooks app and reloaded it and it still shows the unapplied payments.  I went to the customer account and all invoices have no option to receive payment.  I attached a screenshot of what it looks like.  I have already done the receive payment button once I initially logged in the payment.  I show NO unapplied cash on my P/L report.  My accountant just filed our 2021 taxes (on an extension for 10-15-2022) and she never mentioned any problems that she saw in our QuickBooks account either or any reports.

 

Again, I want everyone to know I am very new to QBO.  We used a different method of accounting and just brought everything into to QBO recently for our business.  I must mention I don't use the Quickbooks Bank Deposit Function.  It was suggested to me when I first got using QBO and started asking questions to the forum was how to tie my bank deposit that comes into my bank feed to my customers account open invoices since we don't deposit the money sometimes for a week or more after receipt.  I would enter my open invoices into QBO first.   I was told to go to bank deposit in bank register and edit and add each customer payment to the bank deposit and add a line for each customer to the deposit and select rec'd from whoever the customer was, use A/R as account type and then enter the amount of the payment and in the end it all added up to the actual bank deposit that went to the bank and I would click save.  I would then go back and click Receive Payment for each open invoice.  The payment was always there and matched and zero'd out the account balance for each customer.  Should I be using the QB bank deposit?  If so, when my bank feed comes down with the bank deposit, does it match and not create a duplicate deposit in bank register?  Another thing to note, today, I took my very first credit card payment.  I noticed that customer does not show unapplied payments in his mobile account.  It is currently showing as a deposit on my bank register under account Payments to Deposit.  I am assuming when the funds from the credit card payment come down my bank feed that it will just allow me to match that deposit and not create a duplicate deposit?  I also noticed that the service fee is also showing on my QBO bank register already and I have yet to be charged that from my bank feed as well.  Sorry for all the questions.  Just wanted everyone to know my process.  I am open to a different process if it will achieve the result of not showing the unapplied payments in QB App.

MariaSoledadG
MariaSoledadG
November 1, 2022

Thank you for the screenshot and for giving more details on what you've done. I'm here to guide you on what you'll have to do, yorkiemom2.

 

Based on your screenshot, it looks like you're making a payment and deposit at the same time. That's the reason why you're seeing duplicate transactions in your bank. You'll have to make sure that when a customer pays an invoice, you'll either have to record that payment to connect it to the invoice to balance your accounts. Otherwise, if you're using QuickBooks Payments to process payments, we'll handle all the accounting for you. Once a customer makes a payment on the invoice, QuickBooks processes the payment and categorizes it into the correct account.

 

With regards to your bank deposit question, if you're going to use it or not,  this feature serves two functions. If payments are received into the Undeposited Funds account, you can group payments and deposit them as a single record into an account. Second, the ability to record, items that aren't typically captured on invoices or bills, such as assets and loans. In order for you to understand more about the importance of deposits in QuickBooks, check this article for your guide: Bank Deposits In QuickBooks Online.

 

Also, when you connect your bank and credit card accounts, QuickBooks automatically downloads the latest transactions. It tries to match with transactions you've already entered in QuickBooks. If it can't find a match, it creates a new transaction record for you. For your bank fee, may I know if it showing in your register and bank feed? If so, you can also match them instead.

 

Also, there are possible reasons why unapplied cash payment appears on QuickBooks. I've provided the reasons below:
 

  • 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'll want to run the Open invoice report to match it with the payment transactions. Here's how:

 

  1. Go to the Reports menu.
  2. Search and click Open Invoices report.
  3. Set the report period, then select Run report.
  4. In the Transaction Type column, locate a transaction listed as a Payment.

 

If the payment transaction matches an open invoice, you can follow the steps below:

 

  1. Select the Payment date to open.
  2. Under Outstanding Transactions, tap to check the box for the open invoice.
  3. After that, hit Save and close.

 

If the payment doesn’t match an open invoice, you’ll need to create the transaction. Follow these steps: 

  1. Select + New.
  2. Under Customers, select Invoice.
  3. Fill out the form with 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, then select the date to open.
  7. Under Outstanding Transactions, check the open invoice.
  8. Select Save and close.
  9. Check your Open invoices report to check if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one. Now run your Profit and Loss report again. You should no longer see the Unapplied cash payment income. 

 

Aside from that, it's also possible that the product or service item on the invoice is mapped to a bank account type, which causes the amount to go into Unapplied Cash Payment Income. If that's the case, you can double-check the account used for the item. Then, make sure to associate them with an income account type. Here's how:

 

  1. Open the invoice. Then, review all the names of the items used.
  2. On the home page, go to Sales.
  3. Select the Product and services tab.
  4. Look for the item and click Edit under the Action column.
  5. In the Income account field, change the account to Income account type.
  6. Tick the Also update this account in historical transactions.
  7. Then, Save and close to reflect the changes.

If both the invoice and payment are listed in unapplied cash income, and if the items are already mapped correctly to the account, you can create identical entries for the payment. Here's how: 

 

  1. Go to the +New button.
  2. Select Invoice under Customers.
  3. Fill out the form with 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, then select the date to open.
  7. Under Outstanding Transactions, check the open invoice.
  8. Select Save and Close.

 

Then, run the Open invoices report to see if there are any more transactions listed as a Payment. You can also run the Profit and Loss report to check if the Unapplied cash payment income is no longer showing. 


To learn more about how the account is used to report cash basis from customer payment Unapplied Cash Payment Income? Furthermore, to learn more about how you can handle reports in QuickBooks Online (QBO), I've added these articles for your reference: 

 

 

Please let me know if you have further questions about Unapplied Payment. I'll be around to help you. 

Terms & ConditionsAccessibility statement