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darshanpatel82
December 9, 2017
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Unapplied Cash Payment Income

  • December 9, 2017
  • 2 replies
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Hi, 

I am running quick book profit & loss account on Cash basis and noticed that there is an amount sitting in the Unapplied Cash Payment Income eventhough i have not created this account and not entered anything. Can any one help me to get rid of this.

Normally i book sales from Z report through Journal Entry and book EFTPOS payment against the account in Balance sheet. I don't understand this things. 

It shows now 1000 transaction in that account. 

 

Thank you 

Darshan Patel 

      Best answer by AlcaeusF

      Hi. I have a similar problem. P&L for 2019 shows $8000 in Acc Unapplied Cash P Income.

      If I go and adjust the date of invoices to the date of payments it will not give any problems in other reports?

      And also, some of the invoices can’t be changed in dates, so should I change the date of payments then?

      Thank you!!!!


      Welcome aboard to the Community, @Vanna11.

       

      When recording transactions in the QuickBooks system, I suggest you mirror them to the actual date when you create sales transactions and payments.

       

      There are only two reasons why transactions are showing in the Unapplied Cash Payment Income account. It's either you record the payment before creating the sales form, or they weren't matched at all.

       

      You can start with running the Open Invoices report to verify transactions showing as not yet paid. Here's how:

       

      1. Log into your QuickBooks account.
      2. Select Reports.
      3. In the Find report by name field, enter Open Invoices.
      4. Set the report period, then select Run report.
      5. In the Transaction Type column, locate a transaction listed as a Payment.

      For future reference, visit the Unapplied cash payment income on your profit and loss article. You can follow the detailed instruction in the order shown to get this fixed.

       

      If there’s anything else I can help you find in QBO, post a comment below. I’m here ready to assist further. Have a good one.

      2 replies

      Raywhite28
      Raywhite28
      December 9, 2017

      Run your P&L report & then double click on the amount. That should bring up the transaction that created it. If not, the double click on the amount in the list until the transaction displays.

        D
        darshanpatel82Author
        December 9, 2017

        Thank you Ray,

        I clicked on that and check the transactions. They are correctly allocated to the EFTPOS account. Still it is showing in the Unapplied Cash Payment Income.  I would like to see P&L both on cash and on accrual basis same. The difference is $932,000.

         

        @Raywhite28 wrote:

        Run your P&L report & then double click on the amount. That should bring up the transaction that created it. If not, the double click on the amount in the list until the transaction displays.

         

        qbteachmt
        qbteachmt
        December 9, 2017

        "I would like to see P&L both on cash and on accrual basis same. The difference is $932,000."

         

        Are you using AR or invoicing as part of this? "Unapplied" indicates you processed as AR a Received Payment for a customer name, dated earlier than charges or having No charge for that name at all. When you uare using a JE for POS, you should never use AR or Names. You would set up and use your own Other Asset account, for "house charge" increase and decrease, as one example.

         

        Take a look at this example:

        https://www.youtube.com/watch?v=NxYliKN0fxE

        M
        Mdmx1324
        October 26, 2024

        Hi.  QuickBooks has really messed this one up. We collect "deposits" from customers for work that has not yet been done (we are a landscape company).  Once the work is done, we create the invoice and apply all of the deposits. We can't back date the invoice and if you change the payment date to a future date, your bank rec is going to be a mess. So, this whole transaction ends up in the unapplied cash payment account.  AND any invoices and payments in the unapplied cash payment account DOES NOT move over and be counted in the sales tax liability account. 

        Can someone at QBO explain this to me?  Is there a work around without changing dates? 

        This is creating a real mess when trying to figure out our sales tax liability!!!!

        Thank you.

        S
        SheandL
        October 26, 2024

        Hi there, @Mdmx1324. We can find the invoices associated with the unapplied cash payment and attach the payment that is associated to it. Let me help you in completing this process. 

         

        Please note that transactions that aren't sales forms, such as deposits and journal entries, are not included in the sales tax liability report. To ensure that your unapplied cash payments are included in this account, you'll need to apply them to an invoice by recording the payment.

         

        To resolve this, we can generate the Open Invoices report and find the invoices that is related to the unapplied cash payment. To so do, here's how:

         

        1. Go to Reports, then search for the Open Invoices report. 
        2. Once on the report page, set the accurate Report period, then Refresh report.
        3. Locate a transaction that is listed as Payment from the Transaction type column.

         

        If this Payment transaction matches to an open invoice, you can proceed with these steps: 

         

        1. Click Payment from the Transaction type column to open.
        2. Find the open invoice under the Outstanding Transaction.
        3. Once you've located it, tick the checkbox.
        4. After that, click Save and close. 

         

        However, if the payment isn't connected to an open invoice, you'll need to create a dedicated transaction for this purpose. For detailed guidance on how to execute this, please refer article for instructions: Unapplied cash payment income on your profit and loss.

         

        Additionally, I’ll include these articles for a comprehensive overview of your financial records and guidance on customizing reports to display the data you need.

         

         

        If you have other concerns about handling your unapplied cash payments in QuickBooks, don't hesitate to post in this form. We'll be here to assist you anytime.

        M
        Mdmx1324
        October 26, 2024

        Thanks for your response.  All of the payments have checkmarks by the invoices they paid.  There are no open invoices. All payments have been attached to invoices and left with a zero balance.  Still, they stay in the unapplied cash account and do not move over to the sales tax liability account.  From all the other comments I've read, it seems that QBO cannot handle "deposits"  for estimates the customer receives. It seems the invoice date MUST be dated before the first payment.  Is that correct?

        So, can you please walk me through how to handle this scenario:

         

        1.  customer gets an estimate for work to be done in September

        2.  customer gives us a deposit payment in September. payment is posted in their account in September and also in the bank in September.  Bank is reconciled for September

        3.  we start work in October and are finished on the 29th

        4.  we create the invoice dated October 29th

        5.  we apply their deposit payment to this invoice

        6.  transaction is complete

        7.  this is a sales tax transaction

        Problems:  

        1.  this whole transaction ends up in the unapplied cash account where it really does not belong

        2.  the sales tax from the invoice is not carried over to the sales tax liability account therefore underestimating our liability to the state

         

        After reading the QBO team responses, it seems QBO is avoiding the obvious.  I just want to know if QBO is working on this issue. 

        Thank you.

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