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lawrenanne1
October 20, 2024
Question

Unapplied cash payment income account

  • October 20, 2024
  • 1 reply
  • 0 views

My client is a corporation that uses accrual accounting, but QBO (during conversion from Sage) set up an "unapplied cash payment income" account that I can't get rid of in spite of it having a zero balance.  This account makes no sense in accrual accounting as unallocated cash should show on the balance sheet, not the income statement.  I'm not all that familiar with QBO; can someone tell me how to get rid of this account?

    1 reply

    Rainflurry
    Rainflurry
    October 20, 2024

    @lawrenanne1 

     

    Unfortunately, you can't deactivate that account in QBO because it's a default account.  Your options are:

     

    1) Eliminate the entries that hit that account.

    2) When you run a P&L, select 'Customize' in the upper-right, then under 'Rows/Columns', under the 'Show non-zero or active only' pull-down, select 'Non-zero' under 'Show rows'.  That will remove the account from the P&L report.  

      JenoP
      JenoP
      October 20, 2024

      The Unapplied Cash Payment Income account in QuickBooks Online serves several important purposes, lawrenanne1. Allow me to join the thread and share additional details about this account.

       

      In most cases, this account would automatically show up if:

       

      • A customer makes a payment and is recorded before creating the associated sales form (invoice or sales receipt).
      • Payments are entered without being matched to corresponding sales forms.

       

      Similar to what's been previously shared by Rainflurry, the Unapplied Cash Payment Income is one of the accounts that can't be deactivated in QBO. These accounts are automatically generated during the initial setup process or when certain events occur, such as importing transactions from other accounting software.

       

      Since the account has a zero balance, you can also follow the suggested workaround on how to remove the account when running reports. Here's an article for additional guidance about this: Remove Deleted Accounts From Reports In QuickBooks Online.

       

      These resources will also provide a comprehensive understanding of how to work with the Unapplied Cash Payment Income account and similar special accounts in QuickBooks Online:

       

       

      Additionally, you may find these articles helpful when working with your client's chart of accounts and generating reports:

       

       

      Don't hesitate to visit us again if you have any further questions while working in your client's account and performing any other bookkeeping tasks in QBO. We're always here to provide clarification and offer our help. 

      L
      lawrenanne1Author
      October 20, 2024

      This account currently has nothing in it, and I'm trying to prevent anything from going in it.  I know how to make it not show up, but I'm trying to prevent problems by eliminating the account altogether.  Why would QBO create an undeletable account that DOESN'T FOLLOW GAAP?  This is crazy.  I can see why it would be a default if someone selected "cash accounting" as the accounting method, it's bad accounting to recognize cash as income without an invoice in accrual accounting.  I am SO not impressed with QBO; desktop is a much better product. 

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