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Clayton-Andrews
January 15, 2020
Solved

Why are deposits credited A/R that are later linked to invoices via a payment marked as "Unapplied Cash Payment Income" on my P/L report?

  • January 15, 2020
  • 2 replies
  • 0 views
Original commenter did not share additional details
Best answer by IntuitLily

My understanding is that the deposit will count as Unapplied *until* the date of the invoice, then it becomes applied. However, I do have examples where this is happening with payments after an invoice as well.

 

This makes my P/L report more income than I made, the money should be in an income account or unapplied and mine is in both. I am pretty sure we are dealing with a bug here, do you have any open bug reports regarding Unapplied income and credits on payments?

 

Just to be clear, I take in 1000, attach it to a invoice and Quickbooks is saying my income is 2000,  because it mistakenly believes that deposit is still unapplied. The customer's balance is 0, and all invoices are marked as paid, and I am fully reconciled, but the deposit still shows up as extra income in "Unapplied" even though it was used to credit an income account.


I appreciate you taking the time to follow up, @Clayton-Andrews.

 

Yes, you're right about your understanding about the deposits counted as unapplied income. It does seem odd based on the samples you've given.

 

That said, I was able to check and verify that we have an open investigation regarding amounts in Unapplied Cash Payment Income for invoices paid after the invoice date.

 

It seems you're affected by the issue. I'd recommend, reaching out to our QBO Support so they can access your account and sign you up to receive email updates as soon as they become available.

 

The Community is always here should you need help in the future. Have a good one.

2 replies

IntuitLily
IntuitLily
January 15, 2020

Thank you for posting in the Community, @Clayton-Andrews.

 

This account is for cash-basis reporting. You received the payment, however, it was not applied to any sales form. If you receive the deposit today and invoice it at a later date, it will be unapplied until the date the invoice hits the books.

 

You can refer to this article for more details: What's Unapplied Cash Payment?

 

Let me know if you have other questions. I'll be around to help. Have a nice day!

C
Clayton-AndrewsAuthor
January 15, 2020

This is how it went down:
I get a combined deposit from multiple sources, so I split it up, but to do that I have to categorize a portion as my customer's Accounts Receivable. I then go over to my customer's invoices and see the deposit as a credit. I then take this deposit and with a payment link it to the invoice. The invoice is marked as paid. However, that deposit still shows as "Unapplied".

M
mv32
January 15, 2020
Thank you for sharing the details @Clayton-Andrews. Please allow me to join and help you resolve the issue.

 

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.

To begin, let's run the Open Invoices report to locate the transaction posted as payment. This way, we can identify the right solution to clear the Unapplied Cash Payment Income on your P&L report.

Here's how:

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

After that, check if the payment matches an open invoice or not. To correct it, please refer to Step 2 in this article if you see a match, or follow Step 3 if there's none: Unapplied cash payment income on your profit and loss.

Once done, run your Profit and Loss. It should clear the Unapplied payment income.
 

Should you have questions, leave a message for further assistance. I'm always here to help. Take care!

S
skitch
May 11, 2023

Customer paid an invoice in full, later realized that they did not get all of the services they paid for.   We created a credit memo after the invoice was paid, and refunded the credit memo amount.   How do I eliminate the Unapplied Cash Payment Income on my P&L which is for the amount of the credit/refund??   Thank you

 

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