You may notice, When you run a Profit and Loss report using the cash method, sometimes you can see Unapplied cash payment income because of proper tax reporting, and this account is generated by QuickBooks itself. So here, WiZXpert will help you on how to resolve unapplied cash payment income on your profit & loss.
Main Reasons why unapplied cash payment income may display on your report if:
- When any customer prepaid you and then you record the payment before generating a sales form (invoice or sales receipt).
- You register the payments without matching them to the sales forms.
Now, after knowing the reason, let’s get started with the resolve unapplied cash payment income on your profit & loss.
Steps To Resolve Unapplied Cash Payment Income
Step 1: Run the Open Invoices report
Here are the steps to run the open invoices report, check it out below:
- First, click on the Reports, now look for the Find report by name field, and click on Open Invoices.
- Now, you have to set the report period, and later click on the Run report.
- Later go to the Transaction Type column, place a transaction listed as a Payment.
If the payment transaction matches an open invoice, go to step 2. If you do not observe an open invoice matching, go directly to step 3.
Step 2: If the Payment transaction matches an open invoice
Go with these steps if your payment matches an open invoice.
- Click on the Payment date to open.
- Now, go to the Outstanding Transactions, check the open invoice.
- Click on Save and close.
Suggested Read: New Cash-Accrual Report Feature in QuickBooks Desktop
Step 3: If the Payment transaction doesn’t match an open invoice
If in case your payment does not match an open invoice, then you will have to create the transaction. Go with these steps:
- Click on the + New, look for the Customers and click on it, later click on Invoice.
- Now you have to fill the form with the same customer, amount, and date as the payment.
- Later, click on Save and Close.
- And now go back to the Open Invoices report.
- Locate the unapplied payment, and later click on the date to open.
- Check the open invoice, under Outstanding Transactions.
- Click on Save and Close.
- Check your Open invoices report seeing if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one.
- Check your open invoice report to see if there are any other transactions recorded as payment. If any then you have to repeat step 2 for every transaction.
Now, You are good to go or run your Profit and Loss report over. Hope now you will no longer see the Unapplied cash payment income.
Hope, this article will work for you to resolve unapplied cash payment income on your profit & loss. You can easily resolve the issues by applying the above steps, but in case you need any technical help while performing the steps then feel free to contact us by dialing our toll-free+1-844-770-0699 and get instant help from our Intuit Certified ProAdvisors.