The Unapplied Cash Payment Income account is automatically created and cannot be deleted. This account is used in QBO to report cash basis customer invoice payments that were received but not applied to an invoice. To clear the balance from this account you may need to correct the invoice date to one that is earlier than the payment date and apply any unapplied payments.
QBO Defaults to Today’s Date when Creating New Transactions
One of the most common causes of Unapplied Cash Payment Income showing up on your Profit and Loss Report is entering an invoice date that is later than the invoice payment date. The payment of a customer invoice should always be later than the date of the invoice itself. QBO automatically enters today’s date when you create a customer invoice or an invoice payment.
Sometimes businesses collect a payment from their customer and record the payment before they create an invoice for their customer, as not all business owners have time to do their bookkeeping daily. This is the most frequent cause of Unapplied Cash Payment Income, as payments received before invoices are created need to be manually applied to the invoice.
The two main causes of Unapplied Cash Payment Income are as follows:
- Customer Invoice dates that are later than the Customer Invoice Payment Date
- Customer Invoice payments that are never applied to a Customer Invoices
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The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
