Question

unapplied cash income is showing

Forum|Forum|3 months ago
April 6, 2026
1 reply
60 views

I have four cash payments that were applied in part to an invoice. The remainder is applied to a check. I created and dated the invoice first. I applied each partial payment as it came in. I left the remainder of the payment as a credit. Once I received all the payments, I wrote a check for the overage. I wrote the check using AR accounting code. I applied the credits to the check. The last two payments and the check are showing up as unapplied cash. i have unapplied and reapplied the payments. The invoice is fully paid. I do not understand why they are showing up as unapplied cash income. Can anyone help?

QuickBooks Online

M

MoiraskyeT

QuickBooks Team

Hi, @suzannek1.How did you record the payments? Are you trying to provide a refund for your customer?

To record payments, follow the steps below and link them directly to their corresponding invoice.

To begin, go to All Apps and select Accounting. Click on Chart of Accounts and locate the account where you deposited the payment. Next, click on View Register to locate and select the correct deposit. In the Received From dropdown menu, select the customer from whom you received the deposit. Then, from the Account dropdown menu, select Accounts Receivable. Finally, click Save to complete the process.

Then, link the payment to an invoice.

If you are processing a refund for a customer, follow these steps and link it to a credit. It will ensure that all unapplied payments are removed and brought to zero.

To issue a refund, navigate to the Expense or Check section. From the Payee account dropdown, select the customer you wish to refund. In the Category column, choose Accounts Receivable on the first line. Then, enter the total refund amount in the Amount field. Complete any other necessary fields, and don't forget to save your changes afterward.

If you have additional concerns, please reply to this post.

S

suzannek1Author

Hello,

The payments (4) are all linked to the invoice as I use the Receive Payment option.

The payments are split between us and the client. So the invoice is less than the payments.

As I received the payments (separately) I applied 50% to the invoice, leaving the remaining as a credit.

After all the payments were received, I wrote a "check" for the 50% that goes to the client using Accounts Receivable and then attaching the check to the invoice. This should all work. But it is not. Some of the payments and the check are showing up as Unapplied Cash Payment Income.

But only if I filter for Feb and March or just March. If I include January, then it is $0. Most likely because the invoice is dated Jan. But as this spans 2 months and I need a report for just March, how does this work?

S

suzannek1Author

Actually now it is showing up in the Jan-Mar report as well.

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