Unapplied cash payment income may appear when you produce a Profit and Loss report using the cash method. QuickBooks creates this account to ensure accurate tax reporting. If a customer prepaid you and you recorded the payment before creating the sales form, QuickBooks Unapplied Cash Payment Income may display on your report (invoice or sales receipt). Payments were entered without being matched to sales forms. The steps below will assist you in resolving QuickBooks Unapplied Cash Payment Income on your Profit and Loss statement. 1step: Execute the Open Invoices report. To run the open invoices report, do the following: Navigate to Reports. Enter Open Invoices in the Find report by name field. Set the report period, then click the Run report button. Locate a Payment transaction in the Transaction Type column.

If the Payment transaction matches to an open invoice, go to Step 2. If you don't see a corresponding open invoice, skip to Step 3. Step 2: Check to see if the Payment transaction corresponds to an open invoice. If the payment matches an open invoice, proceed as follows. To open, select the Payment date. Check the open invoice under Outstanding Transactions. Choose Save and close. Step 3: If the Payment transaction does not correspond to an open invoice If the payment does not correspond to an open invoice, you must create the transaction. Take the following steps: Select + New. Select Invoice under Customers. Fill out the form using the same customer, amount, and payment date as the payment. Choose Save and Close. Return to the report of Open Invoices. Locate the unapplied payment, then choose the date to open. Check the open invoice under Outstanding Transactions. Choose Save and Close. Check your Open Invoices report to see if there are any more Payment transactions. If there are more than one, repeat step 2 for each one. Now, rerun your Profit and Loss report. The Unapplied cash payment income should no longer be visible.