How to Fix Unapplied Payments in QuickBooks Online & Desktop?

How to Fix Unapplied Payments in QuickBooks Online & Desktop?

Unapplied cash payment income can display on your report when the customer prepaid you and then entered the payment before generating the sales form (sales receipt or invoice). In addition, if you enter the payment without even matching it to the sales forms, you might see unapplied cash payment income on the profit and loss report. It can also include other types of unapplied payments such as for vendors or customers. If you want to fix the unapplied payments, this guide is for you. Here, we will teach you how to fix unapplied payments in QuickBooks Online and QuickBooks Desktop in different ways.

How to Fix Unapplied Cash Payments in QuickBooks Online?

If you are facing issues related to unapplied cash payments, you can resolve this problem for different purposes by performing numerous methods. For instance, you can fix the issue for the unapplied vendor payments & credits and unapplied customer payments & credits. In addition, you can fix the unapplied payments to invoices or by using the profit and loss report.

In case you still face issues related to the unapplied payments in QuickBooks Online, you can run the verify and rebuild data utility or use QBO in an incognito mode. Let’s find out how to fix unapplied payments in QuickBooks Online or desktop.

Method 1: QuickBooks Fix Unapplied Vendor Payments and Credits

There can be occasions when you make mistakes for the vendor’s payments. If you want to fix the unapplied vendor payments and credits, this can be done through the Accountant menu. Let us help you with more details:

  • Click on the “Accountant” menu from the top menu bar.
  • Then, click on the “Client data Review” option.
  • After this, click on the “Fix Unapplied Vendor Payments and Credits” option.
  • Now, switch to the “Vendor’s” tab.
  • From here, you can choose the relevant “Accounts Payable” account.
  • Then, select the relevant vendor.
  • Select the check from the “Payment/Credits” column.
  • After this, select your bills from the “Bills” column.
  • Once done, click the “Apply” button.
  • In case you pick the wrong transactions then you can click on the “Un-apply” button. This will undo the link.
  • Click the “Save” button.

Now you complete the procedure for QuickBooks to fix unapplied vendor payments and credits. By executing these steps, you can easily fix the wrong or unapplied vendor payments and credits in QuickBooks Desktop.

You can also use the Transaction List by Customer or Transaction List by Vendor. This will help you to see the unapplied payments. Remember to include a Paid section from the Customize Report screen. Here are the steps for that:

  • Click on the “Reports” menu.
  • Select the “Customers & Receivables” option. You can also choose the “Vendors & Payables” option.
  • Choose the “Transaction list by Customer” or “Transaction list by Vendor” option.
  • After that, choose the “Date” button.
  • Click on the “Customize Report” option located in the top left.
  • When you see the “Display” section, enter “Paid” under the “Columns” field.
  • Now, you can place the check mark located near “Paid”.
  • Then, hit the “OK” button.

This is how you can view the unapplied payments in the report. Thereafter, you can implement the solution to fix it.

Method 2: Fix Unapplied Customer Payments and Credits in QuickBooks Online

If you have received the payments from your customers, you can apply or fix it by using the Fix Unapplied Payments and Credits tool. This tool can be used when you are having the credit memo or if you have recorded a payment that needs to be applied to an open invoice. 

In addition, the invoices you will see will be the open invoices(Create Invoice in QuickBooks). If required, you can unlink your payment before it appears in the Fix Unapplied Payments and Credits tool. Find out how you can unlink the payments in the following steps:

  • Click on the “Customer” tab.
  • Then, select the “Customer Center” option.
  • Here, you need to find the parent customer.
  • After that, switch to the “TYPE” section and double click any payment in order to open the transactions.
  • Now, remove the checkmark for the invoice you want to unlink the payment from.
  • Click the “Save and Close” button.

After finishing these steps, you can use the Fix Unapplied Payments and Credits tool so you can apply for the payment or credit.

Method 3: Fix Unapplied Cash Payments in QuickBooks Online

To fix the unapplied cash payments in your QuickBooks Online, the Profit and Loss report is required to run. By using a cash method, you can run this report and fix the unapplied cash payments. Thereafter, you can check if your payment matches the open invoices by running the Open Invoice report. Let’s learn how to fix unapplied cash payments in QuickBooks Online in detail:

Run the Profit and Loss Report

By running the profit and loss report, you can check for the unapplied cash payment income so you can match it with the open invoice.

  • Click on the “Reports” menu.
  • Then, select the “Profit and Loss” option.
  • Choose the “Report Period” option.
  • Also, select “Cash” from the “Accounting Method”.
  • Hit the “Run Report” option.
  • From the “Income” section, you can select the amount for a “Unapplied Cash Payment Income” option.

At this point, you will find the information for the unapplied payment in the Transaction Report. You can verify whether your payment matches the open invoice or not.

Run the Open Invoices Report

To check your payment, you can use the Open Invoices report. Have a look at the following steps to understand better:

  • Open the “Reports” tab.
  • Then, search for the “Open Invoices” using the search field.
  • After this, click on the “Report Period” option.
  • Now, select the “Run Report” button.
  • From the “Transaction Type” section, find the transaction mentioned as a payment.

If your payment matches with the open invoice then you can choose the payment date in order to open the transaction. Thereafter, you can choose the invoice.

Method 4: Fix the Unapplied Cash Payments to Invoice

If you are sure that the payment is not applied to the invoice then you can fix this issue. All you have to do is apply the unapplied payment to the open invoice. Read more to know how to fix unapplied payments in QuickBooks Online:

  • Go to the “Profit and Loss” report.
  • Then, click on the “Amount” from the “Unapplied Cash Payment Income” option.
  • Click on the “Payment” option from the “Transaction Type” option.
  • Find out the invoice.
  • Once done, select the “Save and Close” button.

If the deposits are duplicated transactions then you can delete them one by one. This can be done either from the Unapplied Cash Payment or Deposit Transaction. You have to make sure that you select the correct affected account when deleting the duplicate transactions from the Unapplied Cash Payment.

Method 5: Fix Unapplied Cash Payment Income on the Profit and Loss

As you run the Profit and Loss report with a cash method, you may spot the Unapplied cash payment income. This type of account is generally created by QuickBooks so it can report the tax. Though you can resolve this problem.

To fix the unapplied cash payment income, you need to use the Open Invoices report. Thereafter, you can check if your payment transaction matches the open invoice. In case it does not, we will help you to resolve this. Read more on how to fix unapplied payments in QuickBooks Online:

Step 1: Use the Open Invoices Report

  • Click on the “Reports” menu.
  • Then, type “Open Invoices” in the field of “Find report by name”.
  • Here, you can choose the report period.
  • Press the “Run report” button.
  • Now, find the transaction specified as payment from the “Transaction Type” section.

Step 2: If the Transaction Matches with the Open Invoice

  • Choose the “Payment Date”. This will open the invoice.
  • Switch to the “Outstanding Transactions” section to check your open invoice.
  • Click the “Save and Close” button.

Step 3: If the Transaction Does Not Match with the Open Invoice

  • When transactions don’t match, you can create a new one. For this, click on the “+New” button.
  • Under the “Customer” section, choose the “Invoice” option.
  • At this point, you can add the required details regarding the same customer, amount, and payment date.
  • Click the “Save and Close” button.
  • Then, open the “Open Invoices” report.
  • Here, you need to locate your unapplied payment.
  • After this, choose the date to open the unapplied payment.
  • Once done, check an open invoice. This can be done from the “Outstanding Transactions” section.
  • Click the “Save and Close” button.

To find more transactions mentioned as payment, you can check by using the Open Invoices report. If you find any payment then follow the same procedure to fix the unapplied cash payment income.

Method 6: Fix Unapplied Vendor Payments and Credits using Verify and Rebuild Data Utility

When you are facing issues related to unapplied payments, you can run the Verify and Rebuild Data Utility. This will help you to detect the issues and resolve them. Let’s see how to do this:

  • Make sure all the windows are closed on your computer.
  • Then, open the “File” menu.
  • After this, select the “Utilities” option.
  • Choose the “Verify Data” option.
Unapplied Vendor Payment

In case you receive any error message stating Your data has lost integrity then you can continue following these steps to fix the error.

  • Open the “File” menu again.
  • Select the “Utilities” button.
  • Click on the “Rebuild Data” option.
  • Click the “OK” button when prompted for the data backup.
Rebuild Data

When you receive the message stating Rebuild has completed, click on the OK button. As you complete the steps for running verify and rebuild data utility, you can check if the unapplied payments have been fixed.

Method 7: Fix Unapplied Payments by Clearing the Browser’s Cache

When you try to use the unapplied payments to the open invoice, you may also find the QuickBooks Online lagging. To resolve such bugs, you can try using QuickBooks Online in a private window. The private window does not store any data such as cache and cookies and thus, you can easily access the unapplied payments in QuickBooks Online.

Private or Incognito windows can be accessed in different browsers such as Google Chrome, Mozilla Firefox, and others. To access the incognito mode directly, you can use the shortcut keys stated below:

  • Google Chrome Browser: Press down the “Ctrl + Shift + N” keys.
  • Mozilla Firefox Browser: Press the “Ctrl + Shift + P” key combination.
  • Internet Explorer Browser: Use “Ctrl + Shift + P” keys.
  • Safari Browser: Press down the “Command + Shift + N” key combination.

If this method works effectively, you can immediately clear your history, cache, and cookies of the regular browser. This will allow you to access QuickBooks Online without facing any issues.

In a Nutshell

If you want to apply for unapplied payments in QuickBooks, this can be done in different ways. Here, we have shared several methods to fix the issue for the unapplied vendor payments & credits and unapplied customer payments & credits. We hope you have understood how to fix unapplied cash payments in QuickBooks Online and QuickBooks Desktop.

Apart from this, we have prepared other guides on QuickBooks you may be interested in. Check them out: 

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