All of us know that QuickBooks is accounting software that allows its users to keep all accounts -related information in a systematic manner. However, it is error-free software and relates the information automatically, but there are times when it reflects an error or a mistake related to entries of payments.
Many times it does happen that you receive a payment in advance, and the invoice is generated later, and it is being skipped to relate that payment with the invoice. But later, you create a new entry of payment received but forgot to delete the previous one. Thus the payment so received earlier and was entered previously is to be deleted in QuickBooks at the time of reconciliation.
In this article, we tried our best to make you understand the various possible ways by which you can check and delete the unapplied payments in QuickBooks.
There are two possibilities for unapplied payment
Advance payment received from a customer and is recorded in the books without creating an invoice or sales receipt.
Double entry of payment without getting it matched with an open invoice.
If you see any unapplied payments, you need to check if there is an open invoice that is open because it means its payment is yet to be received. And if you found any open invoice, the total amount of that invoice must be matched with the unapplied payments in your QuickBooks records. If the amount matches with the open invoice you need to follow some easy steps.
Let us understand how to resolve this step wise step
Step 1: Check the report of open invoices
A list of open invoices is to be run by following some easy steps
1) Go to Reports
2) Open Invoices are to be entered in the Find Report by the name field.
3) Report period is to be set thereafter Run Report is to be selected.
4) A transaction listed as a payment can be located in the Transaction Type Column.
Once the payment transaction gets matched with unapplied payment, you need to follow step no. 2; otherwise, step no3.
Step 2: when the payment transaction gets matched with an open invoice.
- You need to open the payment by selecting its date.
- You need to check the invoice, which is showing open under the Outstanding Transaction.
- You need to click on Save and Close.
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Step 3: when the payment transaction does not get matched with an open invoice.
You need to create a transaction in case your payment transaction does not match with an open invoice.
- You need to click on Select along with New.
- Invoice is to be selected under customer option.
- You need to enter the correct information of customer name, date, and amount of payment received.
- Click on the save and close option.
- You need to check again open invoice report
- You need to check and click unapplied payment for its date to open.
- Open Invoice is to be checked under Outstanding Transaction.
- Now you need to click on Save and Close.
Open invoices are to be checked again to see if there is any more unapplied payment or not. If you found any more unapplied payment, then you can follow step no. 2 again.
Profit and loss reports can be opened now. You will not see any unapplied payments more.
- You need to run and open the Profit and Loss Report page.
- The amount can be clicked in the Unapplied Cash Payment Income.
- Payment is to be clicked under Transaction Type.
- The Invoice is to be located.
- Now save, and Close options are to be clicked.
In QuickBooks, unapplied payments are duplicate transactions that are being entered mistakenly. You can delete them from the deposit transactions section or from the unapplied payment section. It is to be noted that the payment that you are deleting must be duplicate. You must be very careful while deleting as it will affect your overall Profit and loss report.
And it is very clear when you follow these steps, and you will not see any unapplied payments in QuickBooks anymore. However, if you get stuck anywhere in the process of deleting unapplied payment in QuickBooks, you must take the help of our QuickBooks support team.
In the last, we recommend you always link the received payment with sale invoices; otherwise, it will reflect an unapplied payment. As there is no auto-provision of stopping payments from reflecting as unapplied payment. So better it is to take care while entering the payments rather than to hold the head while deleting the unapplied payments in QuickBooks.