How to Find Unapplied Payments in QuickBooks

QuickBooks-how-to-find-unapplied-payments

Why does QuickBooks show unapplied payments?

The credit memo, journal entry, and any other payments are in place, then why does QuickBooks show unapplied payments? It is important to understand the reason behind the appearance of unapplied payments to really get to the core of the matter. Here are a few reasons why unapplied payments appear in QuickBooks:

  • Unapplied payments occur when credit memos are not linked to the invoice.
  • Another reason can be unlinked journal entries.
  • Any other payments that are not linked to the invoice can also make QuickBooks show unapplied payments.

How to find ‘Unapplied Payments’ in QuickBooks in A/R aging online:

  • First of all open the Customer Center in QuickBooks on your computer.
  • Open the customer file.
  • In the customer file, locate for the specific invoice that is showing you the unapplied payments.
  • Locate for the option ‘Receive Payment’ and click on it.
Note: At this step, QuickBooks will automatically open the receive payment section and apply the invoice to the unapplied transaction.
  • Carefully inspect the details of the invoice. Please ensure that there are no other unapplied credit balances before you save the changes.
  • You will now find that the transaction amount is displayed as zero.
  • Click on the ‘Save’ option.
  • Once saved, click on ‘Close.’

The above steps should now show the customer balance accurately and the unapplied payments should now get settled. For future use just have a habit of linking the credit memo, journal entry, and any other payments in QuickBooks.

How to find ‘Unapplied Payments’ in QuickBooks Enterprise, QuickBooks Premier, and QuickBooks Pro:

Please follow these steps:

  • Click on ‘Customer.’
  • Then open the ‘Receive Payment’ option.
  • Here type in the customer name that you wish to find the unapplied payments of.
  • Now you need to click on the ‘Discounts and Credits’ option.
  • The Discount window will open on your computer screen.
  • Here in this window in the invoice apply the unapplied credit balance, and you will see that QuickBooks has automatically sorted the credit balance.
  • Carefully inspect the details of the invoice.
  • Ensure that there are no other unapplied credit balances before you save the changes.
  • You will now find that the transaction amount is displayed as zero.
  • Click on the ‘Save’ option.
  • Once saved, click on ‘Close.’

In case of unapplied Cash Payments on your Profit and Loss

When you record the payment before creating the sales form and enter the payment without matching with sales forms. You have to do the following steps to find and fix QuickBooks unapplied payments.

The steps are:-

  1. Firstly, run the Open invoice report
    1. In QuickBooks, go to the Reports menu
    2. Then in the field Find report by name
    3. Enter the Open invoices
    4. You have to set the period of the report
    5. After that, click on Run Report
    6. Go to the column Transaction Type
    7. In this, find the transaction that is listed as Payment
    8. If this Payment transaction matches the open invoice then proceed further to Step 2 otherwise jump to Step 3.
  2. In the case of Payment, the transaction matches an open invoice
    1. You have to select the payment date to open it 
    2. Then go to the Outstanding Transactions option
    3. Check for the open invoice
    4. After that, click on Save and close and you are done.
  3. In case the payment doesn’t match an open invoice
    1. Click on the New option to create the new one
    2. Go to the Customers 
    3. Further, select the Invoice option
    4. Fill the form with  the same customer details like amount, date of the payment
    5. Click on the Save and Close button
    6. Now go to the Open Invoices Report again
    7. Locate the unapplied payments in QuickBooks
    8. Then click on the date to open it
    9. Go to the Outstanding Transactions option
    10. In this, check out the open invoice
    11. After this, hit on Save and Close button
    12. You have to check the open invoices report to check if there are any other transactions that are listed as Payment
    13. If yes then go to Step 2 for each payment.

The above steps should now show the customer balance accurately and the unapplied payments should now get resolved. For future use just have a habit of linking the credit memo, journal entry, and any other payments in QuickBooks Enterprise, QuickBooks Premier, and QuickBooks  Pro- depending on which one you are using.

Scope of Service:

This article aimed to support you fully with finding and sorting the unapplied payments in QuickBooks. If you are still facing any doubts and need further assistance, feel free to contact us, we are happy to support you.

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FAQ

  1. How can I run the open invoice report to find the unapplied payments in QuickBooks?

    1. In QuickBooks, click on the Reports
    2. From the drop-down menu, select Find report by name
    3. Then mention Open Invoices
    4. The period of the report needs to be set to run it
    5. Click on Run Report to find out unapplied payments
    6. In the Transaction Type column
    7. Check for the transaction that is marked as the Payment.

  2. What if I want to set it to apply after finding the unapplied payments in QuickBooks?

    If you are looking for an unapplied payment that won’t match to the invoice then you have to create the transaction to fix the unapplied payment after finding it. The steps are:-

    1. Click on the New option
    2. In the Customers option, click on the Invoice
    3. Fill the form with the same customer, date, and amount
    4. Then click on Save and Close button
    5. Open the Invoices report
    6. Now find the unapplied payment 
    7. Select the date to open that you have created
    8. Go to the Outstanding transactions option
    9. Check the invoice that you opened
    10. Then click the Save and Close button

  3. What to do when I find the unapplied payments in QuickBooks and fix it also?

    When you are done with finding and fixing your unapplied payments in QuickBooks then you have to run your report in which these payments are causing problems. This way you are able to check if there is any other problem in the report related to unapplied payments or any other problem. If a problem is caused then fix it or you can also connect with the QuickBooks helpdesk for any query and problem.

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