Why do I have unapplied cash payments?

Generally, this account appears when the date of a customer payment is before the date of the invoice. When that happens, it will cause an amount to be added to the unapplied cash payment income account by QuickBooks. It may also happen when a customer payment and an invoice are not applied to each other.

What does unapplied cash mean in accounting?

Unapplied Cash means all amounts paid by Account Debtors to the Loan Parties that are evidenced by checks that do not specifically relate to an internal invoice number of the Loan Parties and that have not been reconciled to a specific invoice number.