I appreciate your patience as we troubleshoot this issue in QuickBooks Online (QBO). From what you've described, there is an error in categorizing transactions. Let's resolve this for a smooth transaction.
We need to create Vendor Credit to make sure that we can link together both with the Bank Deposit using Pay Bills. And if we follow those instructions properly, it should not be posted in Unapplied Cash Bill Payment Expense. There are two reasons why there is an amount shown on the Unapplied Cash Bill Payment Expense account.
- A bill payment for a vendor is recorded before entering the bills
- If you entered bill payments without matching them to bills
And I recommend redoing the process by deleting and reentering it.
For more details, regarding on Unapplied Cash Bill Payment Expense that shows on your transaction you can check this article to follow some steps on how to fix this: What to do if you see unapplied cash bill payment expense on your profit and loss.
In addition, you can explore these articles to learn how to track your cash flow and how to view and edit transactions with your vendors in QBO:
I'm here 24/7 to assist you with your Banking Transactions or any QBO-related concerns. Have a great one!
