Where does a cash-basis Profit and Loss report show customer payments that haven't been applied to an invoice?

The cash-basis Profit and Loss report reflects income and expenses based solely on cash flow, meaning it captures transactions when cash is actually received or paid out. When a customer makes a payment that hasn't yet been applied to an invoice, this represents cash that the business has received but has not yet been associated with any specific income or revenue account.

The term "Unapplied Cash Payment Income" accurately describes this situation. It denotes the amount of cash received from customers that remains unallocated to any invoices, thus showing up on the Profit and Loss report as it constitutes actual cash flow into the business, even though it is not yet recognized as revenue linked to specific services or goods sold.

This is particularly important for maintaining accurate records in cash-basis accounting, where recognizing revenue is based on receipt rather than the completion of the transaction (i.e., invoicing). Other terms, while related, do not capture this specific scenario as accurately as "Unapplied Cash Payment Income" does.