What Is Unapplied Cash Bill Payment Expense?

Unapplied cash bill payment expense refers to the payment that hasn’t been matched as an actual expense. It happens when cash is paid, but the expense isn’t linked to a specific bill, making it unapplied.

For example, if a company pays $500 to a supplier in advance but the supplier hasn’t yet entered the invoice into the system, $500 is an unapplied cash expense.

It reminds us of sending money to a friend before having dinner (you know who you are).