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How to record 1099 eligible payments included in a bulk General Journal starting balance entry?

We switched software to QuickBooks Desktop mid-year. The accountant who did this entered account balances as General Journal entries at the time of the switch. There are some payments from within the General Journal entry that I need to map to the 1099 wizard. I tried posting them to and from the clearing account, but the clearing account isn't a option for 1099 mapping. Would love a suggestion for how to record these 'old' payments, already accounted for in the General Journal entry, so they show up on the 1099. Thank you!

Best answer 01-16-2019 12:42 PM

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Re: How to record 1099 eligible payments included in a bulk General Journal starting balance entry?

Journal Entries are best avoided in QB when Names are part of the entry; you avoid them for AR, AP, for QB inventory, for QB sales, sales taxes, and QB Payroll. They just bypassed cash vs accrual basis. And you see the problem = they Violated the Source Name and Target Name requirements. In other words, you have no Payee. Whoever did this, does not Understand QB very well.

 

They should not have Names here. It's that simple.

 

For you to fix that, let's assume this is Expense entries. Remove Names. That doesn't apply here.

 

Now you want to use a Clearing Bank like this:

 

Banking menu > Write Check. Put the Vendor name here, and date the check Dec 31, 2018, and only do this as long as you did not pay by credit card or PayPal or or even Debit Card. These other payment Types are reported by the financial agent via 1099-K and not by you. You report what you paid in cash or check.

 

You will use Two accounts that are Other Expense Type. Make a Parent Level and it is named Vendor Reporting. Make two Subaccounts; one is named Paid and one is named Cleared.

You will use the details of the check like this:

Paid subaccount <== enter the Total here

Cleared subaccount<== enter that same amount as negative.

 

Hit the Recalc button. Now each transaction is $0 and the expense is a direct offset to 0, too.

 

You can do all of that on one bill for each name, instead of Clearing Bank. That's up to you and what you would like to have for reference.

 

Map only the "Paid" other Expense Subaccount, for purposes of 1099-Misc reporting.

1 Comment
Established Community Backer ***

Re: How to record 1099 eligible payments included in a bulk General Journal starting balance entry?

Journal Entries are best avoided in QB when Names are part of the entry; you avoid them for AR, AP, for QB inventory, for QB sales, sales taxes, and QB Payroll. They just bypassed cash vs accrual basis. And you see the problem = they Violated the Source Name and Target Name requirements. In other words, you have no Payee. Whoever did this, does not Understand QB very well.

 

They should not have Names here. It's that simple.

 

For you to fix that, let's assume this is Expense entries. Remove Names. That doesn't apply here.

 

Now you want to use a Clearing Bank like this:

 

Banking menu > Write Check. Put the Vendor name here, and date the check Dec 31, 2018, and only do this as long as you did not pay by credit card or PayPal or or even Debit Card. These other payment Types are reported by the financial agent via 1099-K and not by you. You report what you paid in cash or check.

 

You will use Two accounts that are Other Expense Type. Make a Parent Level and it is named Vendor Reporting. Make two Subaccounts; one is named Paid and one is named Cleared.

You will use the details of the check like this:

Paid subaccount <== enter the Total here

Cleared subaccount<== enter that same amount as negative.

 

Hit the Recalc button. Now each transaction is $0 and the expense is a direct offset to 0, too.

 

You can do all of that on one bill for each name, instead of Clearing Bank. That's up to you and what you would like to have for reference.

 

Map only the "Paid" other Expense Subaccount, for purposes of 1099-Misc reporting.