Vendor set up with the correct accounts to rebill to a customer

subs are vendors, and should be set as eligible for the 1099 reporting

use any expense account you wish for their payment, that account has to be mapped to the 1099 block 7 for reporting so only use it for that.  On the tax form the IRS calls it non employee expense so that is what I titled mine.

Turn reimbursed expenses on in preferences

1. Menu Edit>preferences>time & expenses> Company preferences Tab turn on reimbursed expenses and check mark that QB should track income for reimbursed expenses separately as income
2.  Open the chart of accounts, on the expense account you are using for the expenses from the vendor, select the income account to use.
3. Pay for the expense using that expense account (on the expense tab), and on the expense account line select the customer name and mark it billable.
4. On the customer invoice click the time/costs button, click the tab expenses, check mark the expenses to be brought to the invoice, click ok/save. Once they are on the invoice you can click in the total column for each and mark them up if desired.

You set up and use Two Sided items. You link the left side to Subcontractor Expense and the right side to Income.

You list the item on the Items tab of the payment to the subcontractor; you can Job Track it here = assign which Customer it is for, and as Billable or not. If Billable, when you are ready to Charge the customer, use Sales Receipt or Invoice and use the Add Time & Costs button; here are all the Billable charge.

That means you can use Service items for hauling, and use Qty for miles. You can use Noninventory Type items for Materials, such as quantity and price point is per Ton or per Yard, for gravel.

Set up more service items for different things that bill out at a different Price Point. That way, you avoid micro-managing More Accounts. And now you have Sales Reporting data, too. Using accounts manually doesn't give Sales Reporting or Profit reporting by Item.

Please see this in your sample file, from the No Company Open screen = Product-Based. Open Help and search on Work With Items, and Job Cost Tracking.

Please see my attachment.

I have another attachment that helps show why micro-managing the accounts and linking each one Expense account to each single Income account, is not only cumbersome for your financial reporting, but doesn't provide what you see in my attachment here.

I just sent out 1099's to my vendors this afternoon. One vendor asked that I remove the total amount showing in Box 3, because those were reimbursements for food/meals. 

Box 7 is correct with her labor, so no issues there. 

Do I need to set up a chart of accounts item for food/meals etc for Film crews that won't show up on her 1099 in the end? 

or am I correct that it shows up in her box 3, and she takes it from there? 

I also noticed that Overtime did not show on a couple of 1099's that went out as well. 

Is there a link to show us a list of what items go under which category, so that these get filed correctly?

Hi @kinetopictures676,

You're right in thinking that you need to create a different account for the food/meals for film crews. Also, it depends on how you mapped your expense accounts and to which boxes they appear. 

I have an article here that has a link for a PDF file from IRS which acts as a guideline for the 1099 boxes: About 1099 boxes.

If you'd like to make changes to a 1099 that's already sent, check out this article: Common questions about 1099s. 

In case you have additional concerns, post them below. I'll be sure to get back to you.