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Level 2

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

 
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Best answer January 13, 2020

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Highlighted
Moderator

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Hi there, realtorgrammer.

 

You'll have to inactivate the customer's name and recreate it as a contractor, so you can issue a 1099 form in QuickBooks Online (QBO).

 

  1. From the Sales menu, choose Customers.
  2. Locate and click on the customer's name.
  3. Click on Edit.
  4. Then, click on the Make inactive button.
  5. Select Yes to confirm the request.

You can now create the customer as a contractor.

 

Let me share this article about how add an independent contractors and track them for 1099s in QuickBooks Online.

 

You can enter transactions and create forms 1099-MISC.

 

We'll be around if you need anything else. Have a wonderful day.

View solution in original post

Highlighted
QuickBooks Team

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Glad to hear from you again, @realtorgrammer.


Thanks for following the steps provided by my colleague. To transfer the amounts, let’s manually enter them into your account.


Here’s how:

 

  1. Tap the Plus icon at the top and choose any of the following: Check, Expense, or Bill.
  2. This will open another page where you can enter the data.
  3. Enter the correct contractor’s name in the Payee field as well as the Payment account where you want to post the information.
  4. Go to the Category/Item Details section to record the account or item.
  5. Next, type in the amount and other information in the field boxes.
  6. Click Save and New to continue.


You’ll have to select a check or cash to record the payments. If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, the IRS requires you to exclude those amounts from your 1099-MISC forms.


For more information about the payments that shouldn't be reported, check out this article. It also contains a link to the IRS instructions for Form 1099-K: Exclude amounts.


If you have any concerns while working in the product, post them below. I’m happy to answer them for you. Have a great rest of the day.  

 

View solution in original post

Highlighted
QuickBooks Team

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Let me share additional information, @realtorgrammer.

 

Changing the status of your customer to vendor will not affect the reconciliation of your account register.  Only when you update the status of the amount and the posting bank account that the reconciliation report will also be change.

 

If the amount remain as is, you can mark the amount as reconciled (R) in your account register. 

 

Feel free to leave a comment below if you have other questions. I'm always here to help.

View solution in original post

6 Comments 6
Highlighted
Moderator

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Hi there, realtorgrammer.

 

You'll have to inactivate the customer's name and recreate it as a contractor, so you can issue a 1099 form in QuickBooks Online (QBO).

 

  1. From the Sales menu, choose Customers.
  2. Locate and click on the customer's name.
  3. Click on Edit.
  4. Then, click on the Make inactive button.
  5. Select Yes to confirm the request.

You can now create the customer as a contractor.

 

Let me share this article about how add an independent contractors and track them for 1099s in QuickBooks Online.

 

You can enter transactions and create forms 1099-MISC.

 

We'll be around if you need anything else. Have a wonderful day.

View solution in original post

Highlighted
Level 2

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

After I make inactive as a customer and create in contractors, how do I transfer the amounts that were paid for 2019 so i can create the 2019 1099?

thank you.

Highlighted
QuickBooks Team

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Glad to hear from you again, @realtorgrammer.


Thanks for following the steps provided by my colleague. To transfer the amounts, let’s manually enter them into your account.


Here’s how:

 

  1. Tap the Plus icon at the top and choose any of the following: Check, Expense, or Bill.
  2. This will open another page where you can enter the data.
  3. Enter the correct contractor’s name in the Payee field as well as the Payment account where you want to post the information.
  4. Go to the Category/Item Details section to record the account or item.
  5. Next, type in the amount and other information in the field boxes.
  6. Click Save and New to continue.


You’ll have to select a check or cash to record the payments. If you made any payments to contractors by credit card, debit card, gift card, or a third-party network like PayPal, the IRS requires you to exclude those amounts from your 1099-MISC forms.


For more information about the payments that shouldn't be reported, check out this article. It also contains a link to the IRS instructions for Form 1099-K: Exclude amounts.


If you have any concerns while working in the product, post them below. I’m happy to answer them for you. Have a great rest of the day.  

 

View solution in original post

Highlighted
Level 2

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Rasa-LilaM

 

I am getting ready to do the steps above.  Does this mess up my reconciliation reports I have already done?

 

Highlighted
QuickBooks Team

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Let me share additional information, @realtorgrammer.

 

Changing the status of your customer to vendor will not affect the reconciliation of your account register.  Only when you update the status of the amount and the posting bank account that the reconciliation report will also be change.

 

If the amount remain as is, you can mark the amount as reconciled (R) in your account register. 

 

Feel free to leave a comment below if you have other questions. I'm always here to help.

View solution in original post

Highlighted
Level 2

I have a customer that needs to be changed to a Vendor and I need to issue them a 1099. How can I change it?

Nevermind my reconciliation question.  Thank you for all your help

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