Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowSolved! Go to Solution.
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).
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.
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:
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.
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.
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).
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.
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.
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:
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.
Rasa-LilaM
I am getting ready to do the steps above. Does this mess up my reconciliation reports I have already done?
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.
Nevermind my reconciliation question. Thank you for all your help
I have made a customer inactive, but the payments are still active. How do I recreate the customer as a vendor and duplicate the payments made to him without them showing up twice?
I appreciate you for joining the thread, @maxpowers60.
I can help you with recording the vendor payments in QuickBooks Online.
To get started, you need to delete the payments linked to the customer's name. To do that, you need to make the customer as active temporarily. Then, re-inactivate it after removing the transactions.
Here's how to make the customer as active:
After deleting the payment, make the customer inactive again.
Once done, you're now ready to create the customer as a vendor/contractor. For your guide, I recommend checking out the instructions from this link: Add, edit, and inactivate contractors.
To recreate the payment, you can either enter a check or an expense transaction from the (+) New icon. For additional resources, I recommend reading this article about the difference between bills, checks, and expenses.
If you have any other follow-up questions about managing customer or vendor payments, please feel free to leave a comment below. I'm always here to help. Wishing you a good one!
I am in the same boat...need to change a customer to a vendor so that I can issue a 1099....but I don't have a "sales" menu in my quickbooks...or at least I am unable to find it. Tried "jobs" but that didn't work.
Good afternoon, @KimL2.
Thanks for joining in on this thread. It's my priority that you're able to change a customer to a vendor so that you can issue a 1099.
Since you're not able to see the "Sales" tab on the left-hand menu bar when using your QuickBooks Online (QBO) account, are you using a different QuickBooks product? (Example: QuickBooks Desktop)
If so, here's the correct steps on how to make a customer inactive and to add them as a vendor:
Make Customer Inactive
2. Select the Customer Center option.
3. Right-click on the customer name.
4. Press the Edit Customer: Job.
5. Put a check in the box next to Customer is inactive.
6. Hit OK.
Add as a Vendor
Note: You may need to change your vendor's name a little so that it won't refer back to the inactive customer. Here's a link that can help out: Change vendor, customer or employee name type.
3. Tap the New Vendor button.
4. Enter all the required information and hit OK when done.
That's all there is to it. Here are a few articles that may be able to help you and your business in the future:
How to modify your chart of accounts for your 1099-MISC and 1099-NEC filing
Understanding payment categories for the 1099-MISC and 1099-NEC
These details should do the trick. Let me know if you have any other questions or concerns. I'll always be around to help. Have a great day!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.