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realtorgrammer
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?

 
Solved
Best answer January 13, 2020

Best Answers
JaneD
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

Rasa-LilaM
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

IamjuViel
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

10 Comments 10
JaneD
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.

realtorgrammer
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.

Rasa-LilaM
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.  

 

realtorgrammer
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?

 

IamjuViel
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.

realtorgrammer
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

maxpowers60
Level 1

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?

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?

Angelyn_T
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?

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:

 

  1. Click on Sales at the left pane, then go to the Customers section.
  2. Go to the small gear icon, then check the box beside Include inactive.
  3. Locate the customer's name, then select Make Active.
  4. Go to the Transaction List section.
  5. Open each payment, then delete it from there.

After deleting the payment, make the customer inactive again.

 

  1. Select Edit beside New transaction.
  2. Tap on Make inactive.
  3. Hit Yes, to confirm the action.

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!

KimL2
Level 1

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?

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.

Candice C
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?

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

 

  1. Go to the Customers menu.

 

 

       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

  1. Go to the Vendors menu. ​​​​​​
  2. Pick the Vendor Center option. 

 

 

       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: 

 

 

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! 

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