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Accounts Payable Used for Vendors - 1099 Issue?

Hi,

 

I've been paying vendors by recording an A/P and writing checks with the other side of the entry being Accounts Payable (debit entry). I'm doing test runs with the 1099 Wizard to see if it will pickup the vendors. It does identify them, but not the A/P account since they were not recorded into an expense account. Is there anyway to have the A/P account show up ? I tried "Show all accounts" but A/P is not listed in the 1099 Wizard when mapping accounts. These are not necessarily expenses and I don't believe expensing would be appropriate, they're large amount as well.

 

Thank you.

Solved
Best answer 09-21-2019

Accepted Solutions
QuickBooks Team

Re: Accounts Payable Used for Vendors - 1099 Issue?

Hello, @n1njah.

 

Let me provide you with some information on why the accounts payable account are not included in your 1099 mapping.

 

To start with, an accounts payable account is a current liability account that QuickBooks automatically adds to your Chart of Accounts. It is the money you owe to your suppliers or vendors for the goods or services that you've received on credit. When you pay what you owe, it will decrease your accounts payable account and increase the specific expense account associated with the transaction.

 

You can view the transaction journal to view the accounts debits and credits of your vendor payments.

  1. Open a bill or check transaction.
  2. Click the Reports tab.
  3. Select Transaction Journal.

A1.jpg

Meanwhile, when you set up QuickBooks, each account that you add to your chart of accounts has the ability to be "mapped" to a tax line for use in preparing a tax return. This is the same with mapping the expense accounts you use to pay a 1099 vendor to the appropriate box on Form 1099-Misc.

 

To ensure that your vendor payments are included in your 1099 reporting, choose the expense account when writing checks or creating a bill.

 

Feel free to click the Reply button if you have other questions. I'm always here to help.

View solution in original post

1 Comment
QuickBooks Team

Re: Accounts Payable Used for Vendors - 1099 Issue?

Hello, @n1njah.

 

Let me provide you with some information on why the accounts payable account are not included in your 1099 mapping.

 

To start with, an accounts payable account is a current liability account that QuickBooks automatically adds to your Chart of Accounts. It is the money you owe to your suppliers or vendors for the goods or services that you've received on credit. When you pay what you owe, it will decrease your accounts payable account and increase the specific expense account associated with the transaction.

 

You can view the transaction journal to view the accounts debits and credits of your vendor payments.

  1. Open a bill or check transaction.
  2. Click the Reports tab.
  3. Select Transaction Journal.

A1.jpg

Meanwhile, when you set up QuickBooks, each account that you add to your chart of accounts has the ability to be "mapped" to a tax line for use in preparing a tax return. This is the same with mapping the expense accounts you use to pay a 1099 vendor to the appropriate box on Form 1099-Misc.

 

To ensure that your vendor payments are included in your 1099 reporting, choose the expense account when writing checks or creating a bill.

 

Feel free to click the Reply button if you have other questions. I'm always here to help.

View solution in original post

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