We are a radio station that routinely uses Trade to generate promotional items awarded to Contest Winners. Ex: Customer provides the prize (earrings, tickets, etc) and we provide the customer with advertising. No cash changes hands between us and the customer. The prize is then awarded to the Contest Winner. Each prize has a dollar value. How do I enter these transactions in QB Enterprise so that a 1099 is generated to all Contest Winners who have reached the $600 threshold?
Thank you!
Jenny
Recording this type of transaction can be tricky, @RadioRocks, but I'm here to help you navigate it accurately in QuickBooks Enterprise.
To begin with, please set up a vendor profile for each contest winner and mark them as Vendor eligible for 1099. This way, we can issue a 1099.
Here's how:
We'll also set up your client as vendor and customer. To avoid confusion, you can make one of the names slightly different. After that, let's create a dedicated barter account and item as a placeholder for the items you've received.
To record the transactions, you’d enter a sales receipt and a check to record the products or services you’re exchanging.
Entering sales receipt:
Entering a check:
Once done, simply issue another check or create a bill and bill payment to the contest winner to log the prizes they've won.
When you're all set up and ready, follow these steps to map your expense account to the correct 1099 box.
If you still further guidance in performing the procedures, I highly recommend consulting with an accountant or a QuickBooks Professional Advisor to ensure they are accurately recorded and reported.
Additionally, you might want to check out these articles to learn how to generate a 1099 report and make corrections to 1099-NEC or 1099-MISC forms:
If you encounter any challenges or have further questions as you work on this, please don't hesitate to reach out. The Community team is always available to assist you every step of the way, @RadioRocks.
Thank you so very much! You've been incredibly helpful!
You're welcome, @RadioRocks!
I'm glad that my colleague, @RogelioL, was able to help you with your concern about entering transactions related to promotional items awarded to contest winners.
If you have any further questions or need additional guidance as you work through these steps, feel free to click on the Reply button. Your proactive approach is commendable. We're committed to offering ongoing support. Take care!
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