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Kimberly74
Level 2

Quickbook Desktop Vendors

I just took over an account and was in the process of doing their 1099s.  I came across a vendor that was paid cash for subcontractor work and the total amount paid to this subcontractor was incorrect because there were payments made to "Cash" and not the subcontractors name.  I went to back out the transactions in order to reclassify them and appears I messed up.  The original postings went through "bill paying" under "Cash" vendor and checks were cut.  I changed the "Vendor name" to the persons name - cash.  When I did that it caused the original vendor to have a credit of that amount as well as the new vendor I created.  Now it shows that the new vendor I created has bills to pay and the original vendor has checks to be applied to bills. What is the best way to get this all to balance out without having to re-reconcile the bank statements?  Or should I just void/delete everything and re-record checks and then re-reconcile?

Solved
Best answer January 24, 2021

Best Answers
Mark_R
QuickBooks Team

Quickbook Desktop Vendors

Your confusion ends here, @Kimberly74.

 

Allow me to fill you in on everything about changing the vendor name connected to the transactions.

 

The possible reason why your newly created vendor had a credit is that you directly change the vendor name on the bill payment. When you change a vendor to the bill payment, this will lead to the original vendor having an open bill. In that case, you'll need to apply the checks to the open bill transaction of the original vendor. Then, consider deleting the bill payment associated with the new vendor to get rid of the credit.

 

Most importantly, I still recommend checking with your accountant for more guidance. They may add suggestions based on what's more suitable for your business and to your books.

 

Once you already fix the vendor balances and the reconciliation, you can now proceed with filing 1099s in QuickBooks Desktop. For more guidance, feel free to check out this article: Create and file 1099s with QuickBooks Desktop.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. 

View solution in original post

1 Comment
Mark_R
QuickBooks Team

Quickbook Desktop Vendors

Your confusion ends here, @Kimberly74.

 

Allow me to fill you in on everything about changing the vendor name connected to the transactions.

 

The possible reason why your newly created vendor had a credit is that you directly change the vendor name on the bill payment. When you change a vendor to the bill payment, this will lead to the original vendor having an open bill. In that case, you'll need to apply the checks to the open bill transaction of the original vendor. Then, consider deleting the bill payment associated with the new vendor to get rid of the credit.

 

Most importantly, I still recommend checking with your accountant for more guidance. They may add suggestions based on what's more suitable for your business and to your books.

 

Once you already fix the vendor balances and the reconciliation, you can now proceed with filing 1099s in QuickBooks Desktop. For more guidance, feel free to check out this article: Create and file 1099s with QuickBooks Desktop.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. 

View solution in original post

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