Hello. @coey03. Thank you for joining us here in the Community. It's wonderful to have you.
Entering in a correction for the vendor is my specialty. I can walk you through the steps on how to submit a Vendor Credit. Let's get to work:
1. Go to Expenses and choose Vendor.
2. On the right side choose the drop-down arrow next to New Transactions.
3. We will be clicking on Vendor Credit.
Note: Here you'll need to enter in the information needed for this to be taken off any of the remaining balance towards the vendor.
4. Once your information is in, choose Save and Close.
To make sure this goes towards the AP you'll need to run a report in the charts of account for this account. It'll also show the amount that's been removed and subtracted against the balance in the specific vendor.
I also have an article to assist with a better understanding of Applying Vendor Credit.
I strive to get my customers the help they need so they're back to business as soon as possible. Please don't forget us here in the Community. Come again!
I've done this with settled debt - vendor credit/other income/apply credit to bills - but my question is with the vendor's 1099. The vendor's 1099 is showing the amount for those bills (paid with the vendor credit) as a payment. Is that correct?
You're right, Catherine243.
It will be reported to their 1099. It tracks cash and checks paid to the vendor from the company. These types of payment below are excluded from the 1099-MISC form:
Payments to 1099 vendors made via
Check out these article for more information:
Let me know if you need more help in managing your 1099s.
Hi there, @Catherine243.
Any payments made through checks, bills, and expenses will show up in Box 7 if the expense accounts are mapped for 1099 setup. While we can't recommend if the credit should be mapped to an account that is used for your 1099, I suggest consulting your accountant to help ensure you are posting the amounts to the right accounts.
If you don't have one, set up a live video appointment or message our QuickBooks-certified bookkeeper. Learn more about QuickBooks Live Bookkeeping.
To guide you more in preparing 1099, you can check these resources:
Drop me a comment below if you have any other questions. Have a great day ahead.