Move names between Customer, Vendor, and Employee lists in QuickBooks Online

QuickBooks Online prevents duplicate names across different lists to keep your data accurate and prevent errors with transactions, reports, or check printing. For this reason, unique identifiers are necessary when modifying an individual's role. 

You can move names between Employee, Vendor, and Customer lists by creating a new entry with a slightly different name and updating transactions tied to that person.

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Understanding Roles: Customer, Vendor, and Employee

In QuickBooks, the distinction between a customer and a vendor is based on the direction of money. 

• Customers: an individual or business that pays you for goods or services, representing your source of income.
• Vendors (or vendors): a person or company that you pay for business-related expenses, such as rent, utilities, or raw materials.
• Employees: an individual who performs work for your business and is managed through your payroll system.

While both vendors and employees receive payments from you, payments to employees are specifically classified as paychecks and may involve tax withholdings and payroll-specific reporting.

Change an Employee to a Vendor

To move someone from your payroll list to your vendor list, you must create a new profile and address any existing paychecks.

Set up a new Vendor name

1. Go to All apps , then Expenses & Bills, then Vendors (Take me there).
2. Select New Vendor.
3. Enter the vendor's name in the name fields. In at least one of the fields, enter a name that is one keystroke different from the original Employee name (e.g., use "John J. Doe" if the Employee name was "John Doe").
4. Enter the remaining contact information.
5. Select Save.

Handle existing transactions

The next steps depend on whether you’ve already processed paychecks for this person.

If you didn’t create paychecks:

• Edit all transactions currently listed under the Employee name and reassign them to the new Vendor name.
• Delete the Employee name if it’s no longer needed.
• Edit the Vendor name to the preferred format if the old name was deleted.

If you created paychecks and shouldn't have:

• Delete all paychecks listed under the Employee's name and recreate them as checks to the Vendor's name.
• File any necessary amended returns.
• If you withheld taxes, you may need to refund the individual and contact relevant agencies for a tax refund.

Change a Vendor to an Employee

Follow these steps to move a name from your Vendor list to your payroll.

1. Go to All apps , then Payroll, then Employees (Take me there).
2. Select Add an employee.
3. Enter a name that’s one keystroke different from the existing Vendor name.
4. Enter their email address and hire date, then select Add employee.

If this person should have received paychecks but they were created as regular checks under their Vendor name:

1. Run a Transaction List by Vendor report to identify all accounts, dates, and amounts linked to the vendor.
2. Edit each transaction linked to the vendor and save them under the new employee name.
3. Once transactions are updated, delete the original Vendor name.
4. Edit the employee name if needed.

Change a Customer to a Vendor:

Use this process if a client becomes a vendor.

1. Go to All apps , then Expenses & Bills, then Vendors (Take me there).
2. Select New Vendor.
3. Enter the vendor's name in the name fields. In at least one of the fields, enter a name that is one keystroke different from the original customer name (e.g., use "John J. Doe" if the Employee name was "John Doe").
4. Enter the remaining contact information.
5. Select Save.

To see all relevant accounts, dates, and amounts tied to the former customer, and now vendor:

1. Run a Transaction List by Customer report. 
2. Edit each linked transaction and save it to the new Vendor name.
3. Delete the original Customer name.
4. Edit the Vendor name if needed.

Change a Vendor to a Customer:

1. Go to All apps , then Customer Hub, then Customers (Take me there).
2. Select New Customer.
3. In the Last Name field, enter a name one keystroke different from the Vendor name.
4. Enter the remaining contact information. 
5. Select Save.
6. To identify linked accounts, dates, and amount for the former vendor, and new customer:
7. Run a Transaction List by Vendor report.
8. Edit each transaction and save it under the new Customer name.
9. Delete the original Vendor name.
10. Edit the Customer name if needed.

Related links

• Move your lists to QuickBooks Online
• Add new customers in QuickBooks Online
• How to add an employee to your payroll
• Add a vendor or contractor