@john-pero please let me try to explain myself better with an example, so you can please let me know if it is right or not.
I think I can have 1 bill with 2 lines, one for each each category (contractor and travel expenses)
1. Create 1 bill for vendor X with a total amount, i.e 150 USD.
In the bill create 2 lines:
line a: fee for days worked with category "contractors" i.e 100 USD
line b: travel expenses and/or per diem with category "travel expenses" i.e 50 USD
3. Submit the ACH payment in the business bank account for 150 USD
4. Once the transaction is available in "banking", match it with the bill created above.
In this case, contractors account will be increased by 100 USD, travel expenses will be increased by 50 USD
5. In the end of the year, when I am ready to submit a 1099 in QB for that vendor, I will map the accounts for 1099 in the step 2, "Box 7: Nonemployee compensation" with account "Contractors". So, in the box 7 of the 1099, I will have only 50 USD and all payment made under category "travel expenses" will be excluded in box 7.
