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QuickBooks® Tips

YEAR-END REPORTING ADJUSTMENTS FOR 1099-MISC

The Dilemma: You paid a Vendor cash or you reimbursed an employee who made a payment to a Vendor.  Now you want it to reflect on the Vendor’s 1099 for the total amount paid to them for reporting purposes.

HOW TO CORRECT A 1099 REPORT TO THE PROPER VENDOR:

The Vendor is showing $200.00 less on their 1099 report because the check was written to an employee to reimburse them for a payment to a Vendor (or cash was handed to them).

• Go to: Company (gray menu bar)/Make General Journal Entries.
• Date should be 12/31/2009 (or year-end date you are correcting).
• On the first line under the Account column, choose the expense account to which you made the original expense.  In the Debit Column put the Amount Paid and in the Memo section put “ To correct amount paid to proper Vendor.” Now, in the Name Column put the NEW (correct) name of the Vendor who should have the amount added to their 1099 report.
• On the second line under the Account Column, choose the same expense account as the first line.  In the Credit Column, put the same amount as the first line, and in the Memo section copy the same memo as the first line.  NOW, under the Name Column put the Vendor name that the reimbursement check was written to (or wrong Vendor name).

Note: the correct Vendor will be a Debit and the wrong Vendor name will be a Credit. The journal entry is to the same account.  You are only changing who the amount should be for by changing the Vendor name.

• Click on Save & Close.
• After completing this, you will need to generate the 1099 report again to see the corrected changes.

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