Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

Create a journal entry to correct 1099 reports

This article guides you on how to use general journal entries to correct 1099 reports. Determined by your needs, you can either create a journal entry without affecting your financial reports or you can record one that will impact your financial reports.

Detailed instructions

Record Year-to-Date amounts for Form 1099 without affecting financial reports

If you start using QuickBooks Desktop mid-year, you can use these steps to reflect Year-to-Date (YTD) vendor expenses and make your 1099s accurate at year end. By creating an offsetting general journal entry, you can track 1099 expenses without affecting balances and financial reports.
 

To do this:

  1. From the QuickBooks Company menu, click Make General Journal Entries.
  2. In the Make General Journal Entries window,
    1. On the first line, select your 1099 expense account and enter the amount under Credit column. This amount can be the expense for a single or all 1099 vendors.
    2. Do NOT enter a vendor name on this line.
    3. (Optional) Type a memo.
    4. On the next line, select the same 1099 expense account you used in Step a.
    5. Enter the amount paid for the 1099 vendor under the Debit column. This line should have the 1099 vendor name
    6. Repeat steps d and e for each vendor paid during the year.
  3. Make sure the journal entry is balanced. Click Save & Close.

Note: When you print your 1099/1096 forms or run the 1099 Summary/Detail reports the amounts will be reflected.

 

Create a journal entry that will contribute to a 1099 Vendor Report and impact financial reports

A 1099 Vendor Report shows the transactions that will contribute to the amounts on a 1099 for your vendor. Usually, these transactions are simply checks or bills. However, you may need to use a journal entry to make an adjustment that will affect the 1099 amounts and impact your financial reports. 

The 1099 Vendor Report will include any line that includes BOTH an account mapped to a box on the 1099 AND a Vendor who is marked as a 1099 Vendor.

Note: If an Accounts Payable account is used on the Journal Entry, you will also need to apply it to a bill or payment. (Unpaid bills or unapplied payments don't contribute to a 1099.)

To do this:

  1. From the QuickBooks Company menu, click Make General Journal Entries.
  2. In the Make General Journal Entries window,
    1. On the first line, select an account (usually a cash account) and enter the amount under the Credit column. Do NOT add a vendor name on this line.
    2. (Optional) Type a memo.
    3. On the next line, select a 1099 account (expense) and enter the amount under Debit column. This line should have the 1099 vendor name
  3. Click Save & Close.
KB ID# HOW12898
12/8/2016 12:03:09 PM
QYPPRDQBKSWS05 9138 Pro 2017 ed7c92