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.
Record Year-to-Date amounts for Form 1099 without affecting financial reports
To do this:
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.)