Form 1099 Coding Issues - Accounting Software Secrets
book-template-default,single,single-book,postid-17454,bridge-core-2.6.3,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode-theme-ver-24.8,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.5.0,vc_responsive

Form 1099 Coding Issues

Form 1099 Coding Issues

Ask the Expert – Form 1099 Account Coding Issue

Q – I am working on preparing the 1099″s for a client and they have created a problem for me. It is a professional service firm and the pass through expenditures have been coded to an income account. What do I do?

A – As you have obviously already discovered, QuickBooks does not recognize income accounts on the list of choices for creating 1099s, just like the names must be on the vendor list. The quickest solution (assuming that the accounting theory behind the expenditures being coded to an income account is correct) would be to correct the issue with a two checks. To calculate the total amount paid to the vendor, create a transaction detail report filtered for only the appropriate account. Confirm that the report is cash basis and then total by vendor. This will provide the total amount paid to the vendor. At this point, do a check with the vendor name as the payee, the appropriate 1099-able expense account amount, and a negative amount for the income account. Then enter a second check with the payee name blank and the coding reversed (i.e. the expense account is negative and the income account is positive). This process will have the correct amount assigned to the vendor for the 1099 but the net effect on the general ledger will be zero.


More information on this topic

Questions and Answers

Form 1099