How to Designate a Vendor as a 1099 Vendor in QuickBooks
Ask the Accountant…
Question: When I try to designate a vendor as a 1099 vendor, it is greyed out. How do I change that?
Answer: There has been a recent change to Preferences in QB Premier regarding 1099 status of vendors. Now, you must turn on the 1099 option in "Preferences" > "Tax: 1099" (toward bottom of list) > "Company Preferences" > "Do you file 1099 forms?" > "Yes."
I think it’s simpler just to turn on this option even if you don’t currently have any 1099 vendors.
Now, go to "Vendor" > "Vendor Center" > Double click on the vendor who is eligible for a 1099 > "Tax Settings" > Click “Vendor Eligible for 1099."
Harriet Gatter is a QuickBooks ProAdvisor, a former accounting professor and a former ad specialty distributor of 23 years. She advises ad specialty distributors about using QuickBooks Premier & Enterprise, and SAGE Online to save time, eliminate errors, and correctly account for your business. Her specialty is converting distributors from ProfitMaker, SmartBooks, OrderMaster, AIA, Proforma, and other accounting systems.
Please email accounting questions you would like considered for the column to HGatter@AccountingSupportLLC.com with the subject line of "Ask the Accountant".