I pay commissions to multiple vendors at one time through one bank transaction and have found that it is easier to key the vendors through a journal entry than to create an expense for each. However, after doing this for the first time I have noticed that the expense is not showing up in the vendor details. These payments have to be tracked for 1099 purposes. Will this method not work?
The journal entry won't work with vendor payments tracked for 1099, @tchappell. I'll explain the details about this and provide additional information to help you record them correctly in QuickBooks Online.
Since Journal Entries are not expense transactions, this will not show and be reported on the vendors' list and in the 1099 tax forms. The transactions you can only see on each vendor's profile are transactions you've created for them, like bills, checks, expenses, and purchase orders.
With that said, the best option you can do is to delete this entry. I also recommend consulting with your accountant. Deleting it can make your account unbalanced. I'll lay down the steps to remove them permanently:
I'll leave this article for more information about reversing or deleting a journal entry in QuickBooks Online.
Then, recreate the commission payments as checks, expenses, or bill/bill payments. By this, they will show on the list and be easier for you when preparing the 1099 forms.
Furthermore, filing your 1099s through QuickBooks will be beneficial so you don't have to file them yourself and stay compliant with the IRS.
Additionally, there are vendor reports available in the program that display vendor-related transactions with totals.
I'd be glad to hear how this goes on your end. If you need further assistance managing your vendor payments tracked for 1099, you're always welcome to add a comment below. I'll be here to assist you. Have a nice day!
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