II Vendors & Payables

In Session II we cover the all-important objective of keeping your business running by keeping your Vendors paid on-time. Performance goals of this session include:

• making payments
• memorized payments
• entering & paying bills
• receiving items and matching bills to them
• creating purchase orders and matching items and bills to open orders
• reviewing & issuing 1099s to eligible vendors

Start by restoring the Concocted Construction backup file on your desktop to the Company Files directory:  Desktop\Compay Files\

• REVIEW Account Reconciliation:  
• Banking > Reconcile > select account, enter ending date & amount interest & fees, click continue. 
• Check items in the window corresponding to items in your statement. If the difference isn't zero, try to find missing/incorrect transactions BEFORE clicking  Reconcile to avoid a reconciliation adjustment, otherwise you'll have to go back at some later point when your memory isn't as fresh to adjust the adjustment
• Print/Save as PDF the Reconciliation Detail and review for outstanding transactions -- anything over a month old should be followed up on.
• Credit Card reconciliations have the additional step of entering a bill or check for payment

Credit card reconciliation with option to pay or enter bill

• Payment Methods
• Cutting a check (ctrl-w or Banking > write checks)
• mandatory fill-ins:  date; amount; payee; account/item
• optional fill-ins:  memo; customer/job; billable checkbox; class
• don't forget the check number:  enter check # or select the "to print" option
• Credit card payments
• Menu:  Banking > Enter Credit Card Charges
• same fill-ins as checks
• Memorized Payments
• Viewing:  ctrl-t or Lists > Memorized Transactions
• Memorizing recurring transactions:  ctrl-m or Edit > Memorize 
• Enter a memorized transaction:  highlight and Enter Transaction 

Vendor Center

Getting to the Vendor Center via Menus or Vendor button

Vendor Center & its options

• Bills / aka Accounts Payable
• Entering bills
• Vendors > Enter Bills
• Paying BillsVendors (or Vendor Center > New Transaction) > Enter Bills

Items for things to be invoiced directly to clients.
Expense for other things.

• Receive Items and Enter Bills
• Vendors (or Vendor Center > New Transaction) > Receive Items & Enter Bills
• Enter Credits
• Vendors (Vendor Center New Transaction) > Enter Bills
• Click the Credit radio button
• Apply credits when you pay bills
• Receiving Items
• Vendors (New Transaction in Vendor Center) > Receive Items
• When bill is received for the item, Vendors > Enter Bill for Received Items

Item Receipt

• Purchase Orders
• Vendors > Create Purchase Orders
• Use for: tracking purchases from concept to payment
• Caveat: generally considered a contractual agreement, so be careful in their use
• Vendors:  1099 or not? Generally, provide 1099s for amounts you paid individuals for work performed (aka: non-employee compensation). In most cases, you don't need to provide 1099s to corporations, but the rules can be hazy for things like partnerships and LLCs. As a general rule of thumb, it's better to 1099 someone you didn't need to 1099 than it is to leave someone out, so when in doubt, send it!
• First and Foremost:  have all your vendors fill in and submit a form W-9 to you -- it's best to do this when you first establish a relationship with them so you aren't scrambling for their tax information in January. The IRS's current W-9 is at https://www.irs.gov/pub/irs-pdf/fw9.pdf
• QuickBooks should print on the 1099 forms you can obtain for free from the IRS -- many libraries and post offices also stock them in January -- the caveat being that since the forms come in triplicate, you'll have to separate them, and may also need to futz with print settings, before printing. And, of course, Intuit also sells compatible forms, which you don't have to separate before printing.
• List your vendors and payments:  Vendors > Print/Efile 1099s > 1099 Detail Report (or Summary Report)
• Enter the year and select All Vendors and All Accounts to make sure you haven't missed a vendor or payment account
• Edit vendors and/or accounts as necessary
• Vendors > Print/Efile 1099s > 1099 Wizard > click Get Started
• Select vendors who will receive 1099s and Continue
• Review Tax ID and Address, edit as needed, and Continue
• Review 1099 classifications to your accounts (usually Box 7, but rents paid are in Box 1) and Continue
• View included and excluded payments to make sure and Continue
• Confirm recipients and amounts and Continue
• Click Print 1099s 
• Select 1099s to print and click Print 1099 -- don't forget to print copies for the IRS and you
• Click Print 1096 -- print copies for you and the IRS