Set up vendors or customers
You should have a payee on your QuickBooks Transactions for several reasons:
- Understanding what vendors are being used across the organization
- Compliance with local and federal tax agencies
- 1099 reporting
- Visibility and Transparency
- Accurate Bookeeping
Anytime you enter a payee, you will have the option to create a Customer or Vendor.
What is the difference between a Customer and a Vendor in QBO?
A Customer:
- Someone you typically receive money from
- This might be an organization that regularly donates to AYSO or Blue Sombrero
- Typically you won't create a new Customer often as these should be created only when you receive multiple payments from a group or individual
- Customer field on payments received are not required
- If you need to refund money paid to you, you are refunding to a Customer
A Vendor:
- This is someone you are paying for a product or service
- This might include purchases of Equipment or payments to someone to take care of your fields.
- All Paid Service Providers - Contractors, Field Services, etc.- affiliated with AYSO need to comply with the Paid Services and 1099 Requirements as outlined in the AYSO Reference Book.
Download 1099 QuickBooks Training
Download the Training Guide for more information about setting up vendors properly for 1099 compliance.
How to Create a New Vendor or Customer
When entering in a payee, you will have the option to add a new vendor or customer if they do not already exist
When you click on the "+ Add New (Vendor Name) a new section will pop out on the right side of your screen
Here you will want to enter in the details that are applicable to this vendor including:
- Company Name
- Contact person
- Contact Details (Email and phone if applicable)
- Attachments
- Notes about the vendor
Scroll down in this form and you will see the "Additional Information" section required for all Paid Service Providers
While not all fields are applicable for all vendors, anyone providing a service to the S/A/R should have the "Track payments for 1099" box checked and should be listed as a payee for all payments.
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