Solved

Bill payment and 1099s

Forum|Forum|5 months ago
January 12, 2026
1 reply
15 views

Here is the scenario:

Company A received a bill for some work for $100. Company B paid for to bill. I need to have the bill show up in Company A as an expense.

What I have tried to do:

Created a bill in Company A.

Made a Journal Entry with "AP" being debited $1000 and the vendor tied to that. Then "Loan from Company B" being credited $1000.

Paid bill by using the credit of $1000. This creates a $0 balance.

Write check to Company B for $1000, posting to Loan from Company B.

This seems to do what I need in terms of accounting.

Then when I go to run 1099s, it will not show up as a payment to the vendor. I am assuming because of the $0 balance. I have checked all the mapping is correct. When I have done a dummy entry just straight bill and bill payment, it does show up on the 1099.

What is the correct way to do this? QuickBooks Desktop 2021, if that matters.

Thank you for any help.

QuickBooks Desktop

Best answer by TrixieD

Hello there, cadworksjs.

Thank you for providing detailed information. You’re actually on the right track in handling the bill and payment paid by Company B.

The reason why the payment is not reported is that the “Loan from Company B” is canceling out or offsetting the original expense, resulting in a zero-dollar payment for 1099 purposes. When mapping your 1099 expenses, let’s only map the original expense category tied to the vendor and omit the “Loan from Company B” account from the journal entry.

The payment made by another company is indirect, so QuickBooks Desktop won't recognize it. The process above will ensure the expense appears correctly in the 1099 report.

If you have additional concerns, notify us. We’re here to help.

T

TrixieD

Answer

QuickBooks Team

Hello there, cadworksjs.

Thank you for providing detailed information. You’re actually on the right track in handling the bill and payment paid by Company B.

The reason why the payment is not reported is that the “Loan from Company B” is canceling out or offsetting the original expense, resulting in a zero-dollar payment for 1099 purposes. When mapping your 1099 expenses, let’s only map the original expense category tied to the vendor and omit the “Loan from Company B” account from the journal entry.

The payment made by another company is indirect, so QuickBooks Desktop won't recognize it. The process above will ensure the expense appears correctly in the 1099 report.

If you have additional concerns, notify us. We’re here to help.

C

cadworksjsAuthor

That worked! Thank you so much.

D

Dandie_A

QuickBooks Team

Thank you for getting back to us, cadworksjs.

I'm glad to hear that my colleague's response helped resolve the concern with correctly handling the bill payment and ensuring it appears in the 1099 report.

If you have any further questions or concerns, please don’t hesitate to post in this forum. We’re always here to help.

Sign up

Login with SSO

Let's get you signed in

Login with SSO