Making Corrections or Deductions to Vendor Payments

May 15, 2018

ahambach

When you are paying your vendors, you can enter a negative payment amount.  You would do this for two reasons: 1) Correcting a previous vendor payment, or 2) Deducting from the vendor for a purchase they made from you.

Correcting a vendor payment

If you need to make a correction to a vendor payment, you can enter a negative payment amount to reduce the payment.  This correction would need to update the year-to-date payment information that will print on their 1099.   Note that a correction can only be included with another positive payment, so the total check is positive.  If you need to void an entire vendor payment, see Voiding a Vendor Payment.

Accounting > Vendor Tasks > Quick Pay

  • Select a vendor to pay.
  • Enter the amount of the correction as a negative number.
  • Select the same 1099 Type as the incorrect payment.  This will correct the year-to-date payment total on the 1099 at the end of the year.
  • Enter another positive amount to pay by clicking “Add Line Item.”  The total amount of the check must be a positive number.
  • Continue through the normal steps of paying your vendor.

Deducting an amount from a vendor payment

You can deduct an amount from a vendor check without affecting the year-end 1099.  For example, if your contractor purchases a product or service from you, you can deduct the purchase without affecting their year-to-date payment information.

Accounting > Vendor Tasks > Quick Pay

  • Select a vendor to pay.
  • Enter the deduction amount as a negative number.
  • For the 1099 Type, be sure to select “Non-1099 Payment.”  This deduction will not affect the year-to-date payment total on the 1099 at the end of the year.
  • Enter another positive amount to pay by clicking “Add Line Item.”.  The total amount of the check must be a positive number.
  • Continue through the normal steps of paying your vendor.

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