Making Corrections or Deductions to Vendor Payments
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 or delete an entire vendor payment, see Voiding a Vendor Payment.
Before you change any amount to a vendor who has been paid by credit card, please read, “Recording a vendor payment by credit card.”
Accounting > Payables > Enter & Pay Bills
- 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 >Payables > Enter & Pay Bills
- 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.
To add vendor payments made to you before using Patriot Software, see: Updating Vendor Payment History
Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.
