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Chapter 3.5

Vendors and 1099 Details

How to add the businesses and people you buy from, record the tax details needed for 1099s, and see at a glance what you owe each one.

Level Beginner Time about 10 minutes to read, 2 minutes per vendor You need the vendor's details, and their W-9 if they will receive a 1099 Edition November 2026 (revised 5 November 2026)
Learning objectives

When you finish this chapter you will be able to:

  1. Find any vendor and see what you owe them.
  2. Add a vendor with terms and remit-to address.
  3. Mark a vendor for a 1099 and record their tax ID safely.
  4. Reach a vendor's bills, checks, expenses and credits from their page.

Contents

  1. 1The Vendors page
  2. AProcedure A: add a vendor
  3. 2The 1099 section, explained
  4. 3A vendor's page
  5. 4Check your understanding
  6. §Notes
SECTION 1

The Vendors page

Expenses → Vendors lists everyone you buy from, with the open bills, the overdue amount and what you owe each. It works like the Customers page (Chapter 2.6).

Vendors page: you owe vendors 315,407.09, overdue 301,172.51, 38 vendors; tabs All vendors, You owe, Overdue, Nothing open; list with open bills, overdue, you owe, latest bill, and Enter a bill or Pay bills
Figure 1. The Vendors page. A + Vendor, which leads to the Contacts page, where + Contact adds one. B pay bills (Chapter 3.3). 1 the You owe and Overdue tabs. 2 the next step for each vendor: Enter a bill, or Pay bills if you owe them.
PROCEDURE A

Add a vendor

Click + Vendor. BizBooks360 opens the Contacts page on its Vendors tab; there, click + Contact. The New vendor form opens with Vendor ticked. The name, contact and address parts are the same as for a customer (Chapter 2.6, Procedure A); this chapter covers what is different.

Vendor part of the contact form: terms Net 15; As a vendor and their 1099: Receives a 1099 ticked, tax ID is an EIN, tax ID masked with a Show button, their account number SUMMIT-0042, business ID, billing rate 55.00, W-9 exemptions, FATCA, employee or vendor number, and a note
Figure 2. The vendor part of the form. Numbers match the steps.
  1. 1

    Fill in the name, contact and address

    For a vendor, the address is also where payments go and where their 1099 is mailed, so use the address on their W-9.

  2. 2

    Set their terms 1

    New bills from this vendor start with these terms, so due dates are right without thinking.

  3. 3

    For a contractor, tick Receives a 1099 2

    "Payments to them are reported to the IRS." Section 2 explains who needs it.

  4. 4

    Choose EIN or SSN 3 and type the tax ID 4

    Copy it from their W-9. It is hidden as you type; Show 5 reveals it for a moment to check it.

  5. 5

    Optionally, their account number for you 6 and a billing rate 7

    The account number is what they call you; it belongs on every check memo so they can find your payment.

  6. 6

    Note where the W-9 is 8, attach it, and save

    Drop the W-9 PDF on Files. Then Save the contact.

Saved vendor Riverbend Paddle Instruction LLC tagged Vendor and 1099 with the tax ID shown only as its last four digits, an As a vendor panel with you owe 0.00, and Enter a bill, Write a check, More
Figure 3. Saved. 1 the 1099 tag shows only the last four digits of the tax ID. 2 start a bill straight away.
SECTION 2

The 1099 section, explained

FieldWhat it is for
Receives a 1099Puts the vendor on the 1099 report (Chapter 6.9). In general, US businesses must issue a 1099-NEC to unincorporated contractors they pay for services: $2,000 or more in a year for payments made after December 31, 2025 (it was $600 or more through 2025). BizBooks360 applies the $2,000 test from the 2026 tax year.2
EIN or SSN, Tax IDPrinted on the 1099. Kept hidden on screen and shown only as the last four digits elsewhere.
W-9 exemptionsThe exemption codes from line 4 of their W-9, if any.
FATCA filing requiredTick only if the W-9 says so (rare: foreign accounts).
Employee / vendor numberYour own reference for them, if you use one.
Pro tip: no W-9, no first payment

Ask for the W-9 before you pay a new contractor anything. In January, chasing W-9s from people you paid months ago is the most painful part of 1099 season.

SECTION 3

A vendor's page

Click a vendor's name. The As a vendor panel shows what you owe, how much is overdue, any unused credit and the last bill. The buttons start a payment or a bill, and More holds the rest.

Alpine Sports Wholesale's contact page: as a vendor you owe 92,858.00 on 5 open bills, overdue 82,626.00, last bill 11/05/2026; the More menu with Write a check, Record an expense, Vendor credit, Merge with another contact, Make inactive, Delete the contact
Figure 4. Alpine Sports Wholesale, with the More menu 1: Write a check, Record an expense, Vendor credit, Merge with another contact, Make inactive and Delete the contact.

The Latest documents panel lists their recent bills and credits. When you stop using a vendor that has history, make it inactive rather than deleting it: it leaves the lists but keeps its records. The Named by panel on the contact page says whether anything still refers to it.

Caution: changes that wait for a second person

If the owner has put vendor changes under approval, a change to a vendor's remit-to address, tax ID, name on checks, payment method or 1099 tick is saved at once but reviewed by a second person. The vendor's page then says, for example, "Changed Nov 5 by A. Morgan: waiting for review." When payments are held, it adds "Checks and bill payments to this vendor wait until a second person reviews the change of its remit-to address or tax ID under Accounts > Approvals." This guards against the classic fraud of a fake e-mail asking you to send payments to a new bank address.

SECTION 4

Check your understanding

1. A one-person kayak instructor will be paid about $3,500 in 2026. What do you tick and collect?

Answer

Tick Receives a 1099, and collect their W-9 for the tax ID and address. $3,500 is above the $2,000 line that applies to payments made in 2026.

2. Where does the vendor's own account number for you belong?

Answer

In Their account number for you, and on the memo of every check you send them.

3. You stop using a supplier who has two years of bills. Delete or make inactive?

Answer

Make inactive. The history stays.

Notes

  1. Notes give background, exceptions and the reasons behind a rule. ↑
  2. The $2,000 figure is IRC section 6041(a) as amended by P.L. 119-21, for payments made after December 31, 2025; it is indexed for inflation after 2026. The 1099 report in BizBooks360 states the same rule, and the setup checklist says "Payments of $2,000 or more in a year need a 1099 (from 2026)." This is a summary, not tax advice. The threshold, the kinds of payment and who is exempt (most corporations, for example) are set by the IRS; ask your tax preparer. ↑

Volume 3: Expenses

  1. 3.1Recording an expense and writing a check
  2. 3.2Entering a bill
  3. 3.3Paying bills
  4. 3.4Vendor credits
  5. 3.5Vendors

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