QB Issue Resolution:

Accounting wise, your two entries are accurate. You may need one final entry to clear those entries in QuickBooks.

First entry, it creates accounts payable under that vendor.

Second entry, Journal entry creates credit against that vendor. It is not applied payment against that Vendor Bill. You may see, “Make Payment” under “Action” column under Vendor transactions center. See attached screenshot for reference. If that’s the case, you need to make third entry.

Third entry will clear two above entries and clear the payment from that account. Just click ” Make Payment” link and select “Outstanding” and “Credits” with zero amount to clear the account. See attached screenshots for reference.

Resolution for Issue 'How best do I enter payments to 1099 contractors made via Payroll provider?' available: Yes (Solved).
Source: Intuit Community forum.

How best do I enter payments to 1099 contractors made via Payroll provider?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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