QB Issue Resolution:

I’d like to clarify this for you.

You can create an expense based on the invoice sent by your contractor so you can generate 1099. This helps you track the payments of your contractor.

Here are the steps you need to do in QuickBooks Online:

  1. Go to the PlusĀ (+) icon at the top.
  2. Select Expense Under Vendors.
  3. On the Payee field, enter the name of the contractor.
  4. Select the Bank/Credit account to which to credit this expense.
  5. Enter the date of purchase in the Expense/Payment date field and specify the Payment method for the expense.
  6. Specify the Accounts to use for the transaction, and optionally enter a description of the expense.
  7. Enter the Amount of the purchase.
  8. Click Save and close.

Please see the attached screenshots for your guidance.
You can read through these articles for additional information and learn more about setting up 1099:

This answers your concern for today.

Resolution for Issue 'Where do I have to report reimbursements to contractors in the 1099 form?' available: Yes (Solved).
Source: Intuit Community forum.

Where do I have to report reimbursements to contractors in the 1099 form?: 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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