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Vendor payment allocated to customer invoice

LaDonnaLaDonna Member Posts: 1

Help! I've searched everywhere and tried numerous things, to no avail. Hoping there is a simple solution.
I have real estate agents who are both customers (they receive a monthly bill) and vendors (we pay commissions). Sometimes I need to retain part of their commission to pay their outstanding invoices. However, on their 1099 I need the number to reflect the total commissions paid - not the net amount. Is there an easy way to solve both issues? TIA.

edited February 22, 2021 in Accounting Technical Support

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @LaDonna ! With how 1099-MISC forms work in Wave, I'm afraid that there is no workaround available to record a bill deduction (the retained amount) to pay an outstanding invoice without affecting the contractors 1099. The bill(s) and invoice(s) will need to be recorded in full without any deductions applied to reflect the total commissions paid on the 1099-MISC form. The reason being is because the exact movement of funds in your account needs to be recorded even if the funds ultimately land back in the same account. If a deduction is added to the bill, it will result in a net amount on the 1099. With that being said, I would highly recommend reaching out to a registered CPA for more insight into your bookkeeping method.

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