Vendors
Any XE "vendors" outside entities to whom you pay money are set up in QuickBooks as
vendors. Suppliers come first to
mind, but QuickBooks extends the term to
include any external entity, that gets your
money, including tax collectors. Accounts Payable will accept only vendor names.
Individuals who
are validly independent contractors are
included. Be aware that some businesses
try to avoid taxes by classifying employees
as independent contractors XE
"contractors:independant" XE
"independent contractors" .
The IRS is looking, and is armed with
penalties. The rules and examples
occupy several pages in IRS Publication 937,
Employment Taxes.
New Vendors
are added, from the List of Vendors, by clicking
Vendor then New.
Data entry is essentially the same as in the
New Customer window.
Online banking requires complete address, telephone number and account number. 1099-MISC reports are
available for vendors, but require inclusion of a zip code in the address, as well as
Tax id (EIN or SSN.)
Type
is an additional label on the vendor, similar to
Customer Types.
Terms
will be payment terms XE "terms" agreed between you and the vendor, and may be selected from the
list of terms, where the visible text is cosmetic. The numbers behind the text control what happens. The list of
terms may be edited under
Lists|Other Lists|Terms.
Credit Limit
allows QuickBooks to remind you if a bill or purchase order would exceed your limit with this
vendor.
For no credit limit, leave this field blank.
To indicate no credit permitted, enter zero.
Tax ID
XE "tax id" takes the vendor’s employer identification number (EIN) or social security number (SSN.
)
Opening balance
is better left unused. QuickBooks does double-entry accounting, so any entry here results
in an opposing entry, to undocumented expenses. The more controlled way to enter the opening balance is
with a vendor bill for the purpose, described in the Chapter 9.
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