Vendor Management
Guide 16: Vendor Management
Track vendors and 1099 contractor payments
Overview
The Vendors feature helps you track everyone you pay, especially contractors and service providers who need 1099 forms at year-end. Organize vendor information and generate 1099 summary reports easily.
What you'll learn:
- Adding and managing vendors
- 1099 tracking
- Vendor payment history
- Year-end 1099 reporting
Time required: 5 minutes per vendor
Adding a Vendor
Step 1: Open Vendors
- Go to Vendors in the sidebar
- Click Add Vendor
Step 2: Enter Details
Basic Information:
| Field | Description |
|---|---|
| Name | Vendor/company name |
| Contact email | |
| Phone | Contact phone |
| Contact | Contact person |
Address:
| Field | Description |
|---|---|
| Address | Street address |
| City, State, Zip | Location |
[Screenshot: Add Vendor form]
Step 3: 1099 Information
For contractors who need 1099:
| Field | Description |
|---|---|
| 1099 Vendor | Check if this vendor needs 1099 |
| Tax ID (EIN/SSN) | Vendor's tax ID number |
| Default Category | Category for payments to this vendor |
Important: Collect W-9 forms from contractors to get Tax ID numbers.
Step 4: Save
Click Save Vendor
1099 Tracking
What is a 1099?
Form 1099-NEC reports payments to non-employees (contractors). You must issue 1099s to:
- Unincorporated businesses
- Contractors paid $600+ during the year
- Attorneys (any amount)
Setting Up 1099 Vendors
When adding a vendor:
- Check 1099 Vendor
- Enter Tax ID (from W-9)
- Set Default Category to appropriate business expense
Linking Transactions
When you pay a 1099 vendor:
- Create expense transaction
- Select the vendor as payee
- OtterLedger tracks the amount toward 1099
Or set up payee matching:
- Go to Payees
- Link payee name to vendor
- Future transactions auto-link
Vendor List
View all vendors at Vendors:
| Column | Shows |
|---|---|
| Name | Vendor name |
| 1099 | Yes/No indicator |
| YTD Payments | Total paid this year |
| Balance | Outstanding bills |
[Screenshot: Vendor list with 1099 indicators]
Filtering Vendors
- 1099 Vendors - Only vendors needing 1099
- Active/Inactive - Current or past vendors
- Search - By name, email, or tax ID
Vendor Details
Click a vendor to see:
Summary
- Contact information
- 1099 status and Tax ID
- YTD payment summary
Payments
- All payments to this vendor
- By date, amount, category
- Running total for 1099
Bills (if tracking)
- Outstanding bills
- Payment status
1099 Summary Report
At year-end, generate 1099 summary:
Run the Report
- Go to Reports → 1099 Summary
- Select tax year
- View all 1099 vendors and payment totals
[Screenshot: 1099 Summary report]
Report Shows
| Vendor | Tax ID | Total Payments |
|---|---|---|
| John Smith Consulting | XXX-XX-1234 | $15,500.00 |
| ABC Services LLC | XX-XXXXXXX | $8,200.00 |
| Total | $23,700.00 |
Export for Filing
- Click Export
- Choose format for your 1099 filing service
- Upload to IRS filing system
Editing Vendors
- Click vendor name
- Click Edit
- Update information
- Save
Make Inactive
For vendors you no longer use:
- Edit vendor
- Check Inactive
- Save
Delete Vendor
Only if no payments recorded:
- Select vendor
- Click Delete
- Confirm
Tips & Best Practices
Collect W-9s early - Get tax info before first payment
Mark 1099 immediately - Set up correctly from the start
Verify amounts - Check YTD totals match your records
Include all payments - Reimbursements count toward 1099
File on time - 1099s due to recipients by Jan 31
Troubleshooting
Q: Payments not showing for vendor
A: Check that transactions use matching payee name. Link payee to vendor if different.
Q: Missing Tax ID
A: Request W-9 form from vendor. Required for 1099 filing.
Q: Should I include reimbursements?
A: Yes, gross payments count. Don't net out expenses.
What's Next?
- Guide 18: Schedule C Report - Tax reporting
- Guide 34: 1099 Summary Report - Detailed 1099 report
Need help? Visit the OtterLedger community at github.com/openledger or check the FAQ.