QuickBooks 2012 1099 Wizard Bug (and workaround)

| January 10, 2012 | 7 Comments

It’s that time of year – time to file your 1099 MISC forms, and this year is crazier than most. There is a bug in the QuickBooks 1099 Wizard that affects SOME people, and I have a workaround for it. This is only an issue if you are trying to map out an Other Current Asset account.

If you have QuickBooks 2009 through 2012 and are processing 1099’s you want to read this QuickBooks and Beyond article about Processing your 2011 1099 Misc forms.

Now, let’s get into the details of a bug that is in that Wizard.

Here’s a portion of my sample Chart of Accounts. Note that I have several Other Current Asset accounts, and that Prepaid Expense is the first of that type.

QuickBooks Chart of Accounts

I have a bill that used that account, in this case for $120.00 to “Sanwon Industries”.

I’m not an accountant, and I wasn’t sure why you would want to use an Other Current Asset for this situation. Doug Sleeter provided me with this explanation:

Sometimes costs for projects are accumulated on the balance sheet as “assets” until the project (or job) is completed. It’s relevant when the client recognizes revenues using either the “completed contract” or “percentage of completion” method. So when paying for those costs, we often recommend people create QB items that point to “other current assets.” Then at the end of the project, they “close out the jobs” using either journal entries or zero-dollar checks to pull the costs out of the assets and into the expense accounts. Therefore, the 1099 issue could bite people if they don’t map those asset accounts to the correct boxes on the 1099.

Using the QuickBooks 1099 Wizard in QuickBooks 2012 R5 (the current release at the time I’m writing this) I have mapped the Prepaid Expense account.

Mapping Prepaid Expenses

However, in the confirm entries step, you’ll note that there is an unmapped payment for this amount showing. This is that payment that was mapped to the Prepaid Expense account.This is a problem.

Unmapped Payment for Other Current Asset

Fortunately, there is a workaround. This issue only occurs if the Other Asset Account is the first in the list. The simple solution is to add another Other Asset Account in the Chart of Accounts that shows before the one that you have used.

Dummy Other Asset Account added

If you do this, and you go back to the QuickBooks 1099 Wizard, you’ll see that the problem has been resolved.

Problem Resolved

After you print your 1099’s I don’t see any reason why you can’t go back and delete the account – but again, there is no guarantee that Intuit will fix this bug for next year…

Thanks to Sam Wilkerson of Intuit for pointing this out to me, Ruth Perryman for answering my dumb question, and Doug Sleeter for his detailed and comprehensive example.

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Category: General Tips

About the Author (Author Profile)

Charlie Russell is the founder of CCRSoftware. He’s been involved with the small business software industry since the mid 70’s, focusing on inventory and accounting software for small businesses. Charlie is a Certified Advanced QuickBooks ProAdvisor. Look for Charlie’s articles in the Accountex Report blog, as well as his California Wildflower Hikes blog.

Comments (7)

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  1. Penny Lane says:

    Excellent! A rare occurrence, but so glad to know a quick answer when someone has already figured it out. Thank you!

  2. Jenny Furst says:

    Thank you thank you! Was starting to pull my hair out over this issue.

  3. Michael says:

    Great tip, saved me $35, can’t believe Quickbooks would charge me to give me a workaround for a bug.

  4. I was wondering if anyone has a work around for my problem. I have total checks written in 2013 for a vendor totaling $2,700 however the 1099 wizard is only pulling in $2,550. It is $150 short. When I go to look back at the cleared check transaction the check was written for $900 but only $750 of it was linked to pay off three bill payments. These bill payments seem to be mapped correctly, but not sure why it is not picking up the total $900 check. Any insights how to fix this so I can e-file the 1099s by March 31, 2014.

    Thanks,
    Jen

    • Charlie says:

      It’s the bill that keys the 1099, not the check. What did that other $150 go towards?

      • Charlie –

        That is what I am trying to verify. I did not work for this client until March 2014 so I am trying to research it. We overpaid the vendor so I assume it showed as an over payment on the account. If I can find the bill the $150 was applied to, I am not sure if I can correct it since the check has already cleared. Do you know if there is a manual adjusting entry I can create for now so that the $150 pulls into the 1099 wizard? Could I debit an account and put the vendor in the name field and then credit the same account without the vendor in the name filed? Let me know what you think. Thanks.

        • Charlie says:

          I would have to know what happened with that $150. As a quick fix you could probably enter a bill and pay it for $150, dated last year, to put it in the 1099. My apologies, I actually don’t work with 1099’s in QB that often.

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