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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Payment to Vender A (i...
Small and medium business | Business Central, N...
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Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

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Posted on by Atahualpa 109

Hello Friends.

I would be very grateful for help on the following matter:

Is there an easy and straightforward way to pay one vendor on behalf of another vendor? Our non-profit has 1099 employees that we treat as vendors. However, there are certain payments that we make on their behalf such as insurance and retirement. Is there a straightforward way to do the following:

Payment to Vendor A (Blue Cross) on behalf of Vendor B (1099 employee) such that the Blue Cross payment is recorded as a 1099 expense paid to Vendor B

Thanks in advance for any help you can give me!

cordially,

Wes Baker

  • Suggested answer
    Dallefeld Profile Picture
    Dallefeld 175 User Group Leader on at
    RE: Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

    And FYI, IRS might consider what you are doing as your vendors are really employees. I had a client that did things similar to you and the IRS fined them, made them pay social security and medicare taxes for several years back.....The client then increased the payments to the vendors to include insurance and retirement though it was not specified as such and the vendors were required to get their own insurance and retirement.

    Just wanted you to know.

  • Suggested answer
    Atahualpa Profile Picture
    Atahualpa 109 on at
    RE: Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

    Thank you!

  • Suggested answer
    Vaishnavi J Profile Picture
    Vaishnavi J 3,060 on at
    RE: Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

    Hi,

    There is no way to separate the bill to and pay to be record differently if used General Journal.

    So the best way is to create a purchase invoice with

    Bill to No= Vendor A

    Pay to Vendor= Vendor  B

    During the payment process(Create payment) the payment will be made to Vendor B

    If my answer was helpful to you, please verify it so that other users know it worked. Thank you very much

  • Atahualpa Profile Picture
    Atahualpa 109 on at
    RE: Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

    Thank you! This sounds very helpful. Is there a way to do this from the Recurring General Journal without first creating the separate purchase invoice?

  • Suggested answer
    Vaishnavi J Profile Picture
    Vaishnavi J 3,060 on at
    RE: Payment to Vender A (insurance) on behalf of Vendor B (1099 Employee)

    Hi,

    When you are creating a purchase invoice there is section Pay to vendor if your buy from vendor and pay to vendor is different then payment will be done against that vendor which is mentioned in pay to vendor field.

    If my answer was helpful to you, please verify it so that other users know it worked. Thank you very much

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