This lesson reviews the best practices for creating author records in QuickBooks.
In QuickBooks authors are entered as vendors. Royalty advances and royalty statements are entered as vendor bills.
The vendor record stores the contact information for the author. The vendor information screen below shows the author’s name, address, phone number, and email address. You can edit this information by clicking the edit icon; the pencil, at the top of the vendor record.
Below the vendor information are tabs for transactions, contacts, to do’s, notes and sent email.
In the Transactions tab for a vendor you can view the author’s royalty statements, royalty advances and payment transactions.
Tip: Use the Notes tab to show the titles for this author.
After clicking the vendor’s edit button, the Edit Vendor window appears with the Address Info tab selected.
The Address Info tab is where author’s contact information is entered.
The Payment Settings tab’s ACCOUNT NO. field is where you record your royalty system’s author id if your business process uses this field to match the royalty software’s payment file to the QuickBooks vendor record.
The alternative is to use the QuickBooks VENDOR NAME as the accounting system ID in your royalty software’s author record.
In the United States, publishers must report royalties earnings of $10 or more to the Internal Revenue Service on IRS Form 1099-MISC.
In the Tax Settings tab, for non-corporate royalty recipients, enter the VENDOR TAX ID and select the vendor eligible for 1099 check box.
Note: 1099 reporting is activated from the Edit > Preferences > Tax: 1099 menu item on the main toolbar.
In the Additional Info tab assign a VENDOR TYPE of Author to each royalty recipient. This will allow you to filter reports to show only authors or amounts owed to authors.
Tip: Publishers will often have vendor types of Author, PPB, and Prepress. This allows them to filter their vendor list to show only authors, printers or prepress vendors.