• Confirming Payees are Vendors
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• Confirm that all payees that will require a Form 1099 are on the Vendor list (Lists > Vendors List). 
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• ·        If there are any names on the Other List (Lists > Other Names List), single click on the name, choose Other Names > Edit > Change Type > Vendor > OK.  This activity will move the name and related transactions to the vendor list. 
• ·        If a customer name has been used (Lists > Customer: Job List), a new vendor needs to be created with a slightly different name (Lists > Vendors List > Vendor > New) then all transactions using the customer name will need to be corrected to use the new vendor name or enter a check for the vendor with the total amount paid for 1099 purposes then enter a deposit without the vendor reference using the same general ledger account. The net effect in the bank account will be zero. 
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• Then, go back to the customer list and delete the incorrect name to ensure that the wrong one will not be chosen in the future.
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More information on this topic

Form 1099