Knowledge Base

15124: Vendor Setup (DAS)


Drake Accounting®: How do I set up a vendor? 


Typically you would identify a vendor as anyone from whom the client makes regular purchases of goods or services, and for whom an invoice is needed. When you update prior year contractors and vendors within a client from CWU to Drake Accounting®, the software converts the contractors to vendors. A contractor is a vendor that enters into a contract with the customer who receives a 1099 if they are paid more than $600.


Setting up a Vendor

You can set up new vendors at Payables > Vendor Setup.

  1. Click New
  2. Enter a unique Vendor Code (numbers, letters, or both) of up to 20 characters, preferably something that will help you recognize the vendor. 
  3. Enter data in at least one of these fields: Company NameFirst NameLast Name
  4. Choose the appropriate 1099 Options for this vendor: 
    • If the vendor does not require a 1099, select Do NOT generate a 1099.
    • If the vendor requires a 1099, leave Do NOT generate a 1099 unchecked.
      • Do not select this option if federal and/or state withholdings are going to be setup
  5. Complete other fields and tabs, as appropriate.
    • All fields Identified with require entries before the vendor can be saved.
  6. Review your entries.
  7. When finished, click Save.

You can edit an existing vendor by double-clicking the vendor, entering or correcting information for the vendor, and clicking Save.

Vendor Withholding 

Drake Accounting® now offers the ability to set up separate federal and state withholding under the Payables module for each vendor.

  1. Go to Payables > Vendor Setup > Withholding tab.
  2. When you check Calculate Federal or Calculate State, you are required to enter an amount.
  3. You can choose to apply a Dollar/Cents amount or a Percentage amount to be withheld from a vendor's payment.

For more information about Form 1099 filing requirements, see the IRS FAQ Am I Required to File a Form 1099 or Other Information Return? 

Deleting a Vendor

To delete a vendor, go to Payables > Vendor Setup. Select the vendor, then select Terminated in the Status droplist. 

If you also do not want to see those vendors displayed, go to Payables > Options and check the option Suppress display of Terminated Vendors.

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