The company name in the vendor master file should be the legal name, which is line 1 on the W-9 (assuming the vendor completed the W-9 correctly). Do not set up the vendor using a DBA (doing-business-as name, line 2 of a W-9); the IRS matches the Taxpayer ID Number to the legal name on line 1. If you set the vendor up using the name on line 2, it will not match and you will get a B-notice. If your vendor master has an additional field for a separate DBA or “remit to” name, you can use that, and your checks can be issued to the DBA. But use the legal name to set up the vendor, and for the 1099s.
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