Assigning a Vendor to an Expense

Knowing how much you spent is only half the picture. Knowing who you paid is equally important for vendor negotiations, tax preparation, and portfolio analysis.

How to Assign a Vendor

When creating or editing an expense:

1. Locate the Vendor dropdown field.
2. Search for the vendor by name (e.g., "Mike's Plumbing").
3. Select them from the results.

The expense is now permanently tagged with this vendor, linking the cost to their profile in your Vendor Directory.

Creating a Vendor Inline

If you're logging an expense for a contractor you've never used before:

1. In the Vendor dropdown, type their name.
2. If no results appear, click "Create New Vendor" (or the equivalent inline creation option).
3. Enter their basic details (Name, Company, Phone, Email).
4. The new vendor is instantly added to your directory and automatically selected for this expense.

You don't need to leave the expense form, navigate to the Vendor Directory, create the vendor there, and come back. The inline workflow saves significant time.

Why Vendor Tagging Matters

1. Annual Vendor Spend Analysis

By tagging every expense with a vendor, you can filter your exported data and sum the total spent per contractor per year. If you discover you paid Vendor A $15,000 last year, you have leverage to negotiate volume discounts.

2. 1099 Tax Reporting

In the United States, if you pay a contractor more than $600 in a calendar year, you're legally required to issue them a 1099 form. Having every expense tagged to a vendor makes it trivial to filter and calculate your 1099 obligations at year-end.

3. Comparing Bids

When a pipe bursts and you need emergency service, having historical data showing that Vendor A charges $175/hour but Vendor B charges $125/hour for identical work allows you to make instant cost-effective decisions.