Recently, I had a question from a client related to inactivating a 1099 vendor. They were unable to select "Inactive" in the Vendor Card. The vendor status was locked as "Active."
Some common causes for this are:
- The Vendor still has current or unposted transactions.
- There is an active 1099 amount on the account.
- Closed purchase orders for that vendor have not been removed using the Remove Completed Purchase Order Utility.
In this case, they were unable to inactivate the vendor because the vendor had been set up for expense reimbursement in Dynamics GP Project Accounting. Project Accounting may be used to set up vendors as "employees" solely for the purpose of allowing expenses to be entered into Projects using Employee Expense entry with an Employee Expense cost code. We set this up quite often, because it eliminates the need for double entry of expenses in Project and Payables. Expenses are entered into the project, and a payables transaction for that vendor expense reimbursement is created automatically.
One of the steps to configure Project Accounting for this purpose involves setting up an employee card for the vendor. In the employee card, there is a Project option button. In this option window, "Files Employee Expenses" needs to be checked. In order to inactivate a vendor, the "Files Employee Expenses" needs to be unchecked. Once this is done, the vendor card will allow the selection of "Inactive". (Inactivating the employee in the Employee Card does not fix this issue).
The same situation would occur for all vendors (not just 1099) and employees that are reimbursed for expenses using this feature of Dynamics GP Project Accounting, since they would need the Employee/Vendor relationship set up the same way.