Hi there everyone.

Thank you for taking the time to join this thread. I'm here to help you prepare your 1099s in QuickBooks Online (QBO).

If you wish to exclude the expense reimbursements in the totals for 1099s, you have the option to remove it so it will not show on the 1099 report. I'd be glad to walk you through the whole steps:

1. Go to Expenses.
2. Click the Vendors tab.
3. Click the Prepare 1099s.
4. If you've already started preparing Prepare 1099s, just click Continue your 1099s.
5. Click Next until you reached the step 2 for Accounts.
6. Under Box7: Nonemployee Compensation, click the drop down and make sure to remove the check mark for Reimburse.
7. Click Next, until your Finish preparing 1099s.

On the other hand, you can customize the 1099 Transaction Detail Report to Accrual basis instead of Cash basis.

Here's how:

1. Go to Reports on the left menu.
2. Under Expense and Vendors, click the 1099 Transaction Detail Report.
3. Fill in the radio button for Cash under Accounting method.
4. Click Run report.

I'm still here if you have other questions while working with 1099s in QuickBooks Online. Feel free to keep in touch.