When a merchant is added to expense management the expense gets posted to the respective vendor on QuickBooks Online if there is a match.If there is no match, it may be posted to credit card misc. Since users make purchases from merchants who may not be in the vendor list you're maintaining in QuickBooks Online, some expenses may be posted to credit card misc.

If your accountant is interested in running vendor-based reports to track expenses made with a particular merchant, they may not be able to do so if the. expense is posted to credit card misc.

Auto-creating a new vendor in QuickBooks Online when a new merchant is added in expense management will help track expenses made with merchants outside the vendor list you are maintaining in QuickBooks Online.

To enable this feature in your QuickBooks integration, go to the Configuration tab and select Advanced settings.

Scroll down and toggle on the Auto-create merchants as vendors option.

Scroll down and select Save to finish

When this setting is enabled, if a foreign merchant added in expense management doesn't have a corresponding match in the QuickBooks Online vendor list, the integration will auto-create a new vendor on QuickBooks Online and assign the respective transaction to the vendor. If not enabled, the transaction will be recorded as credit card misc when no match is found in QuickBooks Online for a merchant added in expense management.

Note: This feature is unavailable when you Import Vendors from QuickBooks Online since it restricts employees from adding new vendors.

If you're already importing vendors from QuickBooks Online and would like to enable the Auto-Create Merchants as Vendors feature, you have to disable Import Vendors from QuickBooks Online. Make sure you delete all the vendor records stored in expense management by following the steps to remove imported vendors/merchants from expense management.

In your admin settings, select Expenses from the left panel and then select Merchants.

Select all the merchants using the checkboxes, and select Delete.

​

Your users will be able to add new Merchants (vendors) in the expense form once you remove the imported vendors from expense management.
​

If you have any more questions about auto-creating merchants as vendors in Quickbooks Online, reach out to our support team at support@capitalone-fylehq.com.