Independent Consutlants

I have asked a similar question but I really need some clarifacation because this is all new to me. We have independent consultants who purchase product from us and then at the end of the month we cut a check for them for a percentage of what they sold over the month. Some of you said I have to list them as a customer and a vendor. How does that work? Do I sell them the product as a customer and then cut them a check as a vendor off of what was sold theough the month. Does this track information for the 1099. I have everything else completely set up in the company, This is the only part that I just cannot seem to wrap my mind around, If someone can please explain this in long form or laymens terms so I can understand it I would greatly appreciate it.