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General
You can track vendor payments for the purpose of printing the 1099-Miscellaneous, 1099-Dividend, and 1099-Interest , and 1099-Nonemployee Compensation forms. When entering an invoice, you can apply the invoice to one of the types of 1099 forms. You can also select the appropriate box number on the 1099 form to use to record the invoice amount. The 1099 payment history can be recorded for each vendor for all four forms and for all appropriate boxes.
You can specify whether 1099 forms are printed based on the minimum year-to-date payment amount for individual Form 1099 boxes. In Form 1099 Tax Reporting, click Minimum YTD, and enter the amounts in the Minimum YTD Payment window.
All fields relevant to 1099 form reporting are available only if the 1099 Reporting check box is selected in Accounts Payable Options. For 1099 vendors, Business or Individual must be selected in the Vendor Type field in Vendor Maintenance.
For more information, see Print or eFile 1099 Forms.
When entering an invoice in Accounts Payable Invoice Data Entry or Manual Check and Payment Entry, form and box number to use to record the invoice payment. These fields default to the values entered for the vendor in Vendor Maintenance.
Note The Social Security number and/or identification number appears on the 1099 form.
You must record an invoice for each 1099 form and box number. Any invoice that contains amounts to record for multiple 1099 forms and/or box numbers must be recorded as two or more separate invoices.
When entering an invoice for payments that are subject to withholding or forfeitures, you must create two invoices.
Create the first invoice for the gross amount of the payment and record it to the appropriate 1099 form and box number.
Create the second invoice to enter the amount of the withholding or forfeiture as a negative invoice and record it to the appropriate 1099 form and box number.
Creating two invoices makes sure that the vendor is paid the net amount and both 1099 box numbers are updated correctly. Select both invoices for payment. Although the 1099 form and box number can be selected during invoice data entry, the 1099 payment amounts are not actually recorded until the payments are updated after the Check Register or Manual Check and Payment Register are printed.
Note Withholding and forfeiture amounts are changed from negative to positive (or vice versa) when they are recorded to 1099-MISC Boxes 4 and 16, 1099-DIV Boxes 2 and 3, and 1099-INT Boxes 2, 4, and 5.
You can also select either the 1099-Miscellaneous or 1099-Nonemployee Comp form when entering a document in one of the following Purchase Order tasks:
Purchase Order Entry
Receipt of Goods Entry
Receipt of Invoice Entry
Return of Goods Entry
The Default 1099 Calendar Year field in Accounts Payable Options is used to track current-year payment amounts to report on 1099 forms. The 1099 form payment history is recorded on a calendar-year basis, based on the date of payment.
The 1099 calendar year is tracked separately from the current Accounts Payable calendar year, allowing your accounting period to be on a noncalendar-year basis. You can perform period-end processing or year-end processing for Accounts Payable independently from form 1099 printing.
The default 1099 calendar year in Accounts Payable Options can be incremented automatically when 1099 forms are printed. Performing Accounts Payable year-end processing does not affect the default 1099 calendar year.
Although the 1099 form payment history is recorded for each vendor, you must produce and retain supporting reports that include detailed 1099 payment information for audit purposes.
Before printing 1099 forms, if you retain invoices for the full calendar year, print the Accounts Payable Trial Balance Report for paid invoices and print the 1099 information for the calendar year. You can fill the report to support the 1099 forms sent to vendors.
If you do not retain the paid invoices for the full calendar year, print the Accounts Payable Trial Balance report just before closing each month. On the Accounts Payable Trial Balance report, print paid invoices and 1099 information. You can fill the report for each month to support the 1099 forms that are sent to vendors at year end.
Troubleshooting
If the 1099 figures from a previous year print on 1099 forms, perform any of the following to resolve the issue:
Verify the current year is entered in the Default 1099 Calendar Year field in Accounts Payable Options.
For more information, see Purge Vendor 1099 Payment History.
