A 1099 may not print for a vendor for the following reasons:
- The vendor is not set up to be a 1099 vendor.
To check this, click on the Cards menu, point to Purchasing and click Vendor. Enter a Vendor ID and click the Options button. In the Vendor Maintenance Options window, make sure a Tax Type and 1099 Box are selected. (Note: Selecting or changing these options will only take effect going forward and will not update any past history.)
- Make sure the correct 1099 Type is selected in the Print 1099 window as the vendor is set up for.
Navigate to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing and select Print 1099. Verify the 1099 Year and 1099 Type selected is the same as the vendor is set up for.
- Check to make sure the vendor has exceeded the minimum amounts in the 1099 Setup window.
The vendor must meet established minimum amounts in order for a 1099 to print. To check what the minimum amounts are for each 1099 Type and 1099 Box, navigate to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Purchasing and click Payables. In the Payables Management Setup window, click the 1099 Setup button.
For example, in order for a Tax Type of Miscellaneous and 1099 Box number of 7, the vendor must have at least $600.00 of payments made in the calendar year (that were marked as 1099able). If the vendor has less than $600.00, then the 1099 form will not print for this vendor.
- Invoices are still in open status and not paid. The 1099 amounts will be reported in the year according to the 'paid date/apply date' of the payments applied to the invoices.
- The vendor was set up as 1099able 'after' the invoices were paid.
- Verify the 1099 amount field on the invoice is populated. If the vendor is set up to be 1099able, the 1099 Amount field in the Payables Transaction Entry window should automatically populate. However, the user may be editing the 1099 Amount field to $0.00 prior to posting the invoice.
To check older invoices, click on Inquiry, point to Purchasing and select Transaction By Vendor. Enter the Vendor ID and make sure History is included. Select the historical invoice in question and click on the Document Number link to zoom back and view the 1099 Amount field on the invoice. (Note: If the transaction originated in POP, when you drill back you will see a 1099 Amount field in the Receivings Transaction Inquiry Zoom window. The field could have been zeroed at at time of posting by a user.
FREQUENTLY ASKED QUESTIONS:
Q1: How are 1099 values updated?A1: The 1099 Details are updated according to when an invoice is paid out/applied. Consider the example below:
Scenario 1 - Invoice Date is 11/27/2012; Payment Date is 12/11/2012 - This invoice will be included in the 1099 for year 2012.
Scenario 2 - Invoice Date is 11/27/2012; Payment Date is 1/11/2013 - This invoice will be included in the 1099 for year 2013.
Scenario 3 - Invoice Date is 5/1/2012 and has not yet been paid out - This invoice will not appear on a 1099 until it is paid out.
Note: the Historical Aged Trial Balance (HATB) Report will remove the invoice off the report based on the document date of the check that is applied to the invoice.
Q2: How do you update 1099 amounts for vendors that were not setup as 1099 vendors or that where switched half way through the year?A2: You can update vendors to be 1099able using any of the following method:
- Method 1: Manually update the 1099 Details window. Click on Cards, point to Purchasing and click 1099 Details. Any changes made to this window will update the 1099 that is to be printed. (Note: If a reconcile is done, your edits to this 1099 window will be lost.)
- Method 2: Use the 1099 Modifier that is included in Professional Services Tools Library (PSTL). This method will update all invoices entered for the calendar year if the vendor was not previously marked as 1099able.
- Method 3: Update 1099 Information window - Navigate to Tools, point to Utilities, point to Purchasing and click Update 1099 Information.
For Microsoft Dynamics GP 2010 and Microsoft Dynamics GP 10.0, the Update 1099 Information window can only be used if an incorrect tax type was used. It will only allow the vendor to be moved from one tax type to another.
For Microsoft Dynamics GP 2013, if you mark 'Vendor and 1099 Transaction' radio button, you will also have the option for 'Not a 1099 Vendor' in the TO and FROM pick lists, which will allow for additional functionality to modify a vendor as 1099able retroactively for the year, or to unmark a vendor that should not have been marked as 1099able for the year. This new functionality will change the 1099 status on the vendor going forward, as well as update the 1099 information with all the 1099 documents amounts for the year, and visa versa.
- Method 4: In Microsoft Dynamics GP 2013, there are two new features that allow you to edit 1099 information per Transaction or per Vendor.
-Edit 1099 Transaction Information - A new window has been added in Microsoft Dynamics GP 2013 where you can manually edit 1099 information per transaction. Click on Transactions, point to Purchasing, and click Edit 1099 Transaction Information. Only 1099 vendors are displayed in this window. The transaction information (with a 1099 amount) for the vendor selected will be displayed. For debit type documents (invoices), you can edit the Tax Type, Box Number, and 1099 Amount on open and history transactions. For credit type documents (credit memos, returns), you can only edit the Tax Type and 1099 Amount. Documents are displayed in the functional currency. Click the Process button to save the changes keyed, and print the PM Update 1099 Trx Information Audit report that lists the changes made.
-Update 1099 Information per vendor - As already discussed in Method 3 above, in Microsoft Dynamics GP 2013, by utilizing the new option for Not a 1099 Vendor in the TO and FROM fields as appropriate, you can mark a vendor (and transactions) as 1099able for the year that was not previously marked as 1099able, or remove the 1099 information for a vendor that was marked as 1099able in error for the year.
Q3: What documents will update 1099 amounts?A3: Below is how 1099 amounts are updated per document type:
1. The invoice has a 1099 Amount and has been posted, and applied to Credit Memo that does not have 1099 Amount. When you go to the 1099 details window you will see the 1099 amount.
2. The invoice has a 1099 Amount and has been posted and applied to a return that does not have a 1099 amount. When you go to the 1099 details window you will see the 1099 amount.
3. The invoice has a 1099 Amount and has been posted and applied to a computer check or manual check. When you go to the 1099 details window you will see the 1099 amount.
4. Voiding a check and causing the invoice to go back into open, the 1099 details window will be reduced by the amount of the check that was voided.
Q4: What documents will not update the 1099 amount?A4: The scenarios will not update the 1099 amount:
1. The invoice has a 1099 Amount and has been posted and applied to a Credit Memo that also has a 1099 Amount. When you go to the 1099 details window you will not see the 1099 amount because they netted each other out.
2. The invoice has a 1099 Amount and has been posted and applied to Credit Memo that also has a 1099 amount. When you go to the 1099 details window you will not see the 1099 amount because they netted each other out.
3. Voiding an open invoice will not affect the 1099 Amount.
4. An invoice with a 1099 amount that is either saved or posted, but not applied.
5. If the
1099 amount on the invoice was manually cleared by the user at the time the user entered the invoice, it will not update the 1099 information since the 1099 Amount field is 0.00.
6. If a credit memo is keyed with a 1099 Amount and not yet applied.
Q5: If I run a reconcile, what 1099 data will be changed?A5: If you run a reconcile, these fields will be corrected:
Changes made to the 1099 Details window (or the PM00202 table to the TEN99ALIF) will be corrected according to the detail records when doing a summary reconcile.
Changes made to the Payables Summary window (or the PM00204 to the TEN99AMNT) will be corrected according to the detail records when doing a summary reconcile.
-Changes made to the PM30300 (TEN99MNT) will cause the 1099 details to change when doing the a calendar reconcile.
-If a Credit Memo was entered with a 1099 Amount, it will not show in the 1099 Details window. If the record was supposed to show in the window update PM30300 set Credit1099Amount and run the calendar reconcile. (Be sure to see if the document it was applied to also has a 1099 amount, as they may have netted each other out.)