Preparing and Printing 1099 Forms

Overview

The Veracross Accounting system possesses the capability of recording 1099 information, and calculating and printing 1099s for all designated vendors.

The beginning of this workflow requires that a vendor be flagged as requiring a 1099, and that a Federal Tax ID and 1099 Payment Code be assigned to the vendor.   All subsequent Accounts Payable invoices created for these vendors will inherit their 1099 properties.  However, whenever necessary, a user can override the 1099 properties for a specific AP invoice.

The next step in the workflow occurs when payments are generated for these vendor invoices.  The resulting disbursement records inherit the 1099 properties from the associated AP invoices.   As with the AP Invoices, a user can override the 1099 properties for a specific disbursement.

Finally, at year end,  there is a process established that accumulates annual 1099 information for all vendors, and  prints the 1099 forms.  These amounts are based upon 1099-related disbursement items posted during the calendar year.

Step 1: Review and validate 1099 Disbursement Items

As noted above, the amounts presented on 1099 forms will result from totals derived from disbursements made to vendors.  Validate the 1099 amounts assigned to these source transactions by following the directions below:

  1. On the Accounts Payable homepage, under the Other Reports section, select the Disbursement Items – 1099 link.
  2. Set the date range for Posting Date to reflect calendar year begin and end dates
  3. Run the query
  4. Validate the 1099 amounts for each transaction presented
  5. There are 2 options available for correcting data on the report.  First, if an item has a 1099-reportable amount and its deemed not to be reportable; remove the 1099 Code from the disbursement item. On the other hand, if an item is lacking a 1099-reportable amount and it should be reportable; assign an appropriate 1099 Code to the item.

 Step 2: Initialize 1099 Amounts for Vendors

Before you update the amounts for 1099 for the current year, you must zero out all 1099 data from prior years that still exists in the vendor’s record.

  1. On the Accounts Payable homepage, under the Processing section, select the Vendor Maintenance Processing link.
  2. Specify Option code:          1 – 1099 Preparation
  3. Specify 1099 Prep Option:  Zero 1099 Amounts?
  4. Enable all of the 1099 Categories (see below)
  5. Click Add Vendor/Invoice Processing.Zero Amounts

Step 3: Calculate and Update 1099 Amounts for Vendors

Once all the invoices are correctly marked as Reportable for 1099 or not, this function may be run to calculate the current 1099 Amounts for Vendors.

  1. On the Accounts Payable homepage, under the Processing section, select the Vendor Maintenance Processing link.
  2. Specify Option code:       1 – 1099 Preparation.
  3. Specify  Begin Date and End Date – these must represent the posting date range for the disbursement items being totaled.  This is usually January 1 to December 31st of the calendar year for which you are printing forms.
  4. Enable all of the 1099 Categories (see below)
  5. Click Add Vendor/Invoice Processing.

1099 Prep

 Step 4: Print 1099 Forms

These 1099 Forms are pre-formatted and if any changes need to be made please contact your Account Manager.

  1. On the Accounts Payable homepage, under the Processing section, select Print 1099 Report.
  2. Select the Action Menu and choose Batch Print Documents.
  3. Select the Record ID Field of Org ID.
  4. Select the Document of Vendor IRS Form 1099 and select Go.
  5. Click Print to PDF and print your forms.

It is HIGHLY recommend that you initially print the 1099s on plain paper before using the actual forms.  You can use this initial draft to verify that they are properly formatted and aligned.