Section 4: Verify/Correct 1099 Vendors and Vouchers : RDA Systems Inc

Step 1: Verify 1099 Vendors

Important Reminders

Use the Report of 1099 Vendors to print:
- A list of vendors flagged as 1099 Vendors.
- Verify that ALL 1099 Vendors have an assigned Tax ID number in the Vendor Master.
- Sole Proprietorship = Use EIN or SSN of the individual being paid. (IRS prefers SSN)
- Individual = Use SSN
- Verify that the ID is entered in the proper format:
  1. EIN = XX-XXXXXXX
  2. SSN = XXX-XX-XXXX
Verify that all 1099 Vendors classified as sole proprietorship have a 1099 Individual Name (owner's name) assigned in the Vendor Master. This name prints first on the 1099

in the Recipient Name field. The Vendor's Name (dba) prints second on the 1099.

Procedure

From the Modules Bar: Procurement → 1099s → Review Tab
From the Task Bar: Report of 1099 Vendors
On the Select and Range Tab: Optional Report Title – enter a user-defined title or leave blank for the default title of 1099 vendors.
Selection Criteria -
- For a list of ONLY 1099 Vendors, set the Select when Default 1099 Payment FALSE flag to FALSE and the Select when Default 1099 Payment True flag to to TRUE.
- For a list of all Vendors, set both of the above flags to TRUE. This may be helpful if you have Non-1099 Vendors that have vouchers flagged as 1099 payments.
- Select Ranges if necessary.
- Click Select.
Report Displays:
- Vendor ID
- 1099 Vendor Name
- 1099 Status
- 1099 Type
- Tax ID
- Type of tax ID (EIN or SSN)
- 1099 Name
- W-9 status

NOTE

If the Tax ID number is missing, access the Vendor Master and enter the number. The Vendor Master Default 1099 Payment flag will automatically set to TRUE. Reset to FALSE if this vendor should NOT be classified as a default 1099 vendor. As vouchers are added for a non-1099 vendor, vouchers may be flagged as a 1099 payment on an individual basis.
If the Tax ID number is not assigned in the Vendor Master, the Tax ID will NOT print on the Vendor's 1099.
If a Vendor's Default 1099 Payment flag has been erroneously set, access the Vendor master and change the Default 1099 Payment flag accordingly (TRUE = 1099 Vendor, FALSE = Regular or Non-1099 Vendor).

Important Reminders

This step is only necessary if you need to change the 1099 status of a voucher(s) for a particular vendor. It also makes it possible to unflag all or some vouchers as 1099 payments for a specified vendor. If no changes are necessary, skip this step.
- From the Modules Bar: Procurement → 1099 → Review Tab
- Enter the vendor ID or use the magnifying glass to select one.
- A variety of range criteria is available for voucher selection as well as the ability to specify the type of 1099 payment it is.

If you are unflagging all vouchers for a particular vendor, you will need to: 1) remove the flag in the Vendor Master file indicating that they are a 1099 vendor, and 2) purge the 1099 Master file or delete a specific 1099 vendor from it. After you have completed Section 4, instructions for deleting a specific vendor from the 1099 master file or purging the whole 1099 master are covered in Section 5.

Procedure

From the Modules Bar: Procurement → 1099 → Review Tab
From the Task Bar: Vendor Vouchers Report
From the Range Tab: Sort by Vendor ID or Vendor Name.
User Defined report Title – Enter or leave blank for default title.
Range on desired data:
- For OpenRDA Users:
  - Enter the Calendar Year at the top of the range screen.
  - You may range on Calendar 1099 amount or Calendar Gross amount. This will allow you to print vouchers in total for all or selected vendors. If you want to view only those vendors with 1099 payment vouchers totaling over $600: Calendar 1099 amount range would be $600.00 to $999,999,999,999.99.
Select Tab:
- Set the flag for Select When 1099 Payment False to FALSE. Set the Select When 1099 Payment True to TRUE.
- To view all 1099 and non-1099 vouchers for a vendor, set both flags to TRUE and range on the Vendor ID.
Click Select.

Notes

Report prints a list of Vouchers flagged as 1099 Vouchers.
Use this report to verify the 1099 status of a vendor and it's associated vouchers..

Vendors - Are there vendors flagged as 1099 Vendors that should not be flagged as 1099 Vendors? Are there vendors NOT flagged as 1099 Vendors that should be flagged?
Vouchers - Are vouchers missing from the report? If so, you will need to change the 1099 Voucher flag to TRUE. This can be done in mass or manually. Are there vouchers on the report that should NOT be included? If so, you will need to change the 1099 Voucher flag to FALSE. This can be done:
- Manually – Access the Vendor Master and select the voucher to be changed. Click on the Process/Status tab and use the Set 1099 Values button to manually set the 1099 flag to FALSE or TRUE for the voucher selected.
- In Mass – Use the Set 1099 Payments process (Instructions in Step 2).

Important Reminders

This step is only necessary if, after running the Vendor Vouchers Report, there are one or more vouchers that have the wrong calendar year assigned to them. After changing the calendar year in the voucher, follow the steps below:

Procedure

From the Modules Bar: Procurement → 1099
From the Resource Bar: Maintenance → Change/Set → Zero Vendor Calendar Year File
From the Select and Range Tab: You can range on vendor ID or name for a selected calendar year.
Proceed to Step 5.

Important Reminders

This step will reestablish the calendar year data file and is necessary if you have:
- Zeroed vendor calendar year file (Step 4 above).
- Changed the 1099 status of a particular vendor or any vouchers.

Procedure

From the Modules Bar: Procurement → 1099
From the Resource Bar: Maintenance → Change/Set → Reestablish Calendar Year Data File
Range on Vendor and/or Calendar Year.
Click the Select button.

NOTE: If informational reporting is done on 1099s for the fiscal year, you may need to Re-establish the Fiscal Year Data file if the 1099 status of a vendor(s) or voucher(s) is changed. This is available from the Maintenance → Change/Set Menu. (This process has no effect on 1099s)