Step 1: Load 1099 Amounts


Important Reminders


  •  This process reads the Vendor Voucher records (VENVCH), selects those for which the 1099 flag is true, and creates new records in the vendor 1099 database for the calendar selected.


Procedure


  1.  From the Modules Bar:  Procurement → 1099s → Load Tab
  2.  Click Load 1099 Amounts.
  3.  Calendar Year – Required.  Change to 1099 Tax year.
  4. Payer Number:
    •  Select the appropriate payer number (from your vendor payer master file).  There should be a separate payer number for each EIN your organization is responsible for reporting.
    •  If the Payer number is not available, return to Section 3, Step 2.
  5. Minimum Year-To-Date to Select:
    •  Verify or enter the amount.
    •  Only those vendors having 1099 vouchers above or equal to the minimum will be selected.
    •  The amount is normally $600 or more.
  6.  Range on Vendor ID if necessary.
  7.  Range on Fund or Bank ID if your organization has multiple EIN's which will require you to  print separate batches of 1099s.
  8.  Click the Select button.


NOTE


  •  If you find errors after loading the 1099s and make corrections to the Vendor Master information or the individual vouchers, you must run the Load 1099 amounts process again in order to overwrite the incorrect 1099 masters.
  •  Purging the 1099 Master: If you find a 1099 master that was created but should not have been, you will need to purge the 1099 master.  Running the Load process again will NOT remove the erroneous master.  To purge these records, follow this menu path from the resource bar: Other → 1099s → Purge → 1099 Data
    •  If all vouchers for a vendor(s) were unflagged using the Set Payments option in Section 4, the vendor should already have been unflagged in the Vendor Master file prior to the purge (Section 4, Step 2)
  •  To remove purged 1099 Masters records, follow the menu path from the resource bar:  Other → 1099s → Purge → Remove Deleted Records


 Step 2:  View 1099 Master


Important Reminders


  •  By using the VEN1099 master screen, you may view and edit 1099 amounts loaded during the Load 1099 Amounts option on the task bar (Step 1).  The browse screen will display amounts for Nonemployee Compensation.  If a vendor is showing a zero amount, select the record to view the 1099 amount type.  The define list may be changed to display the 1099 amount on the browse list.


Procedure


  •  From the Modules Bar:  Procurement → 1099s → Load Tab
  •  From the Task Bar: View 1099 Masters
  •  From the Range Tab:  Range on Calendar Year.
  •  Click Select.
  •  Double click the highlighted vendor to review.


  • You may delete vendors from this screen by selecting them, flagging them for deletion and saving them.  It is not necessary to repeat Step 1: Load 1099 Amounts if you have deleted vendors in this step.


Payer Information Tab


  • Employer/Payer Number:
    •  For payers with multiple locations, this field may be used to identify the location of the office submitting the information return.
    •  Leave blank if not applicable to your organization.


Vendor Information Tab


Payee Name Control:

  1.  Field is used for Electronic Filing purposes.
  2.  Field information does not print on the 1099 form.
  3. Defaults to the first four characters in the Vendor Master Vendor Name field.
    •  If you are using electronic filing and if the vendor is a sole proprietorship, the first four characters should be the Last Name of the owner.  If the Vendor Master Vendor Name field is not entered LAST NAME, FIRST NAME, you will need to change the Payee Name Control to the first four letters of the owner's Last Name.
    •  In case of a business, it should be the first four significant characters of the business name. (Comes from the Vendor Master Name field).
    •  A dash (-) and ampersand(&) are the only acceptable special characters.
    •  Embedded blanks, extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe ['], should be removed from the Payee Name Control).
  4.  Recipient's Tax ID Number
  5. FIN Type
    •  EIN
    •  SSN/ITIN/ATIN
  6. Recipient's Account Number:
    •  This is an optional field and may be used to designate a checking account, savings account, serial number, or any other number you assign to the payee that is unique and will distinguish the specific account.
    •  Required if multiple 1099s to the same recipient.
    •  Beneficial to include the number of paper forms if your system of records uses the account number rather than the same SSN or EIN identification purposes.
    •  If using reduced rate mail and window envelopes, make sure the account number does not show as the Postal service may not accept these for reduced rate mail.


Amounts Tab


  • Vendor Box Code Descriptions:
    •  Determine into which box the amounts are loaded.  If an amount displays in the wrong box, check the voucher master.  The  voucher's 1099 Type may be incorrect.  Correct the voucher 1099 type in the vendor master, reload 1099 amounts and View 1099 Master to verify change.    
    •  Add 1099 Payments (Screen name:  Change Vendor 1099 Amounts) – 1099 amounts may be added on this screen.  In addition, you may also access the Vendor master file and the 1099 Vendor master range screens here.  (See step 3 below).    
  •  No History Substantiating 1099 payments in Vendor payments – This flag should be turned on if there are no vouchers flagged as 1099 payments, but 1099 amounts have been added through the 'Add 1099 amounts' process.  This flag will prevent the vendor from being purged if it is necessary to run the purge process to make corrections.


 Step 3:  Add 1099 Amounts (Optional)


Important Reminders


  •  The Add 1099 payments button allows you to add additional amounts to the selected vendor 1099 master.  It is normally used when payments have been made to a vendor requiring the completion of a 1099 Miscellaneous  Income form (Return type A), but supporting vouchers are not in your database.  This may be the case if you started using OPENRDA Vendor Payments module after the start of the calendar year and previous payments were not entered in the system.


Procedure


  •  From the Modules Bar: Procurement → 1099s → Load Tab
  •  From the Task Bar: Add 1099 Amounts
  •  Calendar Year – Defaults to the current year.
  •  Payer Number – Defaults.
  •  Return Type – Defaults but can be changed. 1099-MISC is used most frequently.
  •  Vendor Identification – Click on the magnifying glass. (Tip: From the Select Vendor Master Browse, use the binoculars button to limit the Vendors listed to just 1099 Vendors).
  •  Address ID – Select the appropriate vendor address from the scrolled list.
  •  1099 Vendor Flag:
    •  Defaults based on the Default 1099 Payment flag in the Vendor Master.  (True = 1099 Vendor and Blank= Regular Vendor).
    • If defaults to blank:
      • ~And this vendor SHOULD be a 1099 vendor~
        1.  Set the flag to true by checking the boolean.
        2.  When the additional payment is saved, the Default 1099 Payment flag in the Vendor Master will also be set to true.
      • ~And this vendor should NOT be a 1099 vendor~
        1.  Leave the boolean blank.
        2.  The amount will be added to the 1099, but the vendor will NOT be flagged as a 1099 Vendor.
        3.  A save Warning will display upon saving but you can override it.
  • Federal ID#:
    • Verify that the ID is entered in the proper format:
      1.  EIN = XX-XXXXXXX
      2.  SSN = XXX-XX-XXXX   
    •  Defaults to the Vendor Master Federal EIN if the selected vendor is a business.
    •  Defaults to the Vendor Master Social Security or EIN Number if the selected vendor is a sole proprietorship.
    • Defaults to the SSN if the Vendor is an individual.
      •  If blank, you can enter the appropriate number. This will update the Tax (FIN) Identification field in the Vendor Master and the 1099 Master.  This number is necessary in order to print on the 1099s.
      •  A Save Warning displays upon saving if the field is blank but you can override.
    •  FIN Type – Defaults to the type of Federal Identification (EIN or Social Security number) from the selected vendor master.
      •  Enter in total additional 1099 payments. These are vouchers not entered in OpenRDA.
      •  Click Save.
      •  Repeat the above steps if necessary.
      •  Click Cancel.


NOTES


  •  If the vouchers are in your database, but are not marked as 1099 vouchers (or the 1099 type is not correct), you should run the Vendor Vouchers Report (Section 4, Step 3) with the boolean checked for Select 1099 payments flag false'. Some or all vouchers may be flagged as 1099 payments by following this menu path: Procurement → 1099 → Review Tab → Set 1099 Payments           
  •  If you change the Federal ID / Social Security Number and FIN Type, this process will update the 1099 flag in the Load 1099 Amounts and the vendor master file.
  • If the vouchers are not in your database, you may prefer to add the supporting vouchers into the Vendor Payments module.  If the vouchers are added in Vendor Payments, the amounts are brought over when you Load 1099 Amounts.  If you add the missing vendor vouchers using the Add 1099 Amounts, the voucher amounts will be overwritten if you must rerun the Load 1099 Amounts.  To add vouchers in Vendor Payments, do the following:
    •  From the Modules Bar:  Procurement → Vendor Payments
    •  Add Direct Vendor Vouchers → Standard
    •  Type = Balance Sheet
    •  Credit Code – Use the Inter/Intrafund Transfer Account (Ex: 100-9999999)
    •  Debit Code – Use the Inter/Intrafund Transfer Account  (Ex: 100-9999999)
    •  Manual Check – Set to true and provide the check date and number.
  •  This will update the Vendor Master with the 1099 information without affecting the Expenditure Detail Account, the Cash Account or the Expenditure Control Account.
  •  If there are both vouchers and 1099 amounts added, add the missing vouchers last, so that they are not removed if the Purge and Load 1099 Amounts processes are rerun.


 Step 4: Print 1099 MISC Amounts Report


 

Important Reminders


  •  Print this report now to view 1099 amounts that are loaded.   The report will help you to determine if any information is incorrect or missing.  The report may also be used to assist you in completing the 1096 transmittal of 1099 MISC returns as well as verification of the 1099 forms prior to printing.


Procedure


  •  From the Modules Bar:  Procurement → 1099s → Load Tab
  •  From the Task Bar:  1099 MISC Amounts Report
  •  Select Calendar Year – Defaults to the current year.
  •  Override Report Title – Enter an optional title if desired.  The default title is 1099 MISC Report.
  •  Sort by – Sort by Vendor Name, Social Security/Tax Number, or Vendor ID.
  •  Column 1-5 – Set 1099 Types to print in each column.   Since Non-Employee Compensation and Rents are the usual governmental types, it is suggested that these be selected for columns 1 and 2 and saved in defaults.
  •  You may range on vendor ID or 1099 payer number.
  •  Click Select.