How-To Process a 1099 in Business Central

February 14, 2019

How-To Process a 1099 in Business Central

Written by:

manager

With every new year, processing 1099 statements become a necessity for every accounting team. To make the processing simpler, we have provided the following information on how you can set up, process, and report 1099 information within Dynamics 365 Business Central.

1099 Setup

To set up a 1099 vendor: Open the vendors list and select the vendor that you will be setting up as a 1099 vendor.

Within the Payments Fast tab, select the IRS 1099 Code for the vendor and enter their Federal ID no.

Click the back arrow in the top left of the vendor card to save the change.

Transaction Processing

When entering transactions for the vendor, the IRS Code will automatically be added to the transaction under the Shipping and Payment Fast Tab. The code may be overridden to a different 1099 code or removed for this transaction.

Within the lines section, the IRS 1099 Liable field will be automatically populated if an IRS 1099 Code is assigned to a document. If the line item is not 1099 liable, you can unmark this field.

Once the transaction is posted, within the Vendor Ledger Entries you will find that the IRS 1099 Code and amount will be automatically populated. Once the transaction has been paid, the total will be accounted for in the 1099 total.

1099 Reporting

To review the 1099 vendor amounts, you can use the Vendor 1099 Information report. The report can be found in the vendor lists window under Reports > General or within the vendor card under Report > Vendor 1099 Information. This report includes all 1099 information for the vendors that been set up using the IRS 1099 Form-box tables.

If you do not want to run a report, another option is the Vendor 1099 Statistics window. To access this window, open the vendor card and under the Navigate menu select History > 1099 Statistics.

Within the Vendor 1099 Statistics window, you will have an overview of the 1099 amount totals for the selected vendor.

1099 Corrections

Corrections to vendor 1099 amounts can be done within the Vendor ledger entries window. In this window, you can review the list of invoices and assign the IRS 1099 Code and amount, so the total 1099 amounts are reflected appropriately.

Once you are finished correcting the transactions you can run the “Vendor 1099 Information” report to verify the totals.

Printing 1099’s

The 1099 reports are separated by 1099 category. For example, if printing the 1099 Miscellaneous report, you can open the vendors page and select Report > General > Vendor 1099 Misc.

In the report options window, enter the calendar year for which you are processing 1099 for and you then have the option to run it for one vendor or for all 1099 Miscellaneous vendors.

If you would like to run a test report, you can mark the “Test Print” option.

(NOTE: The 1099 reports will only be generated for all vendors above the minimum reportable amount for the 1099 code assigned and the payments have been applied to the purchase invoices within the same calendar year.)

To review the minimum amounts of each 1099 IRS Code:

Open the global search and search for “1099 form boxes”. Select the highlighted option.

In the 1099 Form Boxes window, you will find the 1099 codes and their minimum reportable amounts. Click on the “Edit List” option to modify any of the amounts and these changes will be saved once you close out of the window.