Steps
to Adjust 1099 AmountsFrom the Accounts Payable screen, select the Maintenance menu and then Vendors.
At the Vendors screen, enter the ID of the vendor to set up as a 1099 vendor in the Vendor ID field. If the ID is not known, click the down-arrow button or the Find button to select the correct one.
Click the Miscellaneous tab.
Enter the correct type of the federal ID number that will be entered in the Federal ID Type field, or click the down-arrow button to select the correct one. The available types are: Adoption Taxpayer Identification Number, Employer Identification Number, Individual Taxpayer Identification Number, or Social Security Number.
If the Federal ID Type field is completed, the Federal ID field is enabled. Enter the federal ID number of the vendor in the Federal ID field. The number can be up to 9 digits long (plus up to 2 dashes if needed). The system will automatically add the dashes for the federal ID number using the following formats: 1) ## - ####### if the type is Employer Identification Number; or 2) ### - ## - #### if the type is Adoption Taxpayer Identification Number, Individual Taxpayer Identification Number, or Social Security Number.
Note: If the federal ID number is not known at this time, leave the Federal ID Type and Federal ID fields blank, and then make sure to complete the fields before generating a 1099 form for the vendor at the end of the calendar year.
Tip: If the federal ID number entered in this field matches the federal ID number entered for another vendor (or entity), a warning icon will appear to the right of the field; verify the number entered is correct, and if needed, determine if the new record should continue to be added for the vendor or if a record already exists.
If applicable, enter the type of 1099 form (1099-MISC or 1099-NEC) for which to generate for the vendor at the end of the calendar year in the Federal Form Type field, or click the down-arrow button to select the correct one. Enter 1099-MISC to generate a 1099-MISC form to report miscellaneous income for the vendor, or enter 1099-NEC to generate a 1099-NEC form to report nonemployee compensation for the vendor.
If the Federal Form Type field is completed, enter the box number for where to post the year-end totals on the 1099 for the vendor in the Federal Form Box ID field, or click the down-arrow button to select the correct one.
Note: If the Accumulate 1099 Amount field is selected, the default of Box 1 for the 1099-NEC form will appear, but can be changed.
If applicable, in the 1099 Name Format field, enter the format of the fields to print as the recipient name on the 1099 form, or click the down-arrow button to select the correct one. The format designates which fields (from the Vendor File) to print as the name on the 1099 and if there will be a second name for "Doing Business As" (those with DBA included in the format name) that will print as the second line of the recipient name. The available formats are: Additional Recipient Name DBA First Middle Last Suffix, Additional Recipient Name DBA Legal Business Name, First Middle Last Suffix, First Middle Last Suffix DBA Additional Recipient Name, First Middle Last Suffix DBA Legal Business Name, Legal Business Name, Legal Business Name DBA Additional Recipient Name, or Legal Business Name DBA First Middle Last Suffix.
Note: If this field is left blank and a 1099 is generated for the vendor for a particular calendar year, the format of Legal Business Name will be used if Employer Identification Number is specified as the Federal ID Type, or the format of First Middle Last Suffix will be used for all other Federal ID Types. Also, if the Federal ID Type field is completed and the Accumulate 1099 Amount field is selected, the default format will appear, but can be changed (Legal Business Name will be the default if Employer Identification Number is specified as the Federal ID Type, or else First Middle Last Suffix will be the default for all other Federal ID Types).
Tip: If unsure of the format to use for a vendor, refer to the Federal ID field; if the number entered is a Social Security Number, Adoption Taxpayer Identification Number, or Individual Taxpayer Identification Number, then the 1099 should be issued to the individual (the person's name should print first, and if applicable, an additional name as entered in the Legal Business Name or Additional Recipient Name field should print on the second line for "Doing Business As"), or if the number is an Employer Identification Number, then the 1099 should be issued to the company (the company's name as entered in the Legal Business Name or Additional Recipient Name field should print first).
If needed, enter the additional business name to print on the 1099 form for the vendor in the Additional Recipient Name field. The name can be alphanumeric and up to 40 characters long.
Tip: The name entered in this field will only be printed on the 1099 form if a format that includes Additional Recipient Name is specified in the 1099 Name Format field.
If the Additional Recipient Name field is completed, the Print Location field is enabled. In the Print Location field, enter the desired location (Line 1 or Line 2 (DBA)) to specify whether to print the additional name as the first or second line on the 1099, or click the down-arrow button to select the correct one.
Select the Accumulate 1099 Amount field to have the system automatically track the 1099 amounts when entering invoices for the vendor. A checkmark will appear in the box if the field is selected.
Note: Only select this field if a 1099 form should be generated for the vendor.
If the vendor is an organization that is exempt from tax, select the Tax Exempt field. A checkmark will appear in the box if the field is selected.
If desired, enter the date a W9 form was sent to the vendor in the W9 Sent Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the correct date.
If desired, enter the date a W9 form was received from the vendor in the W9 Received Date field. Use the mm/dd/yyyy format or click the down-arrow button to select the correct date.
Click the Save button.
If the Accumulate 1099 Amount field was just selected and the vendor has accumulations, a prompt will appear asking to open the Adjust 1099 Amounts option in order to make the necessary adjustments; click Yes to open the option to make adjustments, or click No to not open the option.