How to Setup and Process 1099's in Dynamics 365 Business Central

Originally posted on December 5, 2019

1099 Vendor Setup


Setting up a 1099 vendor in BC is easy.  Simply navigate to the vendor and open the Vendor Card.




Within the Payments Fast tab select the IRS 1099 Code for the vendor and enter their Federal ID No.  Selecting their Tax Identification Type is optional.







Transaction Processing


When entering transactions for the vendor (Purchase Invoice/Purchase Credit Memo) the IRS 1099 Code will automatically be added to the transaction under the Shipping and Payment Fast Tab.  The code may be changed to a different IRS 1099 Code or removed for this transaction if it’s not truly needed.





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





Once the transaction is posted within the Vendor Ledger Entries window you will see that the IRS 1099 Code and IRS 1099 Amount will be automatically populated.  

*Note: if your payment to the vendor includes discounts the IRS 1099 Amount will not reflect the discounted amount paid. Rather it will show the full 1099 amount and the discount will be taken into account when the 1099 is printed. You will see this in my screenshots later. 






Review


Vendor 1099 Information


To review the 1099 vendor amounts you can use the Vendor 1099 Information report.  Search for Vendor 1099 Information from the ‘Tell Me What You Want Me To Do’ search





Once you have the Vendor 1099 Information window open you can filter by a specific vendor number (optional) and a date (required).










1099 Statistics


Another way to review the vendors 1099 information is by reviewing the 1099 Statistics window.  Vendor Card > Navigate > History > 1099 Statistics





The 1099 Statistics window offers an overview of the unique 1099 Codes and amounts for the vendor selected.






1099 Corrections


Corrections to vendor 1099 amounts can be done within the Vendor ledger entries window.  Within this window you can review the list of invoices and assign the IRS 1099 Code and amount.  Click on the ‘Edit List’ option to modify any of the 1099 Amounts or IRS Codes.







Printing 1099’s


The 1099 reports are separated by 1099 categories, so you’ll need to process each on separately. 
          · Vendor 1099 Div – dividends and distributions
          · Vendor 1099 Int – interest income
          · Vendor 1099 Misc – miscellaneous income





Once you have report options window open enter in the Calendar Year (required) you are processing 1099’s for and you can additional filter by a specific vendor number (optional) if you wish. If you would like to run a test report you can simply toggle on the Test Print option.





*Note: The report will not have any headers to tell you what the information means, the intention is that this would be printed on a 1099 form.







1099 Form Boxes


The 1099 Form Boxes window stores the Minimum Reportable amounts for 1099’s to be printed. The minimum reportable amount should match up to the IRS threshold on amounts of money that needs to be paid to a vendor in order for the vendor’s income to be reported.  





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.








Comments

Popular posts from this blog

My DynamicsCon experience

How to use MICR fonts in Dynamics 365 Business Central AND modify the check layout

Voiding a check in Dynamics 365 Business Central