AP 1099

Note 1099 Processing is only applicable to companies that report their accounts in the United States of America.

Overview
1099 Set up
1099 Data Entry Implications
1099 Processes

Overview

The IRS assesses tax against miscellaneous income. The IRS requires you, dependent upon certain conditions, to withhold or report the payments you make to suppliers for services rendered. To report payments, you must provide the IRS with 1099 information on various media, usually hard copy forms or magnetic tape. The IRS strictly regulates how you provide this information. Withholding requires that you deduct a percentage of the payments you make to suppliers. e5 AP supports reporting and withholding of 1099 information.

1099 Set up

You set up 1099 tax processing by activating controls on screens within e5 AP.

The following table lists the fields applicable to 1099 processing and the screens on which they are located. Ensure that you enter the following fields according to your company's specifications.

Screen	Fields
AP Company Controls screen MGAB, W/Hold format.	Tax Authority Supplier Tax Rate No. of Days to Tax Prompt Tax Contractor Number Tax Contractor Name Withholding Payment Analysis
AP Company Controls screen MGAB, Payment Anal format.	Transmitter Control Code
Supplier Purchasing Controls screen MPBD, 1099 W/hold format.	WHO Eligibility Indicator Tax Identification Number 1099 Reportable 1099 Filing Name
Payment Analysis Codes screen MPAL.	PA Code Reportable Reporting Threshold IRS 1099 Code
Supplier Purchasing Controls screen MPBD, Payment Analysis format.	Payment Analysis In Use Payment Analysis Code Required Default Code
Supplier AP Controls screen MPBE, Supplier format.	Invoice Payment

1099 Data Entry Implications

While you enter transactions in e5 AP, you can enter a payment analysis code for each transaction line. Depending upon how you set up the payment analysis code, the system does or does not report the transaction line amount on the 1099 reports.

If you set up a default payment analysis code for a supplier, you can override the code during data entry.

You can change the line level payment analysis code after you enter a transaction using the Payment Analysis Amendment option. Refer to Payment Analysis Transaction Detail Amendment (Header) screen MGDL for information on how to change a line's payment analysis code. You can use this same screen to change a line's payment analysis code after you pay a supplier.

However, if you change the company or supplier parameters to begin withholding money from the payments you make to a supplier, the system does not retroactively withhold amounts from transactions that you have already paid.

1099 Processes

The following three processes encompass the 1099 reporting process:

GJ1	1099 Reporting	Produces 1099 reports, for internal use, that you can use to verify 1099 information throughout the year.
GJ2	1099 Filing	Produces 1099 paper forms or magnetic tape to submit to the IRS.
GJQ	1099 Final Update	Updates the system to reflect the reports to the IRS.

See Background Processing for more information about submitting processes.

NOTE The menu path shown is the default for the system. Your company may have customised menu options, so the path shown may not be accurate. Please contact your system administrator for details.