What screen changes are delivered in the new 1099 functionality?

This article hightlights changes to the 1099 fields on the following screens:

• Vendor Card
• Purchase Order/Purchase Invoice
• Vendor Ledger Entries

The following new screens have been added. The usage of new fields and transaction processing are covered in this Knowledge Base article: 1099 Processing and transmission

• IRS Reporting Periods - Defines the reporting periods for the 1099's. This will mirror calendar years.
• IRS 1099 Vendor Form Box Setup - Assigns the Reporting Periods, Forms, and Form Boxes to the vendor.
• IRS 1099 Vendor Form Box Adjustments - Specifies an adjustment amount for the 1099 form box that will be added to the amount from vendor ledger entries when the 1099 form document is generated. This is useful if you migrated to Business Central mid-year and allows simple entry of 1099 amounts from your legacy system.
• IRS 1099 Form Documents - This screen is the hub for building the 1099 forms for the reporting year, tracking transmission to the vendor, and tracking transmission to the IRS.

Vendor Card

These fields have been added to the Vendor Card in the Payments section:

• IRS Reporting Period: The current IRS reporting period where the vendor has a vendor form box setup
• IRS 1099 Form No.: The current IRS form where the vendor has a vendor form box setup
• IRS 1099 Form Box No.: The currenct box for the selected 1099 form.
• Receiving 1099 E-Form Consent: reflects that the vendor has provided consent to receive their 1099 via e-mail. This will cause the system to email instead of print.
• E-Mail for IRS: The vendor e-mail address where they would like to receive their 1099.

A new Action has been added to the Vendor Card to setup the vendor specific details. Click Related -> Purchases -> IRS 1099 Setup. This opens the screen where you can maintain vendor 1099 details. Which will be described later in this article.

Purchase Order/Purchase Invoice

The corresponding fields from the Vendor Card are added to the Purchase Order and Purchase Invoice. These will default from the Vendor Card and you can override on a specific transaction. This is added to the Invoice Details section on the Purchase Order and to the Shipping and Payment section of the Purchase Invoice and Posted Purchase Invoice. 

Purchase Order in Invoice Details:

Purchase Invoice in Shipping and Payment:

Posted Purchase Invoice:

Vendor Ledger Entries

When an invoice is posted and the IRS 1099 fields are populated, the values will be copied to the Vendor Ledger Entries.

IRS Reporting Periods

The IRS 1099 Reporting Periods screen defines 1099 reporting periods to the IRS. This will generally follow the calendar year. The following fields are defined:

• No.: This is a user-defined identifier for reporting periods. The best practice is to use the four-digit calendar year.
• Starting Date: The beginning date for the reporting period. Generally you will use January 1.
• Ending Date: The ending date for the reporting periods. Generally you will use December 31.
• Description: A text description for the reporting period. 250 characters.
• Forms in Period: Defines how many 1099 Forms are defined for the period. In 2025, you will find DIV, INT, MISC, and NEC.
• IRIS Transmission: Reflects that you have transmitted using IRIS.

The screen defines the following actions:

• Copy Setup: Allows you to copy the existing form box setup to a new reporting period. We will provide guidance for this in future years.
• Forms: Allows you to view the forms, with further drill-down to the form boxes. Microsoft is expected to maintain this for future years.
• Vendor Setup: Opens the IRS 1099 Form Box Setup screen, which is where you assign reporting periods, forms, and form boxes to a vendor.
• Adjustments: Allows you to define a 1099 adjustment. Ordinarily, the 1099 processing will be based on posted Vendor Ledger Entries. If you went live mid-year, you can use this screen to record 1099 amounts from your legacy system.
• Documents: Opens the 1099 Form Documents screen for processing 1099 documents.
• Create IRIS Transmission: Prepares the documents for transmission to the IRS using IRIS.

 

IRS 1099 Form Box Setup

This screen can be opened from IRS Reporting Periods or from the Vendor Card by clicking Related -> Purchases -> IRS 1099 Setup. Enter the following fields:

When opened from the Vendor Card, it's implied you're working with a vendor and this field is not enterable.

• Period No.: The period you are assigning a form box.
• Form No.: The 1099 form you are assigning to the vendor for the period as a default.
• Form Box No.: The box from the form to assign as a default. 

When openned from IRS Reporting Periods, it's implied you are working with a specific year and this field is not enterable.

• Vendor No.: The vendor id you are assigning to the period.
• Form No.: The 1099 form you are assigning to the vendor for the period as a default.
• Form Box No.: The box from the form to assign as a default. 

IRS 1099 Form Box Adjustments

This screen allows you to enter an adjustment amount for the 1099 form box that will be added to the amount from vendor ledger entries when the 1099 form document is generated. This is useful if you migrated to Business Central mid-year and allows simple entry of 1099 amounts from your legacy system. Enter the following fields:

• Period No.: The period you are entering an adjustment.
• Vendor No.: The vendor for which you are entering an adjustment.
• Form No.: The IRS form for which you are entering an adjustment.
• Form Box No.: The form box for which you are entering an adjustment.
• Amount: The adjustment amount for the period.

IRS 1099 Form Documents

This screen is the hub form processing 1099's. Usage details are provided in this knowledge base article: 1099 Processing and transmission