1099 Processing and transmission

Throughout the year, you have been processing vendor payments in Business Central. This article describes how to process 1099 reportable payments. The hub for processing payments is the IRS 1099 Form Documents Screen.

This screen provides the following fields:

• Period No.: The reporting period for which a form has been created, based on 1099 invoices and payments.
• Vendor No.: The vendor which has a reportable payment in the period.
• Form No.: The reportable 1099 form for the vendor in the period.
• Status: Open or Released, based on the status.
• Copy B Sent: Marked if Copy B has been sent to the Vendor.
• Copy 2 Sent: Marked if Copy 2 has been sent to the Vendor.

The screen provides the following actions:

• Create Forms: Compiles a 1099 form based on vendor invoices and payments.
• Send Email: Emails the 1099 to the vendor, providing the Consent has been enabled on the vendor card.
• IRIS Transmissions: Compiles the 1099 forms into a transmission to the IRS using the IRIS platform.

1099 Procedures

Before running the Create Forms action, ensure the Vendors Cards are correctly setup with 1099 settings. 

Running the Propogate Function

If you have added 1099 settings to a vendor card after posting invoices and payments, you can use the Propogate Action to retroactively update invoices.

• From the Vendor card, open the IRS 1099 Vendor Form Box Setup screen by clicking Related -> Purchases -> IRS 1099 Setup.
• Click Actions -> Propogate. 
• Specify the date range to update documents for the vendor. Enable Purchase Documents and Vendor Ledger Entries. Note, if invoices from a prior period were paid in the current period, further evaluation of Vendor Ledger Entries may be required.

Creating 1099 Forms for Reporting

NOTE: It is helpful to use Personalization or a Profile to add Receiving 1099 E-Form Consent.

• Open IRS 1099 Form Documents.
• Click Create Forms and provide the following paramters:
  • Period: The IRS reporting period to build 1099's.
  • Vendor No.: You can additionally specify a vendor filter. Leave blank to process all vendors.
  • Form No.: You can restrict for specific forms. Leave blank to process all forms.
  • Replace: If enabled, any existing forms will be recreated. If blank, only new forms for vendors will be added.

Reviewing 1099 Forms

After running the Create Forms action, you can open specific forms for review. The grid contains the 1099 form and box detail for the vendor. The Calculated Amount field is a drill-down displaying the compiled date for the period. Any Adjustment Amounts are reflected. 

After confirming the reportable amount, the form status can be set to Released. Forms must be released before printing or sending with IRIS.

 

Sending 1099 Forms

Emailing

• On the IRS 1099 List, add Receiving 1099 E-Form Consent if you have not already done so. Set a filter for vendors that have provided consent.
• Click Send Email.
• Select Copy B and click OK. Repeat this for Copy 2 and Copy C as needed.

Printing

• On the IRS 1099 List, add Receiving 1099 E-Form Consent if you have not already done so. Set a filter for vendors that have provided consent.

• Open individual forms and print Copy B.

Transmitting to the IRS

• On IRS 1099 Form Documents, click IRIS Transmissions.
• Click Create IRS Transmission. Select the Reporting Period. This will pull in all of the 1099 forms previously built for transmission to the IRS.
  • Click View to see the forms that have been accumulated.
  • Click Send to transmit to the IRS.
  • Accept the terms and conditions.