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Adjusting 1099 Amounts

Prerequisites

   The supplier is recorded as a 1099 supplier. See: Suppliers Subject to Income Tax Reporting Requirements.

   Enable the Allow Pre-Date Payables option. See: Payment Payables options.

   Enable the Use Batch Controls Payables option. See: Invoice Payables Options.

   If you are already in the next year, open the last period in the prior year in both GL and AP, for example, December 1997. Controlling the Status of AP Accounting Periods.

   You do not use Automatic Offsets.

   The Allow Adjustments to Paid Invoices Payables option is enabled.

   Set up a unique pay group, such as "1099". See: QuickCodes.

   To record 1099 payments made outside of Payables:

1. Enter invoices in invoice batches, and use the following defaults. See: Entering Invoice Batches.

• Terms = Immediate

• GL Date = Date in opened period of the tax reporting year.

• Pay Group = unique Pay Group such as "1099"

2. For each invoice, enter 1099 information:

• Invoice Date = Date in opened period. For example 31-DEC-97.

• Invoice Number = 1099 Adjustment

• Invoice Amount = 0 (zero)

Enter Distributions:

• Enter one line with the amount you want to record, and use an account such as your suspense account. Enter the correct income tax type for this distribution.

• Copy the distribution. Make this an offsetting distribution by changing the amount so the two distributions net to zero. Delete the Income Tax Type field for the second distribution.

3. Submit the Invoice Register to confirm that all invoice amounts are zero. See: Invoice Register.

4. Submit Payables Approval for the invoice batch. See: Approval.

5. Submit a payment batch to pay the zero-amount invoices. Use the Pay Group you assigned to the invoices. Use a date in the opened period as the payment date, for example, 31-DEC-97. See: Creating Zero-Amount Payments.

6. Post to General Ledger. Use a date in the opened period as the posting date. For example, 31_DEC-97. See: Payables Transfer to General Ledger Program.

7. Review the Accounts Payable Journal Entry Audit Report to verify that all invoices and payments net to zero. See: Accounts Payable Journal Entry Audit Report.

8. Post the journal entry in your General Ledger.

9. If you had changed any Payables options to complete this process, set them back.

10. Close the GL and AP periods that you opened to complete this process.