Updating 1099 Information
You can update 1099 information for your suppliers. If you paid a supplier before you set up the supplier as a 1099 supplier, run the Update Income Tax Details Utility. Or, if you need to update only a few invoices, you can update the 1099 types in the Distributions window.
Adjusting 1099 Amounts
The following are suggestions for adjusting transactions for 1099 suppliers. If you need to add an amount to a 1099 supplier, for example if you paid the supplier through another system, you can adjust an invoice paid during the year in the Distributions window of the Invoice workbench. Add a distribution for the amount you want to add for 1099 purposes, including the Income Tax Type. Also add an ofsetting distribution with a null Income Tax Type. If you did not pay the supplier during the year using Oracle Payables, then complete the following steps:
Prerequisites
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:
- 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 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.
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.