56 Overview to 1099 Preparation

This chapter contains these topics:

56.1 Objectives

  • To highlight JD Edwards World 1099 capabilities

  • To explain how to prepare your 1099 data for processing

56.2 About 1099s

The JD Edwards World World Accounts Payable system helps you produce 1099s, an income tax reporting form required by the U.S. federal government for many types of payments. Federal regulations require that you annually report payments made to suppliers using 1099 forms. You send 1099s to suppliers of goods and services who are not corporate entities, such as individuals and partnerships.

You can choose to produce 1099s using one of the following two methods:

  • General Ledger (G/L) method

  • A/P Ledger method

The method you choose depends on amount of data in the Account Ledger table (F0911).

The 1099 process requires you to complete the following tasks:

This section describes the first three tasks. These tasks, plus the fourth task, producing 1099s, are described in more detail in the United States 1099Year-End Processing Guide. JD Edwards World publishes this guide at the end of every calendar year. This guide includes specific information for the reporting year and detailed instructions for each 1099 program. You can access and download the guide from JD Edwards World Documentation.

1099 preparation consists of:

  • Reviewing 1099 address book information

  • Choosing a 1099 method

  • Building the 1099 work files

56.3 How Do You Prepare for 1099 Reporting?

When preparing for 1099s it is important to consider the following:

  • Begin preparing for 1099s by reviewing address book information before year end to allow plenty of time for researching and updating supplier and voucher information.

  • You must have information in the G/L or A/P Ledger tables. The system requires this information to calculate 1099 information for specific suppliers. For this reason, you should not purge the following tables until after you print 1099s:

Table Description
Address Book Master (F0101) Do not purge address book records for any supplier with A/P activity in the calendar year you are reporting.
Supplier Master (F0401) Do not purge supplier master records for any supplier with A/P activity in the calendar year you are reporting.
A/P Ledger (F0411), A/P Matching Document (F0413), and A/P Matching Document Detail (F0414) If you are using the A/P Ledger method, do not purge vouchers paid in the calendar year you are reporting. You must have information in these tables for all vouchers paid in the 1099 reporting calendar year for which a 1099 might be required. If it is necessary to purge these tables, you must restore the A/P Ledger Purge (F0411P), A/P Matching Document Purge (F0413P), and A/P Matching Document Detail Purge (F0414P) tables before you produce 1099s.
Account Ledger (F0911) In addition to the above, if you are using the G/L method, do not purge the Account Ledger for the calendar year you are reporting. You must have information in this table for all journal entries involving transactions in the 1099 reporting calendar year for which a 1099 might be required. If it is necessary to purge this table, you must restore the Account Ledger Purge table (F0911xx, where xx is the reporting year) before you produce 1099s.