The Accounts Payable system includes programs to produce information for the Internal Revenue Service (IRS) for the following 1099 forms:
The system also includes the functionality that allows you to submit information to the IRS electronically.
See Also :
The JD Edwards World Payroll system also includes programs to produce information for the IRS. See the United States Payroll Year-End Processing Guide 2019 for detailed information.The U.S. federal government requires that you complete 1099 forms for various tax reporting purposes. You send 1099 forms to suppliers who are sole proprietors or non-corporate entities, as well as to corporations for payments, such as medical or health care.
To produce the information for the documents required by the IRS for 1099 processing, your software includes features that allow you to do the following:
Manage address and tax information for your 1099 suppliers.
Produce your 1099 information based on data in the Accounts Payable system, the General Accounting system, or both.
Produce reports to review and verify your 1099 data before final processing.
Adjust amounts for your suppliers if errors are found.
Print 1099 forms by company and distribute them to your suppliers.
Produce 1099 returns for electronic submission to the IRS for federal or combined federal and state reporting.
This section contains the following topics:
Assemble the following IRS forms and publications:
IRS Forms and Publications 2019, General Instructions for Forms 1099, 1098, 5498, and W-2G.
IRS Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Electronically.
IRS Form 4419, Application for Filing Information Returns /Electronically. This form is an application to file electronically. Companies that meet IRS requirements to file 1099 returns electronically must file this form.
Information in this guide that restates government regulations is deemed accurate, but should not be solely relied upon. Due to yearly regulatory changes, you should verify your specific 1099 requirements. If you have specific questions, contact the IRS (800) 829-4933 or review the IRS web page at http://www.irs.gov.
See Also:
The software for processing year-end information is available for JD Edwards World release A9.2 and all subsequent releases.
Use the current cumulative update software for your release level. A cumulative update from a previous tax year might not be valid for reporting information for the current tax year.
The documentation in this guide is based on JD Edwards World release A9.4. If you use another release of the software, you might notice differences between what appears in the documentation and what appears on your screen.
To meet the deadlines imposed by the IRS, 1099 processing requires the efforts of many employees in a company and should begin several months before the end of the calendar year to allow ample time for researching and updating information.
The following list contains some of the tasks for preparing for 1099 processing. This list is not exhaustive and should be used to promote discussion among the employees who are responsible for preparing 1099s at your company.
Decide which method or combination of methods you want to use to process your 1099 forms and prepare your system accordingly.
Ensure that the address book information for your 1099 suppliers is in a format acceptable to the IRS.
Verify the value of the person/corporation code for each of your suppliers. All suppliers that should receive a 1099 form must have a code of either P (individual) or N (non-corporate entity).
Ensure that you have a Tax Identification Number (TIN) for each of your suppliers that receive a 1099 form. The IRS could impose penalties or fines for each missing or incorrect tax ID on 1099 returns that you submit.
Assemble IRS publications and forms for the current 1099 reporting year.
Use Appendix A, "Checklist for 1099 Processing" to use as a guideline for processing 1099 returns.
You can process 1099 returns using one or both of the following methods:
1099 A/P Ledger Method
1099 G/L Method
To help you determine the number of suppliers for whom you must generate a 1099 and which method of 1099 reporting you should use:
Run the Update YTD Voucher Amount program (P04820) to update the YTD- vouchered amounts and the Address Book Master file (F0101).
Run the Supplier Analysis report (P04602), which uses year-to-date information from the Address Book Master file.
Review each supplier for whom you generated payments during the calendar year.
You use the 1099 A/P Ledger Method if you can identify which 1099 form and box to update based on a category code value, instead of an expense account. Also, you must use this method if you do not have corresponding records in the Account Ledger file (F0911). For example, you might transfer A/P information from another system for payment processing only and do not use JD Edwards World General Ledger system.
When you use the 1099 A/P Ledger Method, the system summarizes the pay item amounts that you identify on paid vouchers into 1099 reportable amounts for each supplier. You identify these eligible voucher pay items by entering or updating the 1099 Reporting field (AC07, also known as category code 07) with a value in the A/P Ledger file (F0411). Then, you use data selection in the Build AP Workfile program (P04514FP) to select the records for each value.
When you build the 1099 A/P Workfile (F045143), the system accumulates the amounts for the specific voucher pay items for the form and box that you identify in the Type of Return processing option. Typically, if you process multiple types of 1099s forms and multiple boxes, you use the 1099 Reporting field to identify the form and box, and then use the 1099 field (TNN), which is also known as the Flag for 1099 field, for exceptions.
If you process only one box and form, you do not need to update the 1099 Reporting field. The program retrieves all vouchers for suppliers based on the value of Person/Corporation Code (P or N) when you build the 1099 A/P Workfile (F045143) and processing options allow you to specify the form and box to update.
You use the 1099 G/L Method when you want to use the expense account number as the basis for updating the 1099 form and box. This method uses Automatic Accounting Instructions (AAIs) to identify the general ledger object accounts to use in 1099 processing. Each AAI indicates the form and box to use to accumulate amounts for the ranges of object accounts you define when you build the 1099 G/L Workfile (F045141).
You can also use this method for records created using the two-way and three-way voucher match program in the Procurement system.
You can use a combination of the 1099 A/P Ledger and 1099 G/L Methods. Using both methods, you can select paid vouchers from the F0911 with expense distributions based on the object account ranges in the AAIs (1099 G/L Ledger Method), as well as include paid vouchers that might be excluded from the AAI ranges or are exceptions (1099 A/P Ledger Method).
This table describes the differences between the 1099 A/P Ledger and 1099 G/L Methods:
| A/P Ledger Method | G/L Method |
|---|---|
| Use this method if you have data for a complete or partial year.
If you convert transactions from another system into the Accounts Payable Ledger file (F0411) and did not convert the detail transactions in the F0911, we recommend that you use the A/P Ledger method. |
Use this method if you have data for a complete or partial year.
If you convert transactions from another system into the Account Ledger file (F0911) and your chart of accounts is stable and consistent across companies, we recommend that you use the G/L method. |
| Creates the 1099 A/P Workfile (F045143) early in the process. | Creates the 1099 G/L Workfile (F045141) at the end of the process. |
| Uses the value of the 1099 Reporting field (AC07) to select records. | Uses Automatic Accounting Instructions to select records. |