Understanding Supplier Information for FATCA
To comply with the Foreign Account Tax Compliance Act (FATCA), when you pay a supplier and remit the payment to a Foreign Financial Institution (FFI), you must specify the Tax ID of the supplier to be FFI. The Tax ID will be marked as FFI while you file the 1099 form. FFI is associated with the Tax ID and not supplier ID so when you mark the Tax ID as FFI, all the suppliers related to that Tax ID are categorized as FFI.
You use the Work With Supplier Information program (P0451401) to review the tax IDs for their FFI indicator value. This program enables you to insert a new record for Tax ID with its FFI indicator and also to update the FFI flag for existing records. The system stores these records in the 1099 Supplier Information table (F0451401).