Understanding Supplier Setup

The information that you set up for suppliers must meet the Internal Revenue Service (IRS) specifications for Form 1099. As part of the 1099 process, you must review address book records for suppliers to ensure that you have the required information that meets IRS requirements. Begin preparing for 1099 processing early enough to review address book records, enter corrections, and still meet the 1099 deadline. Give yourself sufficient time to research and update records. If the supplier information is incorrect, the IRS can reject the returns and impose fines for each incorrect 1099.

For each supplier that is eligible for 1099 processing, you must provide this information in the address book record:

• Legal name

• Mailing name and address

• Tax identification number (TIN)

• Person/Corporation Code with value P (individual) or N (noncorporate)

You might also need to provide this information:

• Default value for Address Book category code (01/07) if you use category code 07 for the A/P Ledger method.

• Foreign supplier, if the mailing address is outside of the U.S.

• Tax relationships, if you need to combine suppliers with duplicate tax IDs.

Supplier information is stored in these tables:

• Address Book Master (F0101)

• Address Book - Who's Who (F0111)

• Address Book - Contact Phone Numbers (F0115)

• Address by Date (F0116)

• Supplier Master (F0401)