Understanding the A/P Ledger Method

The A/P ledger method generates 1099 returns for all payments that are made to suppliers with a person/corporation code of P (individual) or N (noncorporate entity), and that meet the minimum requirements established by the U.S. Internal Revenue Service (IRS).

Use the A/P ledger method to generate 1099 returns when one or more of these conditions exists:

• Most or all of the payments to suppliers with a person/corporation code of P or N are reportable on 1099s.

• You want to incorporate 1099 data from an outside system.

• You use retainage.

  See Understanding 1099 Processing, Methods for 1099 Processing, Method Used with Retainage.

The A/P ledger method enables you to use category code 07 or the 1099 flag to limit the vouchers that you select for 1099 processing.

To create the 1099 A/P Worktable (F045143), the 1099 A/P ledger method uses data that is stored in these tables:

• Accounts Payable Ledger (F0411).

• Accounts Payable - Matching Document (F0413).

• Accounts Payable Matching Document Detail (F0414).

You can enter adjustments, including data that is not supported by records in the F0411, F0413, and F0414 tables, directly into the records in the F045143 table.

Important: If you use the A/P ledger method, do not purge vouchers you paid in the calendar year that you are reporting. You must have information in the F0411, F0413, F0414, F43121, and F43121 tables for all vouchers that you paid in the calendar year, and for which a 1099 return might be required.