Assigning Category Code 07 Values to Supplier Address Book Records
After you set up valid values in UDC table 01/07, you must ensure that each supplier voucher has a category code 07 value assigned to it. The easiest method of assigning this value to the voucher is to set up a default value in the supplier's address book record. When you update category code 07 in the address book record, the system retrieves the value and updates the corresponding field for all voucher pay items that you generate for that supplier.
Review the following examples to consider how the type of a supplier's business affects the category code 07 value that you assign to the address book record and voucher:
Johnson Specialty Painting supplies contractor services. Based on the services this contractor supplies, you must report payments in box 1 on the 1099-NEC form. Therefore, you must assign category code 07 a value of B1 (box 1 for nonemployee compensation, or contractor) to Johnson Specialty Painting.
Douglas LTD Partnership supplies rental space. Based on the property you lease to this partnership, you must report payments in box 1 on the 1099-MISC form. Therefore, you must assign category code 07 a value of A1 (rent) to Douglas LTD Partnership.
Smith & Sons supplies of patent licenses. Based on the royalty payments to this supplier, you must report payments in box 2 on the 1099-MISC return. Therefore, you must assign category code 07 a value of A2 (royalties paid for use of a patent) to Smith & Sons.
You can assign a category code 07 value manually to individual supplier records or you can update the value globally for multiple records that you specify. To determine which methodology to use, you might want to first audit for blank category code 07 values.
Assigning supplier category code 07 values includes one or more of the following tasks:
Identifying for Blank Category Code 07 Values
Manually Assigning Category Code 07 Values
Globally Assigning Category Code 07 Values
After you update supplier address book records with a value in category code 07, you run the Update A/P Records with A/B Info program (P04802) to update the value to existing vouchers.
If you do not want to provide a default value to category code 07 in the supplier's address book record, you can update the value directly on vouchers that you enter or you can enter 1099 Adjustments. See Updating Voucher Pay Items for 1099 Processing
Identifying for Blank Category 07 Values in Address Book
If you are not sure whether you have updated category code 07 on all suppliers eligible for 1099 reporting, you can run a version of the W-9 Exception Report (P01301) to identify suppliers that have a valid person/corporation code (N or P), but do not have a value in category code 07.
You use this report to locate address book records with blank category code 07 values. You must copy version XJDE0004 and modify the data selection.
To ensure you select the 1099 Reporting field, choose More Information (F4) and verify the Name is ABAC07.
Using the specified data selection assumes that you did not run the Update YTD Voucher Amount program (P04820) for the new 1099 calendar year.
For example, if you are processing 1099s for 2023, but you ran P04820 in 2024, the Amount Vouchered YTD field represents only those amounts for 2024. In this case, you must delete the values for Amount Vouchered YTD in the data selection and, instead, include data selection for Amount Vouchered PYE (A6APPD).
After you determine which suppliers are missing the value in category code 07, you can assign the appropriate value manually or globally, and then run Update AP Records with AB Info (P04802) to update the value to corresponding vouchers for the supplier.
Navigation
From Annual 1099 Processing (G0422), choose W-9 Exception Report
Data Selection
Use the following data selection:
Person/Corporation Code equal to *Value
Amount Vouchered YTD greater than *Zero
1099 Reporting equal to *Blank
Values for Person/Corporation Code are P and N.
Manually Assigning Category Code 07 Values to Supplier Address Book Records
If you have only a few supplier address book records to update, you can easily update the value of category code 07 on the records manually.
Navigation
From Annual 1099 Processing (G0422), choose Supplier Master Information
On Supplier Master Information, complete the Supplier Number field to locate a supplier and click Inquire.
Choose Category Codes (F14).
On Category Codes, enter a two-character value from UDC table 01/07 in the Category Code 07 field and click Change.
Globally Assigning Category Code 07 to Multiple Supplier Address Book Records
If you have many supplier address book records to update with the same category code 07 value, you can run the Global Update Category Codes program (P01490). This program provides a processing option for to specify the category code 07 value to use, and then you use data selection to specify the supplier address book records to update. This program also provides a processing option to run the program in Proof Mode first, so you can review the records selected prior to updating them. JD Edwards World strongly recommends that you run this program in Proof Mode prior to running it in Final Mode.
Because this program globally updates records, it is imperative that only authorized users have access to run this program.
Before You Begin
Back up the Address Book Master file (F0101)
Navigation
From A/B Advanced and Technical Operations(G0131), choose Global Update Category Codes