Entering Payment Adjustments
To ensure proper 1099 reporting, you might need to enter adjustments for your payment transactions to account for:
Retainages
Partial Payments
Voided Payments
Discounts
You enter payment adjustments for a supplier, after you run the Create 1099 Audit File program (P045144).
You can create payment adjustments to increase or decrease a payment amount at the voucher level for the current reporting year. The system creates the payment adjustment record as a Type 4 record in the 1099 Audit File and automatically updates the Closed Item field to 1 so that the system retains the records for audit purposes in the event that you need to rerun the Create 1099 Audit File program for the current 1099 reporting year. If you do have to rerun the P045144 for the current 1099 reporting year, you must verify the validity of the Type 4 records and determine if you need to adjust the amount again or delete it.
After you enter payment adjustments, you can change or delete them. The system displays any existing payment adjustments; you can make only one payment adjustment for each account number within a voucher transaction. If you need to change the information on a payment adjustment, access the 1099 - Audit File Revisions screen to update the information.
The system summarizes the Type 3 and Type 4 adjustment records by the 1099 form and box, supplier or payee, and company when you build the G/L workfile.
Navigation
From The G/L Method (G04221), choose Audit File Review
On Audit File Review, complete one or more of the following fields and click Inquire.
Supplier Number
Calendar Year
Document Number
Company
Record Code
Obj/Sub
Locate the transaction you want to update and enter 1 in the Option field.
On 1099 -Audit File Revisions, complete the following fields and click Enter, Add or Change:
G/L Date
Amount
Explanation - Remark
The system redisplays the screen after adding an adjustment with a C in the Action Code field.
Click Exit (F3) to access Audit File Review.
On Audit File Review, click Enter to redisplay the new (record type 4) adjustment transaction.
Click Exit (F3).