1. United States 1099 Year-End Processing Guide
  2. Ledger Methods for 1099 Processing

Ledger Methods for 1099 Processing

You can process 1099 returns using one or both of the following methods:

  • 1099 A/P Ledger Method

  • 1099 G/L Method

To help you determine the number of suppliers for whom you must generate a 1099 and which method of 1099 reporting you should use:

  • Run the Update YTD Voucher Amount program (P04820) to update the YTD- vouchered amounts and the Address Book Master file (F0101).

  • Run the Supplier Analysis report (P04602), which uses year-to-date information from the Address Book Master file.

  • Review each supplier for whom you generated payments during the calendar year.

1099 A/P Ledger Method

You use the 1099 A/P Ledger Method if you can identify which 1099 form and box to update based on a category code value, instead of an expense account. Also, you must use this method if you do not have corresponding records in the Account Ledger file (F0911). For example, you might transfer A/P information from another system for payment processing only and do not use JD Edwards World General Ledger system.

When you use the 1099 A/P Ledger Method, the system summarizes the pay item amounts that you identify on paid vouchers into 1099 reportable amounts for each supplier. You identify these eligible voucher pay items by entering or updating the 1099 Reporting field (AC07, also known as category code 07) with a value in the A/P Ledger file (F0411). Then, you use data selection in the Build AP Workfile program (P04514FP) to select the records for each value.

When you build the 1099 A/P Workfile (F045143), the system accumulates the amounts for the specific voucher pay items for the form and box that you identify in the Type of Return processing option. Typically, if you process multiple types of 1099s forms and multiple boxes, you use the 1099 Reporting field to identify the form and box, and then use the 1099 field (TNN), which is also known as the Flag for 1099 field, for exceptions.

If you process only one box and form, you do not need to update the 1099 Reporting field. The program retrieves all vouchers for suppliers based on the value of Person/Corporation Code (P or N) when you build the 1099 A/P Workfile (F045143) and processing options allow you to specify the form and box to update.

1099 G/L Method

You use the 1099 G/L Method when you want to use the expense account number as the basis for updating the 1099 form and box. This method uses Automatic Accounting Instructions (AAIs) to identify the general ledger object accounts to use in 1099 processing. Each AAI indicates the form and box to use to accumulate amounts for the ranges of object accounts you define when you build the 1099 G/L Workfile (F045141).

You can also use this method for records created using the two-way and three-way voucher match program in the Procurement system.

Combination of 1099 A/P Ledger and 1099 G/L Methods

You can use a combination of the 1099 A/P Ledger and 1099 G/L Methods. Using both methods, you can select paid vouchers from the F0911 with expense distributions based on the object account ranges in the AAIs (1099 G/L Ledger Method), as well as include paid vouchers that might be excluded from the AAI ranges or are exceptions (1099 A/P Ledger Method).

This table describes the differences between the 1099 A/P Ledger and 1099 G/L Methods:

A/P Ledger Method

G/L Method

Use this method if you have data for a complete or partial year.

If you convert transactions from another system into the Accounts Payable Ledger file (F0411) and did not convert the detail transactions in the F0911, we recommend that you use the A/P Ledger method.

Use this method if you have data for a complete or partial year.

If you convert transactions from another system into the Account Ledger file (F0911) and your chart of accounts is stable and consistent across companies, we recommend that you use the G/L method.

Creates the 1099 A/P Workfile (F045143) early in the process.

Creates the 1099 G/L Workfile (F045141) at the end of the process.

Uses the value of the 1099 Reporting field (AC07) to select records.

Uses Automatic Accounting Instructions to select records.