Setting Up Companies

For each company that submits 1099 forms, you must specify the following information on the company's address book record:

• Address number

• Contact name

• Mailing name

• Person/corporation code

• Tax ID

• Phone number

If the address book number of the company is different from the company number, you must additionally ensure that the company's address book number is set up in the Company Address Book Number field in the Company Numbers and Names program (P00105).

The company setup requirements include the following tasks:

• Updating company records

• Updating company address book information

• Managing companies that pay within legal entities

Updating Company Records

You must verify the company's address book number assigned to a company record. The system uses this information to do the following:

• Print the company name on 1099 returns as the payer

• Combine company records for 1099 processing

Typically, the company's address book number is the same as the company number. However, if the company number is not the same as the address book number for the company, you must provide a cross-reference to it by entering the address book number of the company in the Company Address Book Number field in the Company Numbers & Names program (P00105).

The system does not use company 00000 for 1099 reporting. The system uses company 00000 for reporting purposes and uses the value of the Company Address Book Number field from company 00000 for one-time supplier payments; therefore, do not change the value of the Company Address Book Number field.

Do not enter a value in the Company Address Book Number field if the company number and company's address book number are the same.

Do not assign the same company address book number to more than one company record.

Navigation

From Organization & Account Setup (G09411), choose Company Numbers & Names

1. On Company Numbers & Names, locate a company.

   

2. Choose A/R and A/P Current Period (F4).

   

3. Perform one of the following:

   • If the value of the company's address book number is the same as the company number, leave the Company Address Number field blank.

   • If the value of the company's address book number is different from the company number, enter the company's address book number in the Company Address Number field and click Change.

Updating Company Address Book Information

When you submit 1099 forms, you designate both payer and transmitter companies. The transmitter company is the company that sends the 1099 data to the IRS. The transmission file might contain several payer companies, but only one is the Transmitter Company. Before processing 1099 returns, review the address book record for each payer company and the transmitter company to ensure that it contains the correct mailing name, address, contact name, and so on.

Navigation

From Address Book (G01), choose Address Book Revisions

1. On Address Book Revisions, locate the company address book record.

   

2. Verify the information in the following fields:

   • Mailing Name

   • Phone Number

   • Address

   • Postal Code

   • City

   • State

   • Country

3. On Address Book Revisions, choose Address Book Control Revisions (F13).

   

4. On Address Book Control Revisions, verify or complete the values in the following fields and click Change:

   • Person/Corp Code

     The value for the company address book record should be C.

   • Tax ID

5. Click Exit (F3) to return to Address Book Revisions.

6. On Address Book Revisions, choose Who's Who Information (F5).

   

7. On Who's Who, review or complete the following fields for the contact person for the transmitter company and click Change:

   • Mailing Name

   • Phone

   • WWType (Enter or verify the value is C for contact person.)

Managing Companies that Pay within Legal Entities

If your business includes several companies with unique tax IDs that make payments to each other, you must generate a 1099 for the supplier company. You cannot use the company address book record as the supplier address book record too. You must set up a new supplier address book record for the company, just as you would any other supplier record, assign it a person corporation code of either P (individual) or N (non-corporate entity), and use it to process vouchers and payments.

For example, Williams Landscaping, Inc. (a company that you own) must make payments to Smith Construction Company (your company). The payment to Smith Construction Company requires that you create a 1099 return from Williams Landscaping, Inc. to the supplier Smith Construction Company. To do this, you must create a new address book record and supplier record for Smith Construction Company and assign it a person/corporation code of N. You use this supplier address book record to enter vouchers for Smith Construction Company and you assign them the company number for Williams Landscaping, Inc. When you process 1099s, the system generates a 1099 return to Smith Construction Company (the supplier) from Williams Landscaping, Inc.

In this scenario, Smith Construction Company has two address book records. The address book records represent the:

• Company (person corp/code = C)

• Supplier (person corp/code = N)

If you did not set up a separate supplier record to process inter-company payments, you can set it up and use the 1099 Adjustments program (P045101) to correct the payments made to the wrong company address book record and to create the adjustment for payments to the new supplier address book record.