How Income Tax Detail Updates Are Processed

The Income Tax Type and Income Tax Region fields are required for all invoice distributions of United States (US) federally reported suppliers for 1099 reporting.

You can update or report on these fields by submitting the Update and Report Income Tax Details process on the Scheduled Processes page.

Submit the process to:

• Correct inaccurate or missing values in the Income Tax Type or Income Tax Region fields on invoice distributions for US 1099 suppliers.

• Correct invoice distributions for non-US 1099 suppliers that have income tax types assigned.

  • If a supplier isn't a US 1099 supplier, but has invoice distributions with income tax types, ensure that the supplier isn't federally reported. Also ensure that the Federal Income Tax Type field is blank on the Edit Supplier page. Then submit the process to correct the invoice distributions.

  • If a supplier isn't currently designated as a US 1099 supplier but should be, change the supplier to federally reported. In this case, the invoice distributions are accurate, so you don't have to submit the process. The US 1099 reports include invoices for the supplier.

Settings That Affect Income Tax Detail Updates

The following settings affect how the Update and Report Income Tax Details process updates income tax types and income tax regions on invoice distributions:

• Supplier setup

• Tax reporting options

• Process parameters

Note: If you enable the Include withholding distributions in income tax reports option, the Update US 1099 Withholding Tax Distributions process runs automatically. The process updates existing withholding tax distributions that are missing income tax types or income tax regions.

This table describes the parameters for the Update and Report Income Tax Details process.

Parameter	Description
Business Unit	Name of a business unit.
Supplier Name	Name of a supplier. Leave blank if the process is submitted for all US 1099 suppliers.
From Accounting Date, To Accounting Date	Inclusive accounting date range.
Income Tax Type Action	Action to perform on the Income Tax Type field of invoice distributions for the suppliers that you specify. No action Report: Prints the report. Update: Updates the Income Tax Type field of invoice distributions with incorrect or missing income tax types to the default income tax type for the supplier. Prints the report.
Income Tax Region Action	Action to perform on the Income Tax Region field of invoice distributions for the suppliers that you specify. No action Report: Prints the report. Update: Updates the Income Tax Region field for invoice distributions with incorrect or missing income tax regions depending on the Update Income Tax Region To parameter. Prints the report.
Update Income Tax Region To	Value to set for the Income Tax Region field for invoice distributions with incorrect or missing income tax regions.

How Income Tax Detail Updates Are Processed

If you run the process in report mode, the Update Income Tax Details report lists the number of invoice distributions that require correction. These invoice distributions are updated when you run the process in update mode. Update mode also lists the number of invoice distributions that the process updates.

The following table describes the sections of the Update Income Tax Details report.

Section	Description
Income Tax Type	Lists the supplier name and number of invoice distributions that don't have income tax types for US 1099 suppliers. Lists the invoice distributions that have income tax types for suppliers that aren't defined as US 1099 suppliers.
Income Tax Region	Lists the supplier name and number of invoice distributions with incorrect or missing income tax regions.

Note: For withholding tax distributions, the process updates only the Income Tax Region field value. It doesn't update the Income Tax Type field value.