1099 Processing
Organizations that provide certain kinds of income to vendors must file an information return (Form 1099) with the IRS. The information return shows how much income the vendor earned during the course of the tax year. It also shows how much Backup Withholding or 3402(t) Contract Withholding was taken against a vendor (if applicable).
In Advantage Financial, 1099 reporting is the process that reports vendor income to the IRS for the calendar year. 1099 transaction data is captured in the 1099 journal throughout the calendar year if the Posting Code is classified for 1099 reporting. A transaction is considered reportable if the following are true:
The vendor is eligible for 1099 reportable as specified on the Vendor/Customer (VCUST) table (1099 Reportable flag is inferred from 1099I), and,
The Object, Sub Object, Balance Sheet Account or Sub Balance Sheet Account is reportable, and,
The vendor’s VCUST record has an Organization Type, 1099 Classification, and TIN Type combination that has a 1099 Reporting Classification defined as Individual, Corporation, Trust, Sole Proprietor, or Partnership on the Valid Vendor Organization and 1099 Reporting Classification (VORGCL) table, and,
The Type of Income for the vendor is reportable for the VORGCL 1099 Reporting Classification on the 1099 Type of Income (TINC) table. If the VORGCL 1099 Reporting Classification is Corporation, the Type of Income is reportable if the Always 1099 Reportable flag is checked for the Object, Sub Object, Balance Sheet Account or Sub Balance Sheet Account.
Depending on your site's setup, taxpayer records can be added to the 1099 Reporting Information (1099I) table by submitting a Vendor/Customer Creation (VCC) transaction. Records can be added or modified on the 1099I table by submitting a Vendor/Customer Modification (VCM) transaction. In addition, for users with the appropriate security, records may be modified directly on the 1099I table.
This topic includes the following areas:
