1099 transaction data is recorded throughout the calendar year in the 1099 Reporting Journal (J1099). This journal serves as the primary input into the Offline 1099 Process. It contains information necessary for 1099 reporting, including the valid chart of accounts fields, the reference transaction information, dollar amount, and taxpayer information.
The Posting Code (PSCD) table identifies which Posting Codes will update the 1099 Reporting Journal. By selecting the Journal Type for 1099 Reporting flag, you indicate that this Posting Code will update the 1099 Reporting Journal. The baseline Advantage Financial table settings have this field checked for Cash (Posting Code A001) and Warrants Payable (Posting Code D007). So, all transactions that generate posting lines for Cash or Warrants Payable such as Cash Receipts, Automated Disbursements, and Journal Voucher transactions are updated to the 1099 Reporting Journal.
Note that updates to the 1099 Reporting Journal are driven entirely by Posting Code, not vendor, object, or balance sheet 1099 classification. So, if a non-reportable Object Code is reclassified mid-year as reportable, that does not impact the data collection process, because the 1099 Reporting Journal captures all reportable and non-reportable activity for that object. The 1099 classification for vendors, objects, and balance sheet accounts only comes into consideration after calendar year end, when the Offline 1099 Process is executed.
The Journal Engine Process references two fields on the Application Parameters table to allow clients to define the criteria for records to be added to the 1099 Journal. These parameters are Require Vendor on 1099 Journal Updates and Require TIN for Misc on 1099 Journal Updates with default values as <blank>. If the Require Vendor on 1099 Journal Updates parameter is blank then records that meet the existing posting criteria without a Vendor/Customer Code may be posted to the 1099 Journal. If the value is 'True', then records without a Vendor/Customer Code will not be posted to the 1099 Journal. If the Require TIN for Misc on 1099 Journal Updates parameter is blank, then entries for miscellaneous vendors that meet the existing posting criteria without a TIN may be posted to the 1099 Journal. If the Require TIN for Misc on 1099 Journal Updates parameter is 'True', then entries for miscellaneous vendors without a TIN will not be posted to the 1099 Journal. The Journal Posting Engine will evaluate both conditions to determine if the record can be added to the Journal. In order for the record to be added to the 1099 Journal both parameter conditions must be met.