There are several batch jobs or chain jobs used for tax reporting. Please refer to the Accounts Payable Run Sheets Guide to get a better understanding of each job. Below is the recommended sequence. Depending on your procedure, it may deviate from the below.
Tax Reporting Sites:
Run Offline 1099 Process in Report Mode (1099 Journal as Input = True) (Optional) – only produces reports selected on the 1099P page
Run Offline 1099 Process in Testing Mode (1099 Journal as Input = True) optional but highly recommended to do preliminary review
Records are loaded to 1099R and 1042R tables with Processing Indicator of ‘Testing’. Problems found during review?
Fix the source such as reference table or process transactions and rerun the process in Testing Mode (with 1099 Journal as Input = True) or
Fix the problems on the 1099R/1042R tables (directly on 1099R or use M1099 transaction). For each fixed record, a new record is inserted with a Processing Ind of ‘Updated’ record. Once all records are fixed on the tables, they are ready for the next Processing Mode.
Run Upload 1099ER Reported Income chain process, if needed, to load external 1099 taxpayer data to 1099ER table.
Run Offline 1099 Process in Forms mode (1099 Journal as Input = False if already executed in Testing mode) – Optional step to allow for additional review and make changes. Some sites typically skip this mode.
1099R, 1042R are updated with Processing Indicator = Forms. 1099ER is updated if batch parameter is set to read it.
Problems found during review of report or “R” tables (1099R, 1099ER, 1042R)?
Make corrections (Amount/TIN/Name/Address) directly on the “R” tables or process an M1099 transaction (M1099 is only available for 1099R records). Changed records will create a new version with Processing Indicator = Updated.
Insert new records to the “R” tables if necessary. Newly inserted records will have a Processing Indicator = New. M1099 transaction can also be used to add new records on 1099R.
Run Offline 1099 Process in Magnetic Media (MM) Mode (1099 Journal as Input = False if already executed in Testing or Forms mode). Required mode. This mode is also necessary to run the Offline 1099 Process in Corrected mode.
1099R, 1042R are updated with Processing Indicator = Magnetic Media. 1099ER is updated if batch parameter is set to read it.
Text files are produced for all records (say 1000 records – assumes no new records were added after Forms mode; if there were, the new records would also be included in this file).
Files produced in the Export Import folder are used by the Form Table Load Chain jobs to load records to the Form Reporting tables.
Run the Forms Table Load Chain job. The first run will load original records to the Form Reporting tables (F1099A, F1099C, F1099G, F1099I, F1099M, F1099R, F1099S, and F1042S). Records are inserted on these Form Reporting tables based on Consolidation option set on TAXOPT.
Run the Tax Form Printing job to print original forms in bulk. On demand, online printing can be made directly from the form reporting pages.
Run the IRS Transmittal File Generation job to generate files of original form data. This step can be skipped if your site is not transmitting forms data until a later date. The Transmission Type will indicate the type of record (original vs corrected) being transmitted to the IRS.
Make corrections or add new records as needed on ‘R’ tables (or using the M1099 transaction)
Changed records will have Processing Indicator of ‘Updated’.
Newly inserted records will have Processing Indicator of ‘New’.
Note: There are restrictions to process corrections if records were consolidated. Please refer to the “Corrections Processing” or “1099 Business Tasks” topic in this guide for more details.
Run Offline 1099 Process in Corrected Mode (1099 Journal as Input = False, Correction Processing = True)
1099R, 1042R, and 1099ER records are updated with Processing Indicator = Corrected. The Processing Indicator will be ‘Corrected’ on these tables even if you have not transmitted the taxpayer form data to the IRS. These records have been corrected since text files were generated. Tax Reporting sites should refer to Transmission Type field on the Form Reporting pages to see how the current record will be transmitted to the IRS. If your site has never transmitted form data to the IRS, it is possible to process multiple corrections before transmitting to the IRS for the first time. The Form Reporting table may show multiple version of the record based on changes initiated on the ‘R’ tables.
Text files are produced ONLY for ‘New’ or ‘Updated’ records after running in Magnetic Media mode (for example, if 10 records were corrected and 3 were inserted then the file would contain 13 records).
Run the Forms Table Load Chain job to load the corrected/new records
If the prior version of the records were not transmitted to the IRS then these records will be loaded with the Transmission Type of original.
If the prior version of the records were transmitted to the IRS then these records will be loaded with the Transmission Type of Corrected for 1099 forms (Transmission Type will be Amended for 1042-S form).
Run the Tax Form Printing job to print corrected/new records
If the prior version of the records were not printed then these records will be printed as original.
If the prior version of the records were printed then these records will be printed as corrected.
IRS Transmittal File Generation of corrected/new records.
If your site did not previously transmit to the IRS then this execution will produce files with original records for the IRS.
If your site previously transmitted to the IRS then files will be produced with corrected/amended records.
Separate jobs must be scheduled to pick up original records and corrected records. If there are corrected records and new records, two instances of the IRS Transmittal File Generation job would need to be scheduled.
Steps 9-13 can be repeated as necessary.
Non-Tax Reporting Site Sequence
Run Offline 1099 Process in Report Mode (1099 Journal as Input = True) (Optional) ) – only produces reports selected on the 1099P page
Run Offline 1099 Process in Testing Mode (1099 Journal as Input = True) optional but highly recommended
Records are loaded to 1099R and 1042R tables with Processing Indicator of ‘Testing’. Problems found during review?
Fix the source such as reference table or process transactions and rerun the process in Testing Mode (with 1099 Journal as Input = True) or
Fix the problems on the 1099R/1042R tables (directly on 1099R or use M1099 transaction). For each fixed record, a new record is inserted with a Processing Indicator of ‘Updated’ record. Once all records are fixed on the tables, run the next Processing Mode
Run Upload 1099ER Reported Income chain process if needed to load external 1099 taxpayer data to 1099ER table.
Run Offline 1099 Process in Forms mode (1099 Journal as Input = False) – Optional step to allow for additional review and make changes
Text files are produced for all records (say 1000 records) in the Report Output folder. These text files can be used for third party reporting tools. These files found in the Report Output folder cannot be used by Advantage Tax Reporting to load the Form Reporting tables.
Problems found during review of report or “R” tables (1099R, 1099ER, 1042R)?
Make corrections (Amount/TIN/Name/Address) directly on the “R” tables or with the M1099 transaction (M1099 is only available for 1099R records). Changed records will create a new version with Processing Indicator = Updated.
Insert new records to the “R” tables if necessary. Newly inserted records will have a Processing Indicator = New. M1099 transaction can also be used to add new records on 1099R.
Run Offline 1099 Process in Magnetic Media (MM) Mode (1099 Journal as Input = False). This mode is necessary to run the Offline 1099 Process in Corrected mode. Files produced in the Report Output folder can be used by third party reporting tools.
1099R, 1042R are updated with Processing Indicator = Magnetic Media. 1099ER is updated if batch parameter is set to read it.
Text files are produced for all records (say 1000 records – assumes no new records were added after Forms mode; if there were, the new records would also be included in this file).
Make corrections or add new records as needed on ‘R’ tables (or using the M1099 transaction)
Changed records will have Processing Indicator of ‘Updated’.
Newly inserted records will have Processing Indicator of ‘New’.
Run Offline 1099 Process in Corrected Mode (1099 Journal as Input = False, Correction Processing = True). Files produced will include corrected and new records.
Steps 6 & 7 can be repeated as necessary.