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 a journal throughout the calendar year. A transaction is considered reportable if the following are true:
The vendor is eligible for 1099 withholding as specified on the Vendor/Customer (VCUST) table, 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 also 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, records can be added to the 1099 Reporting Information table by submitting a Vendor/Customer Creation (VCC) document. Records can be added or modified on this table by submitting a Vendor/Customer Modification (VCM) document. In addition, for users with the appropriate security, records may be modified directly on the 1099 Reporting Information table. For more information on the VCC document or the VCM document, refer to the associated page level help in Advantage. Page level help is accessed by placing your cursor on the Advantage page, clicking on the right mouse button, and then choosing the Page Help option from the pop-up menu.
This section of the user guide includes the following areas: