Accounts Payable 1099 Process in Dynamics SL

There is no need to wait until January to begin the 1099 review and verification process. There are many things that you can do right now to get a head start and beat the rush!

Take note of the new tax law and filing due date. Public law requires form 1099-MISC to be filed on or before January 31, 2017 when you are reporting nonemployee compensation payment in box7. This includes those to the IRS and to the Recipient. See the following for complete rules: https://www.irs.gov/pub/irs-pdf/i1099gi.pdf.

AP Setup (03.950.00) – 1099 Tab On the 1099 tab, verify the appropriate calendar year is displayed and open. Also, verify the 1099 Limit is equal to the current IRS minimum amount.
Vendor Maintenance (03.270.00) – 1099 Info tab The 1099 Vendor field must be Yes and the proper Default 1099 Box Number must be selected.  If no box is selected from the dropdown list, amounts will not accumulate for the 1099.

Verify the accuracy of the amounts showing in the 1099 Year Boxes. If corrections are needed, go to Initialize Mode and then Vendor Maintenance (03.270.00). Input the correct 1099 amount and save. You must have Initialize rights to do this.

Make sure the Tax ID Nbr (TIN) field is populated. If not, ‘Request TIN from Vendor’ will print on the 1099 Preview Report (03.730.00) in place of the TIN. You will need to get a completed W9 from the vendor. Generate the 1099 Preview Report (03.730.00) and Vendor Trial Balance Report (03.650.00) or Vendor History (03.671.00). Compare them before producing 1099s to ensure the accuracy of all 1099 information reported for the current calendar year. The 1099 Preview report will display all 1099 information, including Vendor Tax Identification number (TIN), 1099 box amounts, and total payments for Vendors marked as Yes in Vendor Maintenance (03.270.00).
1099 Forms (03.740.00) and Generate 1099 Magnetic Media (03.742.00) For those companies on a supported SL version, SL will provide an annual Year End update that incorporates any tax changes. For the 2016 tax year, there are currently no changes and thus no update file will be provided.

Blank 1099 forms will need to be purchased. It is a good idea to run a mask first to double check the alignment of the form in the printer. By selecting Print Mask on the 1099 Forms (03.740.00) report, it will print a form with XXXXX in each field so you can test the alignment. SL does not print a 1096 report. You will need to manually complete the form.

To generate the 1099 Magnetic Media file, open Generate 1099 Magnetic Media (03.742.00) and complete each informational tab. Select the output location for your file and begin processing.

1099 Calendar Year Control (03.530.00) When the 1099 process is complete, it may be necessary to use this screen to purge obsolete 1099 information or change the status of the current and next 1099 calendar years. Many companies wait until late in the year to do this for the prior year in case prior year changes are needed or statements need to be reprinted. 1099 amounts for Vendors are accumulated based on Check Date. If the calendar year is not set up as an open 1099 year, you will be unable to process Accounts Payable checks and a System Message 532: ‘Date must be in an open 1099 year, please re‑enter’ will display. If this occurs, you must either purge the oldest year or change the status of the year.   If the new calendar year is not shown as the Current or Next 1099 Year, Purge Oldest Year will purge the 1099 data of the Current 1099 year and increase the numbers in Current 1099 Year and Next 1099 Year by one. It is recommended that a database backup is made prior to Purge.  The other option is to change the status of the Current or Next 1099 Year.

Download our Year End Processing Resource Guide

  • Year End Closing Checklists
    • General Ledger
    • Accounts Payable
    • Accounts Receivable
    • Payroll
    • 1099
  • 1099 Processing
  • How to Recalculate 1099 Balances
  • How to Close the 1099 Year
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