Use the IRS 1099 forms

Business Central will calculate 1099 forms only for vendors whose Purchase Invoice includes information about IRS 1099 Form No. and IRS 1099 Form Box No. on the document header and if the payment is posted and applied to this invoice.

Work with purchase documents

To have all IRS-related fields applied to the purchase document, this document must be in the date range, and IRS reporting periods and vendors must be configured. You need to create the purchase document and check if the IRS Reporting Period, IRS 1099 Form No. and IRS 1099 Form Box No. fields are populated in the Shipping and Payment FastTab. These fields will be prepopulated with default values from the Vendor Card page. You can change these values if this specific document needs to comply with a different 1099 form.

Important

Important:
If the Posting Date of the document is not within the reporting period date, the IRS fields will be disabled.

Note

Note:
If you do not see populated IRS fields and you expect values there, verify that the document is within the data range that you have configured for IRS reporting, and also check if you have created IRS reporting period for this year, and added this vendor to be 1099 eligible for this reporting year.

When you post this purchase document, you can see the following fields populated in relation to this posted document:

IRS 1099 Reporting Period
IRS 1099 Form No.
IRS 1099 Form Box No.
IRS 1099 Reporting Amount

If you made a mistake and didn’t use IRS 1099 Form No. and IRS 1099 Form Box No. on the document, or you used the wrong one, you can make corrections. To do this, on the Vendor Ledger Entries page, select the line you want to correct, and then choose the Edit List action. Change the IRS 1099 Form Box No. and IRS 1099 Reporting Amount fields.

All 1099 forms are calculated based on the information provided on the Vendor Ledger Entries page. But, make sure that the payment is posted and applied to the invoice during the same reporting period.

Precalculation

Amount adjustments

If you have some inaccurate information in the system or missed some document, you can manually adjust values before calculation. To do so, follow these steps:

Choose the icon, enter IRS Reporting Periods, and then choose the related link.
On the IRS Reporting Periods page, choose the Adjustments action to open the IRS 1099 Vendor Form Box Adjustments page.
Add the amount of adjustment to the IRS reporting amount, using Vendor No., Form No., Form Box No., and the Adjustment Amount.
Close the page.

Vendor corrections

If you didn’t configure the vendor properly, and forgot to add specific Form No. or Form Box No. but posted the documents or payments already, you can still make corrections. To do this, follow these steps:

Choose the icon, enter IRS 1099 Vendor Form Box Setup, and then choose the related link.
On the IRS 1099 Vendor Form Box Setup page, configure all necessary information and then choose the Propagate action for this vendor.
Choose how the new form box setup will make updates. You need to decide for which period you want to propagate this change and if you want to update existing opened purchase documents or vendor ledger entries, or both.
Close the page. Now you can continue with 1099 forms calculations.

Create 1099 form documents

To create new 1099 form documents for the reporting years, follow these steps:

Choose the icon, enter IRS Reporting Periods, and then choose the related link.
On the IRS Reporting Periods page, open the documents list, and then choose the Documents action.

-- or --

Choose the icon, enter IRS 1099 Form Documents, and then choose the related link.
On the IRS 1099 Form Documents page, choose the Create Forms action to create IRS 1099 forms based on the filters you want to use:
- Selecting the period is required. The other choices are optional.
- If you don't select a vendor, then form documents will be created for all vendors.
- If you don't select a certain form, then form documents will be created for all forms.
- If you don't select the option Replace, then only new form documents will be created. If you select the option Replace, then the existing form documents will be replaced.
In the created 1099 form’s documents list you can see the list of all created documents based on the combination of vendors and form numbers. From this list, you can open any of the created documents.

Once you open the document, you can find the following information on the document header:

Field Name	Description
Vendor No.	Specifies the vendor number.
Form No.	Specifies the form number used for calculation of this document.
ID	Specifies the non-editable ID of the document.
Status	Specifies the status of the document. Created document has Open status, but status can also be Released (when user releases it) and Submitted (after submitting to the IRS).
Receiving 1099 E-Form Consent	By selecting this field, you acknowledge that your vendor has provided signed consent to receive their 1099 form electronically. This field can't be changed at the form as this can be done only on the Vendor Card page. Only a 1099 form with this consent can be sent to a vendor via email.
Email	Specifies the email where the form will be sent if the vendor consented to electronically receive 1099 forms. If this vendor has configured the E-Mail For IRS field, this value will appear; if not, the standard E-Mail field from the Vendor Card page will be used.
Copy B Sent	Specifies whether this form copy has been sent. This field will be marked automatically and can't be edited.
Copy C Sent	Specifies whether this form copy has been sent. This field will be marked automatically and can't be edited.

The lines in documents have the following information:

Field Name	Description
Form Box No.	Specifies the number of the 1099 form box used in this line.
Calculated Amount	Specifies the amount per period and IRS code calculated by the Create Forms action on the list page. This amount is taken from the Vendor Ledger Entries page. If you enable the Collect Details For Line option, then you can see the connected entries. This value can't be changed.
Adjustment Amount	Specifies the calculated adjustment amount of the document line, the amount you specified for the Period, Vendor, and Form Box during your setup. This amount can't be changed manually.
Amount	Specifies the amount of the document line. The sum of calculated amount and adjustment amount. This value is used for reporting and the amount can be changed manually.
Minimum Reportable Amount	The threshold to decide whether the certain form box with the reporting amount must be reported.
Include in 1099	Specifies whether the document line should be included in the 1099. The line is included if the amount is more than or equal to the minimum reportable amount.

Close the page.

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