1099 Report Processing – Microsoft Dynamics AX 2012 R3

In this blog post, we will walk you through some of the important steps related to 1099 report processing.

1099 Reporting

  • Businesses required to file with IRS and provide individual reports to recipients annually
  • End-of-year process for Accounts Payable department
    • Ensure vendors marked as 1099 vendors
    • Verify receipt of W-9s from 1099 vendors
    • Review vendor invoices and make adjustments
      • Verify 1099 amounts captured are accurate
      • 1099 amounts for services

1099 Setup

  • Legal entity form
    • Navigation path: Organization administration>Setup>Organization> Legal entities
    • Enter Federal Tax ID
  • 1099 reportable amounts
    • Navigation path: Accounts payable>Setup>Tax 1099>1099 fields
    • Update Minimum amount reportable per 1099 box
  • Vendor setup

1099 Vendor Setup

  • Vendor record
    • Report 1099 checkbox
      • Record paid vendor invoice amounts as 1099 reportable
    • W-9 received
    • Check for W-9
    • Federal tax ID
    • Tax ID type
      • Employee Identification number, Individual Taxpayer Identification, etc.
    • 1099 box
    • Name to use on the 1099
    • DBA

1099 amount during invoicing

  • Modify 1099 amount on vendor invoice line during invoice processing
    • AP Vendor invoice journal lines (non-PO invoice)
      • 1099 tab or Invoice tab
      • Entered as a negative amount

Dynamics AX 1099 vendor invoice

 

  • Modify 1099 amount on purchase order during invoice processing
    • Purchase order invoice line details
      • 1099 tab

Dynamics AX 1099 Purchase Order

 

Review 1099 amounts

  • Review vendor paid invoices
    • Review 1099 invoice amounts and make appropriate adjustments
    • Services not goods
    • Pass-through: Vendor previously reimbursed for expenses
  • Review and make adjustments by individual vendor
    • Vendor record>Vendor settlement for 1099s
    • Click Tax 1099 transactions to review individual paid invoice amounts and edit Settled 1099 amount or 1099 box
  • Review and make adjustments for all vendors
    • Navigation path: Accounts Payable>Periodic>Vendor settlement for 1099s
    • Enter date range in Criteria area
    • Enter vendor range in Criteria area
    • IRS reportable
    • Tax 1099 transactions for paid invoice detail
  • Verify Settled federal amount and 1099 box for each paid invoice

 

Update invoice transactions as 1099

  • Update paid invoices as 1099 reportable
    • Vendor record>Update 1099 on Vendor tab
    • Parameters:
      • From date / To date
      • Update all

 

Generate individual 1099 reports

  • Vendor settlements for 1099s
    • Navigation path: Accounts Payable>Periodic>Vendor settlements for 1099s
    • Enter date range in Criteria area
    • Enter vendor range in Criteria area
    • Click Print
  • Print parameters:
    • Type of Tax 1099 form
    • Reporting year
    • (Optional) State

 

1099 individual vendor report

Dynamics AX 1099 Individual Vendor Report

 

Create export file

  • Setup
    • 1099 transmitter form
      • Company contact info for filing electronically
    • 1099 software vendor form
      • Software vendor info and contact info for filing electronically
    • Generate file

 

1099 related reports

  • Tax 1099 summary report
    • 1099 reportable amounts and total grouped by vendor account
    • Navigation path: Accounts Payable>Reports>Tax 1099>Tax 1099 summary

Dynamics AX 1099 Summary Report

 

  • Tax 1099 detail report
    • 1099 reportable amounts including date, voucher and invoice columns, total and grouped by vendor account
    • Navigation path: Accounts Payable>Reports>Tax 1099>Tax 1099 detail

Dynamics AX 1099 Detail Report

 

  • Duplicate taxpayer identification report
    • Verify no taxpayers have duplicate identification numbers
    • Navigation path: Accounts Payable>Reports>Tax 1099>Tax 1099 duplicate taxpayer identification

Dynamics AX 1099 Duplicate Taxpayer Identification Report

 

Should you have any questions, please feel free to reach out to us.

To learn more about how Tridea Partners can help you get the most out of your Microsoft solution, visit www.trideapartners.com or contact us at info@trideapartners.com

Are you ready for 1099 reporting?

1099 REPORTING IS JUST AROUND THE CORNER!

Tridea recommends that you start testing your 1099 reports to allow plenty of time for report refinements.

We recommend that you:

  • Start reviewing your vendors for potential 1099 recipients
  • Begin identifying amounts to be reported as 1099
  • Print test reports to verify form alignment

Tridea is here for you!  Please contact us for training or questions at info@trideapartners.com .