Tips in processing 1099’s when using Microsoft Dynamics GP

January 17, 2015

Do you have Professional Service Tools loaded anywhere? It doesn’t have to be on all computers, just the one where you’re going to run it. If you do, this is a great tool so that you don’t have to adjust vendors manually. If you don’t, let me know and I can send you the free version.

 

Basically this will look at all vendors coded as a 1099 vendor as of this point in time (even if just set), then read through all invoices paid in the year and plug the 1099 amounts. Some situations where this won’t help:

  • If on some invoices the 1099 amount should not equal the entire Purchases amount. Ex: the invoice is for services which are 1099able but also includes reimbursed expenses which are not. This tool will always plug the total Purchases amount in the 1099 field.

  • If a vendor was flagged as a 1099 vendor by mistake so amounts were being accumulated that should not have been. Turning the flag off will not get rid of those amounts and a 1099 would still be generated. You must manually zero out amounts in this case.

 

Some users are told that they should run this process in a test company first. I don’t feel this is necessary since there is a ‘Report Only’ option and that should always be run first and validated before doing the actual process.

 

Oh, one other gotcha I’ve found over the years…if you have a 1099 vendor who was paid exactly $600 (probably unusual but happens) a 1099 won’t be generated. By default in the setups the limit is entered as $600, that is a mistake and should really be $599 in order to get a $600 1099 to print.

 

Do you have Professional Service Tools loaded anywhere? It doesn’t have to be on all computers, just the one where you’re going to run it. If you do, this is a great tool so that you don’t have to adjust vendors manually. If you don’t, let me know and I can send you the free version.

 

Basically this will look at all vendors coded as a 1099 vendor as of this point in time (even if just set), then read through all invoices paid in the year and plug the 1099 amounts. Some situations where this won’t help:

  • If on some invoices the 1099 amount should not equal the entire Purchases amount. Ex: the invoice is for services which are 1099able but also includes reimbursed expenses which are not. This tool will always plug the total Purchases amount in the 1099 field.

  • If a vendor was flagged as a 1099 vendor by mistake so amounts were being accumulated that should not have been. Turning the flag off will not get rid of those amounts and a 1099 would still be generated. You must manually zero out amounts in this case.

 

I see the support rep suggested running in a test company first. I don’t feel this is necessary since there is a ‘Report Only’ option and that should always be run first and validated before doing the actual process.

 

Oh, one other gotcha I’ve found over the years…if you have a 1099 vendor who was paid exactly $600 (probably unusual but happens) a 1099 won’t be generated. By default in the setups the limit is entered as $600, that is a mistake and should really be $599 in order to get a $600 1099 to print.

 

We have a document that details how to use the Professional Service Tool for this purpose. 

 

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