There are a couple of tools within Dynamics GP that enable users to review and update the 1099 status of their vendors. The 1099 Modifier tool from within PSTL on the navigation pane is a good tool for updating vendor tax status on payments that have already been made.
Note, the 1099 Modifier tool does not change any status on open/unpaid vendor transactions. The Update 1099 Information utility is a function that allows users to update vendor status for open/unpaid transactions.
1099 Modifier Tool
1099 Modifier is a tool that allows the user to update 1099 amounts for vendors who are not set up as a 1099 vendor for the year or a portion of the year. This tool will only modify records that are already paid and should be 1099 records for the year selected. Any work/open records that haven’t been paid will not be updated (the vendor id should be updated through the 1099 utility after the paid items are updated).
To use the tool, the user first needs to update the vendor card to change the vendor from “not a 1099 vendor” and change to the appropriate tax status. From the home page select “Purchasing” from the navigation pane and then select “Vendor” from the Cards section of the area page.
Enter the Vendor ID or use the magnifying glass to look up the vendor. Then tab off the field and then click on the “Options” button in the lower right corner.
The Vendor Maintenance Options window will open. In the Tax Type field, the “Not a 1099 Vendor” option is selected. Change this to either Miscellaneous, Dividend, or Interest – make the appropriate selection per the vendor. When the tax type is updated the 1099 Box field will become active. Select the appropriate category. Once these changes are made click OK and then Save.
Pre-Change
Post-Change
Once the user has selected OK and Save the Vendor Maintenance Window can be closed.
Next the user will need to navigate to the PSTL Library on the navigation pane. Then select PSTL Main Setup from the area page.
The Professional Services Tools Library window will open. Select the “1099 Modifier” radial dial under Purchasing Tools and then select the “Next” button in the lower right corner.
The 1099 Modifier window will open. It is important to run this in “Print Report Only” mode the first time to ensure that all transactions are properly included. Here is where the user will enter the calendar year they are wanting to modify and then select “Process”.
A screen will open that says it will print a report only and not actually process anything. Select Continue.
A report will print that shows the Vendor ID, Voucher Number, and 1099 Applied Amount.
Once the user checks the list to be sure all intended vendors were included then go back to the 1099 Modifier and run as “Process and Print Report”.
Once the user selects “Process” a window will appear noting to make a backup of the company data. This is a good step to follow to ensure if something goes wrong you have the data to restore if needed. Once the backup is made select the continue button.
A window will appear noting that the 1099 Modification is complete, please verify your data. Select OK.
When the user closes the 1099 Modifier window the output screen will appear showing the changes made. Double check this output with the print only to ensure that all updates expected were completed.
Once all files are saved or printed as needed the process is complete.
1099 Update Information Utility
If a vendor id needs their 1099 information updated use the “Update 1099 Information” tool. Follow the path below to access this option. Select “Purchasing” from the navigation pane and then select “Update 1099 Information” from the Utilities section of the area page.
The Update 1099 Information window will open and the user will have a few different options and can follow the steps below as needed.
- In the update section at the top of the window select the “Vendor and 1099 Transaction” radial button (see blue rectangle).
- In the middle of the window is the section where the user can change the from/to for the vendor (see rec rectangle). This is where depending on what action is needed for the vendor the system will update the vendor tax status. For example, from “Not a 1099 vendor” and change the vendor to a “Miscellaneous” tax type and a “1 Rents” for the 1099 Box Number.
- In the Ranges section the user can select the Vendor ID and then use the magnifying glass on the right to look up and then select the vendor needing to be updated.
- Select “Insert” to make sure the vendor id is listed in the selection area.
- Click “Process” from the action bar.
See examples below.
Example 1
Vendor is currently setup as not a 1099 vendor and needs to be updated to a Misc. box #7.
Example 2
Vendor is currently a Misc. box #1 and needs to be updated to “not a 1099 vendor”.
Example 3
Vendor is currently a Misc. box #1 and needs to be updated to tax type of “Dividend” and a box number of “2c Section Gain”.
