1099 Reporting

Vendor Setup

To configure a 1099 vendor, navigate to the Vendor Profile.  In the Vendor Properties section on the General Tab, check the 1099 Vendor box to enable 1099 reporting.  Then, use the 1099 Box field to select the appropriate 1099 form type. 

NOTE: Acumatica only provides 1099 tracking for the 1099-MISC and the 1099-NEC forms.

Daily Processing

Manage unreleased vendor bills

When entering a bill on the Bills and Adjustments or Cash Purchases screen for a 1099 vendor, the system automatically defaults the 1099 box on each detail line based on the 1099 box defined on the vendor profile.  Each detail line can use the same 1099 box or a different one, depending on the nature of the expense.  This field is editable and can be overridden to either a different 1099 box or left blank if needed. The expense amount is recorded to the designated 1099 box when the payment is released.

Adjustments for released vendor bills

If a line on an AP Bill does not have the correct 1099 box, it can be updated by navigating to the 1099 Box field on the detail line of the bill, even if the bill has a Closed status. The 1099 box can be changed from one box to another, added if it was previously blank, or removed if it was assigned in error.

Year-end Reporting

Navigate to the 1099 Reporting section within the Payables workspace to access all the menus needed for managing 1099 forms and reporting.

Review Year-end Totals

• Use the 1099 Vendor History to view the 1099 information by vendor.

• Use the 1099 Year Details and 1099 Year Summary reports to provide various aspects of 1099 information.

• Use the Open 1099 Payments to provide a list of all Prepayments that have not yet been applied.

Printing 1099s

Print 1099s using Acumatica reports designed to print on official 1099 forms.  These forms can be purchased from the IRS, post office or office supply stores.

• At the end of the 1099 reporting year, generate printed or electronic versions of 1099-MISC and 1099-NEC forms for each 1099 vendor by using the corresponding 1099-MISC and 1099-NEC forms. Be sure to send the appropriate copies to both the vendors and the IRS as required.

Close 1099 Year/Reopen 1099 Year

After filing the forms for a specific 1099 year, close that 1099 year using the Close 1099 Year screen to prevent duplicate filings. When a user records the first transactions for a 1099 vendor in the system, Acumatica automatically initializes the next reporting year for 1099 information. The system tracks 1099 payments for each calendar year independently of the payments from previous years, so closing a year is not mandatory. Multiple 1099 years can be open at the same time.

If a 1099 year has been closed by mistake, it can be reopened on the Close 1099 Year screen by selecting the appropriate year and using the actions menu.

Updating an incorrect 1099 amount for a Vendor

To update an incorrect dollar amount or make a summary adjustment for 1099 reporting, use a Cash Purchases transaction found in the Payables workspace. Select the Payment Method of ACH to allow for a zero-dollar transaction, which ensures the adjustment is recorded without affecting the general ledger balance.  It is recommended to enter “1099 Correction MM/DD/YY” in the Payment Reference field, as this note will display on the bank reconciliation. 

• To increase a 1099 amount
  • Enter one positive detail line.
  • Code the GL account to match the Cash Account in the Cash Purchase summary section.
  • Fill in the appropriate 1099 box.
• To decrease the 1099 amount 
  • Enter a negative detail line with the 1099 box filled in.
  • Enter a positive detail line with the same GL account, but leave the 1099 box blank.
  • This creates a net-zero entry while reducing the 1099 reportable amount.
  • Print, Process and Release the Case Purchase Transaction.