1099 Setup and Management

R365 offers the ability to track 1099-MISC, 1099-NEC, and 1099-INT transactions by Vendor and organize 1099 processing by Legal Entity or Common Payer. The advanced setup and functionality of 1099 information in R365 allows more accurate tracking of Vendor information for IRS reporting. 

If a 1099 Vendor needs its 1099 Type or other details updated, click here to follow the process of Updating 1099 Vendor Types.

1099 Setup

Ensure that the correct 1099 information is entered on the necessary Vendor and Legal Entity records. 

Vendor Record

All Vendors subject to 1099 reporting will need to have tax information entered and saved on the '1099' tab of their Vendor records. This information will then appear on AP Invoices and Credit Memos when this Vendor is selected.

Legal Entity Record

All Legal Entities can be processed for 1099s, but if your Organization wants to aggregate multiple Legal Entities into a single reporting Legal Entity, this can be done by selecting a Common Payer. 

To setup a Common Payer, select the desired Legal Entity to serve as the Common Payer, or the single reporting Legal Entity, by opening its corresponding record, clicking the 'This Legal Entity is a Common Payer' checkbox, and saving the record.

Then, open all other Legal Entity records that will be processed through the Common Payer, select the Common Payer's name in the 'Report 1099s Through' drop-down selector, and then save the record. Repeat for all necessary Legal Entities.

Updating Individual Transactions

For Vendors that have more than one form set as 'Active' on their Vendor record, their '1099 Form' field can be easily updated on the transaction record of unapproved transactions.

On the transaction, select the desired Vendor. This will auto-populate the '1099 Form' and '1099 Box' fields to the default form and box selected on the Vendor record. Clicking the drop-down selector on the '1099 Form' field will display all available 1099 Forms available for that Vendor. Select the desired form and then update the '1099 Box' field if needed. 

This box will only be editable if the 'Allow Box Override' checkbox next to the corresponding 1099 Form is checked on the Vendor record. 

Updating Multiple Transactions

Multiple transactions can have their 1099 information updated in bulk from both the AP Transactions and Bank Transactions lists. To update both approved and unapproved AP Invoices and/or Credit Memos, Users will need one of the following Permission:

• Accounts Payable → 1099s → Edit Trx 1099 Info from Grid

To filter for 1099 transactions, open the desired list from the left pane of the Accounting module and then select the '1099 Transactions' Saved View from the view selector in the top, left corner above the grid. 

In the list, select the desired Approved and/or Unapproved transactions and then click the 'Edit Selected' drop-down menu above the grid. From the menu, click 'Update 1099' to open the 'Update Transaction(s)' modal.

From this modal, the 1099 Form, 1099 Box, and/or the 1099 Amounts set on the transaction(s) can be updated. Once the necessary fields are updated, click 'Ok' to make the selected changes.

A confirmation modal will appear confirming the amount of transactions that were updated. If one or more of the selected transactions did not have the selected 1099 Form and/or 1099 Box marked as 'Active' on their corresponding Vendor record, then those transactions will not be updated. 

To be able to make the desired changes to these transactions, navigate back to that Vendor record and mark the necessary form and box as 'Active' on the '1099' tab. Ensure to save the record, and then either update the transaction(s) individually or in bulk from the AP Transactions or Bank Transactions list.

1099/1096 Reports and Forms

The 1099 Reports are generated not from the 1099 Box on the Vendor record but the 1099 Box and the Payment Apply Date on each AP transaction. This report is calculated by summing the 1099 Amount on each AP transaction that was processed during the year for each Vendor. When the Payment Apply Date for a transaction occurs, the transaction will then show up in the 1099 Report. 

To view both 1099 and 1096 Forms and Reports, view the links below:

• 1099 Export 

  • This export can be used to file electronically through tax1099.com

• 1099 Review 

• 1099-INT Printable Form

• 1099-MISC Printable Form

• 1099-NEC Printable Form

• 1096 Prep

• 1096 Printable Form