1) Complete all voucher entry and check payments for the year.
2) Run a Smart List vendor report for 1099 vendors and check for any missing information such as address information, tax id, or 1099 type.
MS Dynamics GP prints Dividend, Interest, and Miscellaneous type 1099’s.
Once you select the tax type you must select the box for printing. If you have many different tax types and dividend form types that you will print you can segment your vendors as below for easier printing. If your needs are simple you can probably get by with the three basic types. You can print all your Miscellaneous type 1099s then load your 1099 Interest forms, then 1099 Dividend forms. Each form type would be printed separately.
If you are confused on the form type and box please seek advice from your accountant or tax advisor.
There are several ways to segment your vendors for easier 1099 printing. I like to use classes; however there are several ways you can do this in MS Dynamics GP.
For example, I might have a vendor class called Dividend, and a class called Misc. All vendors that receive dividend checks will be in the Dividend class, and all vendors that receive miscellaneous 1099 payments will be in the Misc class.
You could also use user the defined field one under Options to segment your vendors.
When you print 1099s at the end of the year you can select to print by a vendor range, a class range, or by user defined one.
3) You can verify reported 1099 payments amounts by printing a Smart List or printing the 1099s to blank paper. You should verify addresses, tax ids, box number, and payment amount.
4) If you need to modify the reported payment amount go to Cards – Purchasing – Summary. Select the vendor. Click on Period. Enter the correct calendar year for which you are making adjustments. In Month/Period enter the period you want to adjust. You should see a blue arrow by 1099 amount. If you don’t it means your vendor is not setup as a 1099 vendor. You would need to correct that situation in the vendor card and then continue.
Once you click on the blue arrow enter the 1099 corrected amount in the appropriate boxes. Amounts are accumulated back to the total 1099 amount. For example, if we enter $100 in rent and $100 in Other Income the total amount for the 1099 Miscellaneous for the period will be $200.
All amounts or adjustments you enter to the periods are cumulative. So at the end of this process if you click Yearly, enter the year, and click Calculate you will see the total 1099 accumulation for the year.
If you want to enter one total only in say period 12, make sure to enter zero for each previous period that has 1099 amounts or your yearly accumulation will be way off.
5) Once you have made all corrections you can print 1099s.
Go to Tools – Routines – Purchasing – Print 1099
Verify company Address, Federal ID number, type of 1099 you are printing, year, and select the proper form type such as Single Feed for Laser 1099s.
The laser 1099 prints two 1099’s per page. Typically you will print a 4 part 1099 so you will print four runs.
If all your vendors are 1099 Miscellaneous you can leave Vendor ID range on all and just click Print. You can also choose the sort order.
If however you have segmented your vendors by 1099 class or user defined one you need to click the drop down and select the class range from and to, for example Dividend from the example above. You would make sure you have the Dividend 1099 form loaded in the printer.
Send the output to the screen. Click Print, but don’t close the screen. This way you can print all four copies without repeating the entire process.
6) Once you have printed all of one type of 1099 you can then change to your next 1099 type and repeat the above instructions.