1099_documentation.ppt

7/28/2019 1099_documentation.ppt

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6/1/2013 1

1099Setup

Processing

&Troubleshooting

- Pratima Gaikwad,

Enterprise Payables


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Agenda

Understanding 1099 Withholding PS Payables support for 1099 Withholding

Withholding Setup. Q&A

1099 Withholding Transactions. Q&A

1099 Processes. Q&A

1099 Changes and Fixes for 2007

Useful hints and solutions. Q&A

Flow Charts


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Understanding 1099 Withholding

Understanding 1099 Withholding Only applicable to United States

Each year AP department report tax liabilities forvendors to IRS

1099 Forms and electronic files created at end ofeach calendar year

1099 Forms (CopyB) are mailed to vendors

Electronic file(s) transmitted to IRS

Note:Refer to IRS Publication 1220 as the definitive resource for1099 rules and regulations @ www.irs.gov


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What Enterprise Payables Support ?

What Enterprise Payables Support ? Enables customers to provide IRS with 1099

Withholding Electronic tax file(s) for IRS

Maintains Vendor Withholding information likeTINs

Supported 1099 Forms

1099-MISC 1099-I (Interest Income)

1099-G (Government Payments)


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1099 Withholding Setup

1099 Withholding Setup Withholding Rules

Withholding Types and Classes

Withholding Jurisdictions

Withholding Business Unit and Vendor Categories Withholding Entity Setup

Withholding Report Control Information

Procurement Accounting Control

Vendor 1099 Withholding Setup


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Navigation


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Alternative navigation


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Withholding Rule

Withholding Rule - Determines Withheld Amounts and % based

on Transactions Amounts

Example of Backup Withholding Rule(Money withheld from vendor andpaid to IRS)


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Withholding Rule

Withholding Rule - Determines Withheld Amounts and % based

on Transactions Amounts

Example of Withholding Rule for 1099 Reporting only (No money withheld from vendors)


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Withholding Types and Classes

Delivered 1099 Classes as 2007


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Withholding Jurisdictions

Withhold JurisdictionsAn additional level of classification

between the Withholding Type and Withholding Class


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Business Unit and Vendor Categories

Business Unit and Vendor Categories


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Withholding Entity

Before in Rel 9


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Withholding Entity

Enhanced in Rel 9

Chatfield's Tab removed

More than one Vendor can be added


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Withholding Option

Withholding Option:

Use Tax is not 1099 Applicable Freight : Checked - Added to Withholding Basis Amt

Misc Chg : Checked - Added to Withholding Basis Amt

Sales Tax : Checked - Added to Withholding Basis Amt

Discount : Checked Deducted from Withholding Basis Amt


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Example

Assuming Apply Net is checked

Gross Amount = $ 1200 ,Freight Amount = $200When checked , Withholding basis Amount = $1200else $1000.

Gross Amount = $1042.50, Sales Tax = $42.50

When checked , Withholding basis Amount =$1042.5 else $1000.

Gross Amount = $1000, Use Tax = $42.05

Always Withholding Basis Amount = $1000.


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Example Contd.

Gross Amount = $1000, Discount = $20

When checked Withholding Basis Amount = $980 , else$1000

If voucher has following amounts

Gross Amount 1242.50

Freight = $200 , Sales Tax = $42.5, Discount = $20

If all options checked , then Withholding Basis Amount=$1222.50

($1000+$200+$42.5-$20) and if nothing is checked $1000

IfApply Net is not checked then for above example , theWithholding Basis Amount = $222.50


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Entity Fields Vendor

Delivered setup For 1099 do no check any flags under column

Withhold


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Withhold


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Withhold

C


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Procurement Control Prior to Rel 9

GL Business Unit

P A i C l


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Enhanced in Rel 9

Moved from

Withholding Entity Page

P t A ti C t l


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Enhanced in Rel 9

V d S t


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Vendor Setup

Vendor Setup

V d S t


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Vendor Setup

Vendor Setup

V d S t


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Vendor Setup

Vendor Setup

V d S t


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Vendor Setup

Vendor Setup

V d S t


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Vendor Setup

Vendor Location Setup

V d S t


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Vendor Setup

Vendor Setup

This flag should always be checked

V d S t


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Vendor Setup

Vendor Setup

This flag should always be checked

Q ti /A


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Question/Answers

Withholding Transactions


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Basic Requirements

Vendor need to be Withholding Applicable.

Voucher should be marked as Withholdingapplicable.

Voucher need to be paid.

Payment should be posted.

Withholding Posting should be run.

Withholding Transaction


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Voucher



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Voucher



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Post Withholding Application Engine ProcessAP_WTHD

Generates Withholding Transactions, one per payment.

Combines Voucher(s) and Payment(s) information

Selection Criteria

PS_PYMNT_VCHR_XREF.POST_STATUS_AP =P

PS_PYMNT_VCHR_XREF.PYMNT_SELCT_STATUS =P

PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =U

PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=UFor voided check:

PS_PYMNT_VCHR_XREF.POST_STATUS_AP =P

PS_PYMNT_VCHR_XREF.PYMNT_SELCT_STATUS =X

PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =P

PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=P

Output

PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =P

PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=P

Row(s) in PS_WTHD_TRXN_TBL for each Payment

For voided check:

PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =X

Credit Row(s) in PS_WTHD_TRXN_TBL for each Payment

1099 Reports based on PS_WTHD_TRXN_TBL



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Post Withholding Request



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Question/Answers


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Question/Answers



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Withholding/1099 Processing and Reporting


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Withholding/1099 Processing and Reporting

Withholding 1099 Processing


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Year-end processing Generates Electronic Text File IRSTAX.001

1099 Report Forms 1099Misc ,1099G ,1099I

Processes involved Withholding 1099 Report Post

Withholding 1099 Report

Print 1099 CopyB 1099M/1099I/1099G

Withholding Sent File

Withholding 1099 Process Setup Report Control Information

Annual Calendar



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Report Control Information

Transmitter Information T-Record

Payer Information A-Record

Vendor and Business Unit Criteria

Piggyback States/NumbersK-Record



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Transmitter and Payer Details


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This information goes inas T-Record

This information goes inas A-Record



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Transmitter Address and Telephone # is mandatory



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Payer Address and Telephone # is mandatory

Vendor and Business Unit


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Vendor and Business Unit

Note:Last Business Unit will show up on the WTHD_1099_TBL

But the total amount will be sum of all transactions for a Vendor.

Piggyback States


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Piggyback States

Note : This Is applicable only if customers participate in

Combined Federal State Filing

Withholding Report Definition


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Withholding Report Definition

Report Definition For 1099 US_REPORT

Annual Calendar


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Annual Calendar

Annual Calendar


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Annual Calendar

Annual Calendar Just one period starting Jan 1st ending Dec31st

Withholding 1099 Process


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Withholding 1099 Process

Withholding 1099 Processing Steps

Step 1 : Withholding 1099 Report Post Application Engine 1099_RPT_PST

Step 2 : Withholding 1099 Report Application Engine AP_APY1099

Step 3 : Withholding to Send Detail Optional Crystal APY8056

Step 4 : Print 1099 Copy B PS Job Print 1099 Copy B

Step 5 : Withholding Sent File Only after f i le has beentransmit ted to IRS

Application Engine WTHD_SENT

Withholding 1099 Report Post


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Step 1 : Populates PS_WTHD_1099_TBL

If any Adjustment done or

Update Withholding process was run,this flag

should be checked



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Step 2: Application Engine AP_APY1099

Populates the Withholding To Send andCopy B tables

Generates IRS Text File IRSTAX.001



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Type of File/Return

OOriginal/Correction Generates IRSTAX.001 file

PS_WTHD_1099_COPYB,

PS_WTHD_TO_SND_HDR,PS_WTHD_TO_SND_DTL

PS_WTHD_TO_SND_PAY

TTest Generates IRSTAX.001 file PS_WTHD_1099_COPYB

R - Replacement

Generates IRSTAX.001 file PS_WTHD_1099_COPYB

PS_WTHD_TO_SND_HDR,PS_WTHD_TO_SND_DTL

PS_WTHD_TO_SND_PAY

Deletes data from Withholding Sent Tables



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Output Type File

Output Format TXTOutput Destination on Server

1099 To Send Detail


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1099 To Send Detail

Step 3 : 1099 To Send Detail Optional

Step

1099 Copy B


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1099 Copy B

Step 4: Print 1099 Copy B

All,1099M,1099G,1099I

Name,TIN,Vendor

1099 Copy B


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1099 Copy B

Step 4: Print 1099 Copy B- Printing one CopyB

1099 Copy B


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py

PS Job can be run or individual processes can be run ,

Sort Process(AP_COPYB_RPT) followed by printingof CopyB



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g

Step 5:Application Engine - Only after fi le hasbeen tr ansm itted to IRS and accepted

Populates Withholding Sent Tables

Delete data from Withholding To Send Tables



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g

If customer runs this process in error before

the file was transmitted then have them dofollowing :

1.Rerun Withholding 1099 Report with Fileoption R Replacement

2.Again run Withholding 1099 Report with Fileoption O - Original



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g p

In Rel 9


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Question/Answers

Withholding Adjustment


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g j


Review and adjust posted 1099 balances

Entry generated by Post Withhold is Original

Original Entry changed by user isOverr ide

Entry added by User/Update Withholding isLegacy



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g j


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+ve orve Amount to adjust the balance

Liability and Paid Amount only when doing

backup withholding.


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Payment Date < Fiscal End Date

for Manual Adjustment


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Update Withholding

Withholding Vendor Update Useful in updating all paid vouchers at a time


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Update Voucher Line

Update Voucher Line

Updates only the selected vouchers


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Update Voucher Line

Update Voucher Line Only paid and payment posted vouchers

show up


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Update Withholding

Update Withholding Make adjustments as specified in Vendor or VchrLine Update

Process updates/deletes data from PS_VOUCHER_LINE

PS_VCHR_LINE_WTHD

PS_PYMNT_VCHR_WTHD

PS_WTHD_TRXN_TBL

Process does not recalculate the SalesTax,Misc Charges or Freightenhancement open for futu re release


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Update Withholding

Update Withholding Process Request


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Reports and Reviews

Inquiries to manage 1099 Vendors andVouchers


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Reports and Review

Reports


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Question/Answers


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Useful Solutions

Useful Solution Solution # 200951378 -What are the 1099

changes and fix for year 2004 ?

Solution # 200732048 -AP : Pay cycleWithholding Exception - Master Resolution

Solution # 200734112-General description oftypes of Records and common specificationsabout IRSTAX file


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Question/Answers

Overview of the 1099 processing


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VOUCHER ENTERED

& SAVED

VOUCHER PAIDAND

PAY POSTED

PS_VOUCHER_LINE

PS_VCHR_LINE_WTHDPS_PYMNT_VCHR_WTHD

WITHHOLDING

POSTING

PS_WTHD_TRXN_TBL

1099REPORT

POSTING

PS_WTHD_1099_TBL

Verify the data

by running reports

Vouchers by Vendor

Vouchers by Class

Vendor Balances by Class

Withholding Report by Class

IS THE

DATA POPULATED

IS CORRECT?

Run WITHHOLD REPORT

& PRINT COPY B

Manual Adjustments,

Updates

Or/And

Corrections

Yes

No

Updates and Manual Adjustments


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UPDATE

VOUCHER

LINE

AP_WTHD_UPDT

Update Withholding

UPDATE

VENDOR

WITHHOLDING

Manual Adjustments

PopulatedPS_WTHD_TRXN_TB

L With a Process

Instance OF 0.

Back to

Report Posting

Adjustments/

Updates

PS_PYMNT_VCHR_WTHD

PS_WTHD_TRXN_TBL

PS_VCHR_LINE_WTHD

PS_VOUCHER_LINE

Generating IRS E-File and Printing Copy Bs


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Run WITHHOLD 1099 REPORT

& PRINT COPY B

Withholding_1099 Report

Print 1099 Copy B

Withhold To

Send Report

APY1099- Crystal

Prints Copy Bs

AP_COPYB_RPT

App Eng

Vendor Copy BsWithhold Sent Process

Any Corrections?

Adjustments

&

Corrections

NoYes

IRSTAX.001

PS_WTHD_TO_SND_HDR

PS_WTHD_TO_SND_DTL

PS_WTHD_TO_SND_PAYPS_WTHD_1099_COPYB

PS_WTHD_SENT_HDR

PS_WTHD_ SENT_DTL

PS_WTHD_ SENT_PAY

Date post:	03-Apr-2018
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