If this is your first time working on 1099 on D365FO, let me give you a quick tour on how it works and what you should do!
Let´s start at the beginning. This is a feature that can be enabled(disabled on demand by your company). If you don't have it, here is where you can activate it.
Main Menu / Workspaces / Feature management
How to know if it worked? well you can go to AP/Periodic and you should see a TAX 1099 folder.
Once you are there, we can begin by the basics:
A. 1099 fields: (Information) It will show you all the different types of 1099. It is not editable and Microsoft it self keep it up to date.
B. 1099 main account association: (It is key) It this forms you will tell the system where the 1099 transactions are stored for reporting purposes. Transactions whose accounts are not in this form will not be included in the calculation totals.
C. Vendor Settlement for 1099: (Useful) Here you can have a very first approach of the system calculations categorized by 1099 type (i.e. NEC, MISC, etc.) The system will also tell you if that category is reportable or not.
You can filter by date, vendor, 1099 type oy reportable option.
It is worth investing some time in this form. Let's think we are already on reporting season, and we are adjusting all the transactions. Here is what you can do!
Adjusting all your 1099 transactions
On the action pane, you can manage and adjust your transactions for reporting purposes.
Vendor 1099 Transactions: It queries directly from AP module transactions,
It will drill at a voucher, invoice, amount level. It also allows you to adjust the amount at your will.
Note: Make sure all transactions you will report have the Vendor state on them.
Manual 1099 Transactions: If by any chance it were not reported transactions, you can manually add them here, and the system will include it in the total calculation, but will keep them separately from the Module ones on the details.
Before we continue, let me show you another way of adjusting vendor 1099 transactions:
Accounts Payable/Vendors/All vendors, and on the action pane, you have the 1099 options.
On the Update 1099 option you can run as many times as you want the transaction recalculation in case you still are doing month adjustments.
On the Vendor settlement for 1099's you will see the detailed transaction level of the selected vendor.
Printing your 1099 reports
Well... Once you are done adjusting transactions, you can print the report as many times as you want, if you realize the report prints in the IRS formatting.
But, how do we report it?
Well. You can still request IRS-formatted paper and a printer for your printer. This is the old trusty way.
If by any chance you got a transmitter solution or a tax solution for this, you can do it through the:
Create Export file: This option creates the XML File for you (test or the filing one). In case of missing information on any vendor, it displays a list of errors to be corrected.
Once you complete it, the system creates the file either to be reported to the IRS or to be imported into your Tax solution!
D. Tax 1099 detail report: This is an SSRS report, where you can see all the transactions grouped by vendor, including voucher, invoice, and amount details. You can control all the amounts before generating the official format.
E. Tax 1099 duplicate taxpayer identification report - Combine federal/state filing codes:
These two reports belong to specific cases that we will discuss in another post, but basically are an exception that can be controlled before issues 1099 official formats.
My tips:
Transmitter setup used to be in the AP Setup folder, noy it is located under the Legal entities form.
You can recalculate and re run the process as much times as you live. Even if you missed to set up a vendor, you can do it and recalculate all year transactions.
Thresholds and legal setups are not editable: These are automatically provided by MS. If by any chance there is own automatic mis calculation you can manually enter an adjustment transaction to correct the final amount to be reported.
Typical issues are, vendor missing information like EIN, SSN, State on the address, missing invoices or transmitter missing information.
Thank you so much for reading it until the end. I hope this help you on your journey! If you liked, please give us a like!
