1099s and AP New Vendor Setup?

Greetings,

According to IRS guidelines if an LLC is a sole proprietorship or taxed as an S-Corporation or C-Corporation you do not need to send a 1099. Unincorporated contractors or partnerships/LLPs do get 1099s.

Is there a way to record the vendor's corporate tax structure when setting them up so that only vendors who are required to receive a 1099 print.

Thanks

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Comments

jason-vance

You can set the income code on AP10-Defaults tab-Income Code to MISC. This will flag those vendor to show on the reports you run for verifying 1099 information (AP145 & AP245).

Legacy Contributor

If you don't enter an income code on the AP10 defaults tab when setting up the vendor, no 1099 will print. Note that once invoices are created, the income code from AP10 is passed to the invoice. If you then remove the income code in AP10, that will NOT remove the income code from invoices already created. Use AP45 to update individual invoices. AP45 is also used for some vendors where certain invoices should be included in 1099 income, and other invoices for that same vendor should not be included.

Legacy Contributor

If you don't enter an income code on the AP10 defaults tab when setting up the vendor, no 1099 will print. Note that once invoices are created, the income code from AP10 is passed to the invoice. If you then remove the income code in AP10, that will NOT remove the income code from invoices already created. Use AP45 to update individual invoices. AP45 is also used for some vendors where certain invoices should be included in 1099 income, and other invoices for that same vendor should not be included.

So if we remove the income code from an existing vendor but do not change the previous invoices a 1099 will still print?

Legacy Contributor

You can set the income code on AP10-Defaults tab-Income Code to MISC. This will flag those vendor to show on the reports you run for verifying 1099 information (AP145 & AP245).

If we set it to MISC will a 1099 print?

Wichtige Lösungen in der Wissensdatenbank Dezember 2011.pdf

Legacy Contributor

Yes - correct. AP45 shows the detail of what invoices have been flagged for 1099 reporting.

Legacy Contributor

You need to enter an appropriate code from AP02.4. If you don't have codes established there, they will need to be established.

Legacy Contributor

This is what our AP02.4 codes look like.

jason-vance

If you run an AP245 report it will show you which vendors are currently flagged to get a 1099. If you have additional vendors that need to receive a 1099 on all invoices you will want to update AP10 to MISC but you will also have to go to AP45 and change the income code to MISC for every invoice that should be included in the 1099 total. Likewise-if there are some invoices that should be excluded you can remove them on AP45 as well by removing the MISC code.

You may want to watch the 2017 Lawson Year end webex. They also have a KB article that you can subscribe to.

Infor Extreme-Search-browse documentation-Lawson Applications-Year End Processing-2017 Accounts payable-APYE2017-Subscribe

Hope this helps!!

Legacy Contributor

Thank you both!

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