You can update 1099 information for your suppliers. If you paid a supplier before you set up the supplier as a 1099 supplier, run the Update Income Tax Details Utility. Or, if you need to update only a few invoices, you can update the 1099 types in the Distributions window.
The following are suggestions for adjusting transactions for 1099 suppliers. If you need to add an amount to a 1099 supplier, for example if you paid the supplier through another system, you can adjust an invoice paid during the year in the Distributions window of the Invoice workbench. Add a distribution for the amount you want to add for 1099 purposes, including the Income Tax Type. Also add an offsetting distribution with a null Income Tax Type. If you did not pay the supplier during the year using Oracle Payables, then complete the following steps:
Prerequisites
The supplier is recorded as a 1099 supplier. See: Suppliers Subject to Income Tax Reporting Requirements.
Enable the Allow Pre-Date Payables option. See: Payment Payables options.
Enable the AP: Use Invoice Batch Controls profile option. See: Profile Options in Payables.
If you are already in the next year, open the last period in the prior year in both General Ledger and Payables, for example, December 2005. Controlling the Status of Payables Periods.
You do not use Automatic Offsets.
The Allow Adjustments to Paid Invoices Payables option is enabled.
Set up a unique pay group, such as "1099". See: Lookups, Oracle Payables Implementation Guide.
To record 1099 payments made outside of Payables and from a legacy system into Payables:
Create an invoice in Payables including the income tax type for the 1099 payment totals.
Create a corresponding credit or debit memo without the income tax type.
Pay both invoices with a zero amount.
| Invoice Date | Invoice Number | Invoice Amount | Income Tax Type |
|---|---|---|---|
| 04/24/03 | 125111 | 500.00 | MISC1 |
| 04/24/03 | 125111CM | -500.00 |
If you get a refund from a one-time 1099 supplier, you need to record the refund in Payables so that the 1099 reports are accurate. Enter a credit memo that you match to the original invoice, and then pay it with a refund. See: Refunds.