Generating 1099 Forms

1099 Forms are used to report non-wage income for independent contractors or Vendors. The system tracks these payments based on specific flags set within the Purchasing and Accounting modules.

To generate a 1099, a Vendor must be identified as an independent contractor. This identification occurs at two levels: the Vendor Master Record (for defaults) and the Purchase Order (for specific transaction eligibility).

Configuration Requirements

Before generating forms, ensure the following system components are configured:

  • 1099 Form Types: Maintained in Purchasing > Maintenance > 1099 Form Types. These define the boxes (e.g., Box 1, Box 7) used on the final report.
  • Report Layouts: Configure the system reports tax1099 (1099-MISC) and tax1099nec (1099-NEC) in Print Outs > Maintenance > Report Layouts to align with physical IRS forms. Maintain both layouts if your process requires NEC as well as MISC.

Managing "1099 Required" Status

Vendor Level Configuration: To set a default status, navigate to Purchasing > Vendors > Order Defaults tab. Enable the 1099 Required flag and assign a default 1099 Form Type. You must also provide a Social Security Number or Taxpayer ID on the General tab.

Transaction Level Overrides: The system allows for granular control over 1099 reporting. While the Vendor Master provides the default, the Purchase Order (PO) settings take precedence:

  • PO Header: Located on the Misc 2 tab. Changes here update all lines on the specific order.
  • PO Line: Located on the General tab of the Purchase Order Line form. This is the "final authority" for 1099 eligibility.

Defaults come from the Vendor; each Purchase Order Line can still control eligibility independently when line-level values differ.

System Logic: The 1099 generation process evaluates the 1099 Required flag on each individual Purchase Order Line, not the Vendor record.

Printing 1099 Forms

  1. Navigate to Accounting > 1099 Forms.
  2. Set Start/End Date and Form type (All, 1099 MISC, or 1099 NEC), and any other filters you need. For a description of each pre-filter field, see 1099 Forms.
  3. Click Print to open the Copies To Print form and generate one summary form per Vendor based on paid Purchase Orders within the specified dates.

The system uses the tax1099 or tax1099nec report layout depending on the form types in the result; see Report Layouts under Configuration Requirements above.

Generating a 1099 Comparison Report

To audit 1099 accuracy, run an Order Detail report in Purchasing > Order Reporting with these criteria:

  • Status: Paid
  • Advanced Filter: Table: Purchase order lines | Field: Flag for line 1099 eligibility | Operator: = | Value: T

Subtotal the results by Vendor to match the totals against your printed 1099 forms.