| | 1099-NEC form in the Purchase Order module |
| Resolution |
This enhancement was released in the following Sage 100 versions(Spring, 2021):
- Sage 100 2021
- Sage 100 2020 Update 2
- Sage 100 2019 Update 5
If you had been updating Purchase Order Invoices with 1099 Misc Box 7 as the workaround prior to the above versions, after upgrading, run ONLY the AP_1099Misc7_Utl to change the default 1099 form, create records and move the data from 1099 Misc Box 7 to 1099 NEC Box 1 in Vendor Maintenance, Additional Tab, 1099 History. Open the ../MAS90/Utility/AP_1099Misc7_utl.docx or .pdf for instructions on running this utility. This utility can be found on kb 103480 linked in related resources below.
This feature was added as a result of a Sage City Ideas Enhancement Request 1099 NEC needs to be added to Purchase Order module
DocLink: 1099 NEC form new for year 2020 for Accounts Payable Nonemployee Compensation
[BCB:155:Chat 100 US:ECB] |
| Steps to duplicate | | Tested and confirmed on 6.10.3.0 and 6.20.0.0
In ABC Company:
1. Open AP, Setup, AP Options, Main tab
2. Make sure 1099 Reporting is checked and click Accept
3. Open AP, Main, Vendor Maintenance
4. Vendor No, 01-AIRWAY
5. Additional tab, Default Form change to Nonemployee Comp and Accept
6. Open PO, Main, Purchase Order Entry
7. Create a new Order Number
8. Vendor No, 01-AIRWAY
9. NOTE: 1099 Form says "None"
10. Click drop-down on 1099 Form and only Miscellaneous is available to select
This also happens in Receipt of Goods, Receipt of Invoice and Return of Goods.
Customer has vendors which require a purchase order to do business with them and these same vendors will be reported on the 1099-NEC form so this is necessary to have 1099-NEC added to the PO Module.
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From the IRS website (https://www.irs.gov/instructions/i1099msc) it states when to use the new 1099-NEC form:
Specific Instructions for Form 1099-NEC
File Form 1099-NEC, Nonemployee Compensation (NEC), for each person in the course of your business to whom you have paid the following during the year:
At least $600 in:
1. Services performed by someone who is not your employee (including parts and materials) (box 1);
2. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 1); or
3. Payments to an attorney (box 1). (See Payments to attorneys, later.)
You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.
Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment. |
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