The Filing State prefills from the Payer's address. The Payer's address is based on your 1099 Amounts Paid to Report - Total Paid selection in the Form 1099 (USA) selection window:

• To Vendor uses the State entered in AP File, Company Settings, General in the address section.
• By Fiscal Entity uses the State entered in GL Setup, Prefix/Base, [fiscal entity prefix] in the address section. Your "[fiscal entity prefix]" is based on your GL account format and fiscal entity level selected.