How do I set up a vendor to receive a form 1099 (NEC, MISC, INT, or DIV) in Accounts Payable?

For information about what prints on the 1099s, refer to What information prints on the 1099s in Accounts Payable?

For information about a report to help prepare for 1099s, refer to Is there a report that will show the vendors and 1099 amounts in Accounts Payable?

For other year-end information related to Accounts Payable, refer to Sage 300 Construction and Real Estate Year-End Information - Accounts Payable

CAUTION: Sage Customer Support cannot assist with issues related to third-party products or enhancements, hardware, report customizations, state or federal tax-related questions, or specific accounting questions. Refer to our Scope of Support document for details. For assistance, contact your Sage business partner, network administrator, or accountant. 

Notes:

• You must be on version 20.3 or newer to utilize the 1099-NEC form type. IMPORTANT: Be sure to complete any 1099 corrections for 2019 before upgrading.
  • Note: There are changes to the 1099-NEC form for reporting year 2021. Be sure to complete any 1099 corrections for 2020 before upgrading to the 2021 year-end version.
• If upgrading from version 20.2 or older version to 20.3 or newer, vendors with the form type 1099-MISC Non-Employee Compensation selected, will automatically be updated to the 1099-NEC Non-Employee Compensation type.
• For vendors where the amounts should be reported as Gross Proceeds Paid to an Attorney, as of version 20.3 and newer, the form type selected must be 1099-MISC Rents/Gross Proceeds along with the box marked for Gross Proceeds Paid to An Attorney. In versions 20.2 and older, the form type needed to be 1099-MISC Non-Employee Compensation.
  • Note: Refer to the IRS form instructions for the 1099-MISC and 1099-NEC and consult with your tax accountant as to whether you need to report amounts in the Gross Proceeds Paid To An Attorney box on the 1099-MISC form.

Setting up a vendor to receive a form 1099 (NEC, MISC, INT, or DIV):

1. In Accounts Payable, from the Setup menu, select Vendors.
2. Select the Vendor then press the ENTER key twice.
3. Select the 1099 Settings tab.
4. Mark the Vendor Receives a Form 1099 box.
5. NEW as of version 24.1: If you need to issue the 1099 to a different address than the address specified on the General tab:
   1. Mark the Alternate Address for 1099 check box.
   2. Click the Alt 1099 Addr button (bottom right corner next to the Help button).
   3. Enter the address information to be used for 1099s then click OK. Tip: You will need to TAB through the Postal Code field for the OK button to enable.
6. Enter the Recipient's Tax ID Number.
7. If the name associated with the Tax ID Number (TIN) is different from the vendor Name, enter the name associated with the TIN in the Recipient's Tax ID Name field.
   • Note:

     The vendor name will print as DBA (Doing Business As) on the 1099, formatted as follows:
     [Recipient's Tax ID Name]
     DBA [Name]
     
     For example, if the vendor Name is "ABC Electric" and the Recipient's Tax ID Name is "John Doe", it will print:
     
     John Doe
     DBA ABC Electric

8.  

   If the Tax ID number has not been provided by the vendor, determine if you need to select the Second TIN Notice box. For information about Second TIN Notice, refer to What is the Second TIN Notice checkbox in Accounts Payable? 
9. If the amount needs to be reported as Gross Proceeds Paid to An Attorney, mark this box. Make sure to also select the form type 1099-MISC Rents/Gross Proceeds (versions 20.3 and newer). Refer to How do I set up a vendor to report Gross Proceeds Paid To An Attorney on the 1099 in Accounts Payable? 
10. Select the appropriate Form Type:
    • 1099-NEC Non-Employee Compensation to report non-employee compensation amounts
    • 1099-MISC Rents/Gross Proceeds to report rent income or to report Gross Proceeds Paid to an Attorney
    • 1099-INT to report interest income
    • 1099-DIV to report dividends
11. If you will be using Aatrix's service to email the 1099 forms and the vendor elected to receive their 1099 electronically, mark the Electronic 1099 box and enter the vendor's email address in the field beneath the check box.
    • Note: Make sure you receive a completed Electronic 1099 Consent Form (per IRS requirements) from each vendor who wants to receive their 1099 electronically instead of receiving a paper copy. Refer to Electronic 1099 Consent Form.
12. Click Save.
13. Repeat these steps for any additional vendors.
14. Click Close when finished.

Where can I find Year-End Procedures Guides (YEPG)?
If the 1099 check box was not selected for a vendor, can I select it now to have them included when I process 1099s?
Sage 300 Construction and Real Estate: Download Portal