R365 offers the ability to track any 1099 eligible transactions by Vendor.  This is set on the Vendor record and is unique to each Vendor.  Refer to the following articles for more information on forms 1099 & 1096


Overview 


The Vendor record has a 1099 Box field and invoices also have 1099 Box and 1099 Amount fields. The 1099 report is generated not from the 1099 Box on the vendor but the 1099 Box on each invoice. The report is calculated by summing the 1099 Amount on each invoice that was paid during the year for each vendor. The 1099 Box on the vendor is the default so when you create an invoice for a vendor that has a 1099 Box, the system will assign that same 1099 Box to the invoice and put the Amount of the invoice in the 1099 Amount field. Then, when the invoice is paid it, will show up in the 1099 report. 

If the user doesn’t want that particular invoice to be subject to 1099, wants it to go to a different 1099 Box, or wants only a portion of the amount to be 1099 then they can change the 1099 Box or 1099 Amount fields on that invoice. Set the 1099 Box on each vendor prior to creating invoices for that vendor (most common box is Box 7). The setting will not update invoices already created for the vendor prior to setting the 1099 Box, so the 1099 Amount and 1099 Box fields on those existing invoices would need to be updated manually. If there is a large number of invoices to update, please contact R365 Support.

1099 Historical Data


To add 1099 history (payments from your old system for the current year) to a vendor you need to create a beginning balance AP invoice and payment for the YTD 1099 amount from your old system.

  1. To create the beginning balance invoice & payments, click on ‘Administration’, select ‘Beginning Balance’, then select ‘AP Invoice’.  Add the invoice number like '1099BegBal2018', add the vendor, update the invoice date to a date prior to your go live date in R365, add the amount into the amount field, and then select the location to set the legal entity.  Once all is entered, Approve and Close.
  2. Next create the beginning balance payment, click on ‘Administration’, select ‘Beginning Balance’, then select ‘AP Payment’ and apply the payment to the invoice and approve and close.
  3. Repeat these steps for each vendor that you need to add 1099 YTD history for.  FYI you may need to reopen accounting periods to add the beginning balance transactions.


1099/1096 Reports and Forms


Electronic 1099s through tax1099.com


Click here for more information on the 1099tax.com export


Pre-2017 tax year - Print 1099


Click here for instructions on how to print physical copies of the 1099 report


Pre-2017 tax year - Print 1096


Click here for instructions on how to print physical copies of the 1096 report