1099 Setup Processing & Troubleshooting

- Pratima Gaikwad,
Enterprise Payables

6/1/2013

Agenda
Understanding 1099 Withholding PS Payables support for 1099 Withholding Withholding Setup. Q&A 1099 Withholding Transactions. Q&A 1099 Processes. Q&A 1099 Changes and Fixes for 2007 Useful hints and solutions. Q&A Flow Charts

Understanding 1099 Withholding

Understanding 1099 Withholding
Only applicable to United States Each year AP department report tax liabilities for vendors to IRS 1099 Forms and electronic files created at end of each calendar year 1099 Forms (CopyB) are mailed to vendors Electronic file(s) transmitted to IRS Note: Refer to IRS Publication 1220 as the definitive resource for
1099 rules and regulations @ www.irs.gov

What Enterprise Payables Support ?

What Enterprise Payables Support ?
Enables customers to provide IRS with 1099 Withholding
Electronic tax file(s) for IRS

Maintains Vendor Withholding information like TINs Supported 1099 Forms

1099-MISC 1099-I (Interest Income) 1099-G (Government Payments)

1099 Withholding Setup

1099 Withholding Setup
Withholding Rules Withholding Types and Classes Withholding Jurisdictions Withholding Business Unit and Vendor Categories Withholding Entity Setup Withholding Report Control Information Procurement Accounting Control Vendor 1099 Withholding Setup

Navigation

Alternative navigation

Withholding Rule
Withholding Rule - Determines Withheld Amounts and % based
on Transactions Amounts
Example of Backup Withholding Rule(Money withheld from vendor and paid to IRS)

Withholding Rule
Withholding Rule - Determines Withheld Amounts and % based
on Transactions Amounts
Example of Withholding Rule for 1099 Reporting only (No money withheld from vendors)

Withholding Types and Classes

Delivered 1099 Classes as 2007

Withholding Jurisdictions
Withhold Jurisdictions An additional level of classification
between the Withholding Type and Withholding Class

Business Unit and Vendor Categories

Business Unit and Vendor Categories

Withholding Entity
Before in Rel 9

Withholding Entity
Enhanced in Rel 9
Chatfield's Tab removed

More than one Vendor can be added

Withholding Option
Withholding Option:
Use Tax is not 1099 Applicable Freight : Checked - Added to Withholding Basis Amt Misc Chg : Checked - Added to Withholding Basis Amt Sales Tax : Checked - Added to Withholding Basis Amt Discount : Checked Deducted from Withholding Basis Amt

Example
Assuming Apply Net is checked
Gross Amount = $ 1200 ,Freight Amount = $200

When checked , Withholding basis Amount = $1200 else $1000.

Gross Amount = $1042.50, Sales Tax = $42.50

When checked , Withholding basis Amount = $1042.5 else $1000.

Gross Amount = $1000, Use Tax = $42.05 Always Withholding Basis Amount = $1000.

Example Contd.
Gross Amount = $1000, Discount = $20 When checked Withholding Basis Amount = $980 , else $1000 If voucher has following amounts Gross Amount 1242.50 Freight = $200 , Sales Tax = $42.5, Discount = $20 If all options checked , then Withholding Basis Amount =$1222.50 ($1000+$200+$42.5-$20) and if nothing is checked $1000 If Apply Net is not checked then for above example , the Withholding Basis Amount = $222.50

Entity Fields Vendor

Delivered setup For 1099 do no check any flags under column Withhold

Entity Fields Vendor

Delivered setup For 1099 do no check any flags under column Withhold

Entity Fields Vendor

Delivered setup For 1099 do no check any flags under column Withhold

Procurement Accounting Control

Procurement Control Prior to Rel 9

GL Business Unit

Procurement Accounting Control

Enhanced in Rel 9

Moved from Withholding Entity Page

Procurement Accounting Control

Enhanced in Rel 9

Vendor Setup
Vendor Setup

Vendor Setup
Vendor Setup

Vendor Setup
Vendor Setup

Vendor Setup
Vendor Setup

Vendor Setup
Vendor Location Setup

Vendor Setup
Vendor Setup

This flag should always be checked

Vendor Setup
Vendor Setup

This flag should always be checked

Question/Answers

Withholding Transactions
Basic Requirements
Vendor need to be Withholding Applicable. Voucher should be marked as Withholding applicable. Voucher need to be paid. Payment should be posted. Withholding Posting should be run.

Withholding Transaction
Voucher

Withholding Transaction
Voucher

Withholding Transactions
Post Withholding
Application Engine Process AP_WTHD Generates Withholding Transactions, one per payment. Combines Voucher(s) and Payment(s) information Selection Criteria
PS_PYMNT_VCHR_XREF.POST_STATUS_AP =P PS_PYMNT_VCHR_XREF.PYMNT_SELCT_STATUS =P PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =U PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=U For voided check: PS_PYMNT_VCHR_XREF.POST_STATUS_AP =P PS_PYMNT_VCHR_XREF.PYMNT_SELCT_STATUS =X PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =P PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=P

Output
PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =P PS_PYMNT_VCHR_WTHD.POST_STATUS_WTHD=P Row(s) in PS_WTHD_TRXN_TBL for each Payment For voided check: PS_PYMNT_VCHR_XREF.POST_STATUS_WTHD =X Credit Row(s) in PS_WTHD_TRXN_TBL for each Payment

1099 Reports based on PS_WTHD_TRXN_TBL

Withholding Transactions
Post Withholding Request

Withholding Transactions
Post Withholding Request

Question/Answers

Withholding Transactions
Post Withholding Request

Withholding/1099 Processing and Reporting

Withholding 1099 Processing

Withholding 1099 Processing
Year-end processing Generates Electronic Text File IRSTAX.001 1099 Report Forms
1099Misc ,1099G ,1099I

Processes involved
Withholding 1099 Report Post Withholding 1099 Report Print 1099 CopyB 1099M/1099I/1099G Withholding Sent File

Withholding 1099 Process Setup

Report Control Information Annual Calendar

Withholding Report Control Information

Report Control Information

Transmitter Information T-Record Payer Information A-Record Vendor and Business Unit Criteria Piggyback States/Numbers K-Record

Withholding Report Control Information

Transmitter and Payer Details

This information goes in as T-Record

This information goes in as A-Record

Transmitter and Payer Details

Transmitter Address and Telephone # is mandatory

Transmitter and Payer Details

Payer Address and Telephone # is mandatory

Vendor and Business Unit

Note:Last Business Unit will show up on the WTHD_1099_TBL But the total amount will be sum of all transactions for a Vendor.

Piggyback States

Note : This Is applicable only if customers participate in Combined Federal State Filing

Withholding Report Definition

Report Definition For 1099 US_REPORT

Annual Calendar

Annual Calendar
Annual Calendar Just one period starting Jan 1st ending Dec 31st

Withholding 1099 Process

Withholding 1099 Processing Steps Step 1 : Withholding 1099 Report Post
Application Engine 1099_RPT_PST

Step 2 : Withholding 1099 Report

Application Engine AP_APY1099

Step 3 : Withholding to Send Detail Optional

Crystal APY8056

Step 4 : Print 1099 Copy B

PS Job Print 1099 Copy B

Step 5 : Withholding Sent File Only after file has been

transmitted to IRS

Application Engine WTHD_SENT

Withholding 1099 Report Post

Step 1 : Populates PS_WTHD_1099_TBL

If any Adjustment done or Update Withholding process was run,this flag should be checked

Withholding 1099 Report

Step 2: Application Engine AP_APY1099
Populates the Withholding To Send and Copy B tables Generates IRS Text File IRSTAX.001

Withholding 1099 Report

Type of File/Return
O Original/Correction
Generates IRSTAX.001 file PS_WTHD_1099_COPYB, PS_WTHD_TO_SND_HDR,PS_WTHD_TO_SND_DTL PS_WTHD_TO_SND_PAY
Deletes data from Withholding Sent Tables

T Test
Generates IRSTAX.001 file
PS_WTHD_1099_COPYB

R - Replacement
Generates IRSTAX.001 file PS_WTHD_1099_COPYB PS_WTHD_TO_SND_HDR,PS_WTHD_TO_SND_DTL PS_WTHD_TO_SND_PAY

Withholding 1099 Report

Output Type File Output Format TXT Output Destination on Server

1099 To Send Detail

Step 3 : 1099 To Send Detail Optional Step

1099 Copy B
Step 4: Print 1099 Copy B
All,1099M,1099G,1099I

Name,TIN,Vendor

1099 Copy B
Step 4: Print 1099 Copy B- Printing one CopyB

1099 Copy B
PS Job can be run or individual processes can be run , Sort Process(AP_COPYB_RPT) followed by printing of CopyB

Withholding Sent File

Step 5: Application Engine - Only after file has
been transmitted to IRS and accepted Populates Withholding Sent Tables Delete data from Withholding To Send Tables

Withholding Sent File

If customer runs this process in error before the file was transmitted then have them do following :

1.Rerun Withholding 1099 Report with File option R Replacement

2.Again run Withholding 1099 Report with File option O - Original

Withholding 1099 Report Post

In Rel 9

Question/Answers

Withholding Adjustment
Withholding Adjustment
Review and adjust posted 1099 balances
Entry generated by Post Withhold is Original Original Entry changed by user is Override

Entry added by User/Update Withholding is Legacy

Withholding Adjustment

Withholding Adjustment

Liability and Paid Amount only when doing backup withholding. +ve or ve Amount to adjust the balance

Withholding Adjustment

Payment Date < Fiscal End Date for Manual Adjustment

Update Withholding
Withholding Vendor Update
Useful in updating all paid vouchers at a time

Update Voucher Line

Update Voucher Line
Updates only the selected vouchers

Update Voucher Line

Update Voucher Line
Only paid and payment posted vouchers show up

Update Withholding
Update Withholding
Make adjustments as specified in Vendor or Vchr Line Update

Process updates/deletes data from

PS_VOUCHER_LINE PS_VCHR_LINE_WTHD PS_PYMNT_VCHR_WTHD PS_WTHD_TRXN_TBL

Process does not recalculate the Sales Tax,Misc Charges or Freight enhancement open for future release

Update Withholding
Update Withholding Process Request

Reports and Reviews

Inquiries to manage 1099 Vendors and Vouchers

Reports and Review

Reports

Question/Answers

Useful Solutions
Useful Solution
Solution # 200951378 -What are the 1099 changes and fix for year 2004 ? Solution # 200732048 -AP : Pay cycle Withholding Exception - Master Resolution

Solution # 200734112-General description of types of Records and common specifications about IRSTAX file

Question/Answers

Overview of the 1099 processing

PS_PYMNT_VCHR_WTHD PS_WTHD_TRXN_TBL VOUCHER PAID AND PAY POSTED

PS_VOUCHER_LINE PS_VCHR_LINE_WTHD

VOUCHER ENTERED & SAVED

WITHHOLDING POSTING

PS_WTHD_1099_TBL 1099 REPORT POSTING

Vouchers by Vendor Vouchers by Class Vendor Balances by Class Withholding Report by Class

Manual Adjustments, Updates Or/And Corrections

No IS THE DATA POPULATED IS CORRECT?

Verify the data by running reports

Yes

Run WITHHOLD REPORT & PRINT COPY B

Updates and Manual Adjustments

Adjustments/ Updates

Populated
PS_WTHD_TRXN_TB L With a Process

UPDATE VOUCHER LINE

UPDATE VENDOR WITHHOLDING

Instance OF 0.

Manual Adjustments

AP_WTHD_UPDT Update Withholding

PS_PYMNT_VCHR_WTHD PS_WTHD_TRXN_TBL PS_VCHR_LINE_WTHD PS_VOUCHER_LINE

Back to Report Posting

Generating IRS E-File and Printing Copy Bs

Run WITHHOLD 1099 REPORT & PRINT COPY B PS_WTHD_TO_SND_HDR PS_WTHD_TO_SND_DTL PS_WTHD_TO_SND_PAY PS_WTHD_1099_COPYB

Withhold To Send Report Withholding_1099 Report

IRSTAX.001

Print 1099 Copy B

PS_WTHD_SENT_HDR PS_WTHD_ SENT_DTL PS_WTHD_ SENT_PAY

AP_COPYB_RPT App Eng Vendor Copy Bs APY1099- Crystal Prints Copy Bs

Withhold Sent Process

No Any Corrections?

Yes Adjustments & Corrections