This post covers 1099 reporting enhancements specifically. If you're looking for overall information on the 1099 reporting process, check out our post and YouTube video on "1099 Processing in GP".
If you use Dynamics GP for payables, I hope that you're also utilizing the 1099 capabilities. This post will focus on the out of the box reports, their short-comings, & then some alternative approaches to reporting.
Before we get started, there are a few basic setups that need to be complete before your company is ready to start with 1099s.
1.) Ensure your company's main address & Federal ID Number are setup in the system under Admin>>Setup>>Company
2.) Ensure your vendors are setup correctly w/ a Tax ID number, 1099 Tax Type & 1099 Box Number. These options are all viewable under Purchasing>>Cards>>Vendors>>Options.
Once setup... Processing is easy.
Simply create your voucher for a 1099-enabled vendor, you'll notice the 1099 amount field is active & auto-populates w/ the document amount (you can adjust if needed) & then post the voucher just like you would any other payable transactions.
Setup & reporting is the easy part, now onto reporting....
Out of the box, you're provided with a few basic inquiries & reports.
Inquiries (Vendor by Vendor Reporting)
- Purchasing>>Inquiry>>1099 Details
- Purchasing>>Cards>>1099 Details
- Purchasing>>Transactions>>Edit 1099 Transaction Information
Reports (all vendors at once)
- SmartList>>Purchasing>>Payables Transactions (Include 1099 column)
"Print 1099" under Purchasing>>Routines. This is going to provide you with what the ultimate goal is, your printed 1099s.
Downfalls of Out of Box Reports
- Payables Transactions SmartList is based off of payables voucher dates and not payment date. Thus if during either ones of your calendar year-ends you posted invoices in one period and paid them in another... Goodluck.
- Vendors SmartList like some other GP SmartList reports is out-of-date or just frankly doesn't have all of the information that it should. For 1099 purposes, the 1099 Box field nor the '1099 Address' from the vendor setup is available.
More Powerful Reports
Using SmartList Builder (could also use SmartList Designer) & a little bit of SQL reporting knowledge, we can deploy improved reports. (For details on deploying SmartList Builder reports, take a look @ our earlier post or video "Building and Deploying Dynamics GP SmartList Builder Reports").
Report 1.) 1099 Summary
- This report simply matches what you see in the Purchasing>>Inquiry>>1099 Summary window except it can be used to view all vendors at once.
Report 2.) 1099 Detail
- This report as you can imagine is the detailed version of the above. The largest benefit between this report and the out of the box payables transactions report is that the year-end cut-off is clean and you're not chasing down reconciling items
Between the 2 reports above, you can easily reconcile and have confidence that your 1099 amounts are correct (again more detail on recommended year-end process in separate post)
Report 3.) Vendors with 1099 Information
- This report is pretty similar to the existing vendors report but provides you with a couple key bits of information that the original does not (1099 Address information, 1099 Box, etc.).
Reports Designed in SmartList Builder
Vendors w/ 1099 Information
Check-out our other mentioned posts on SmartList Builder, Overall 1099 Process & our YouTube channel for more information. If you have any questions or your own 1099 tips and tricks, let us know!
Note: All Screenshots from Dynamics GP 2018