It's that time of year again! Time to generate and send out 1099s to your vendors. Luckily, Dynamics GP has this functionality built in. All you need to do when entering a new 1099 vendor is specify that they are a 1099 vendor in their vendor card. Then, at the end of the year, you can print 1099s for all vendors you have set up. All of the calculations are done for you.

That is great, unless something causes these calculations to be incorrect. This can happen if a vendor is not set up as a 1099 vendor initially, and the setup is not corrected until after several payments have been sent. Since they were not set up as a 1099 vendor when the payments were generated, those payments are not in the 1099 calculation.

The great thing about 1099s in Dynamics GP is that editing 1099s is a simple process. However, manually calculating the correct 1099 amount for vendors that were set up incorrectly can be a challenge. 

Setting up 1099 Vendors

The first thing you will want to do is verify that all your 1099 vendors are designated as such in their Vendor Card. The easiest way to see which Vendors are 1099 vendors is to use a SmartList. There is a default SmartList that works great for this. 

In SmartList, go to Purchasing > Vendors and select the "1099 Vendors*" list. This list will populate with any vendors that are marked as a 1099 vendor. From this list you can drill into the Vendor Card to make any changes. If you do not see a vendor in your list that should be a 1099 vendor, you will need to go into their Vendor Card and designate them as a 1099 vendor.

Verifying 1099 Numbers

Once all your vendors are designated with the 1099 Vendors distinction, you will need to verify that the amount that will print on the 1099 form is correct.  I've found that the fastest and easiest way to calculate the correct amount is to create a SmartList.

To make this SmartList, I navigated to Purchasing > Payables Transactions, and selected the * list.  In this list, I chose the following columns: Document Type, Vendor ID, Vendor Name, Document Date, Document Number, and Document Amount.

Once the columns are set, the next step is to set the search definitions.  The definitions needed are as follows:  Document Type is equal to Payment, Document Date is between 1/1/2014 and 12/31/2014 (the year for which I'm generating 1099s), and Voided is equal to "No."  I recommend increasing the Maximum Records to 10,000 to make sure all transactions are returned.

Then you can generate the SmartList, and export it to Excel.

Once it is in Excel, it can be sorted by Vendor ID.

In order to compare the Vendor IDs in this SmartList to the actual 1099 Vendor List, you will want to generate the 1099 Vendor SmartList and copy its data to the second tab of the 1099 Vendor Payments Excel file. 

Using the VLOOKUP function, you can specify in the list of transactions that belong to 1099 Vendors.  Any transactions that are not 1099 Vendor transactions can be deleted from the list.

After the list is edited to contain only 1099 Vendor transactions, it can be sorted by Vendor ID again.  Once it is sorted by Vendor, you can use the Subtotal function in Excel to calculate the total paid amount for each of your 1099 Vendors.

Once you have your totals, you can edit the 1099 amounts as necessary in Dynamics GP.

Editing for 1099 Details

To edit your 1099 details, go to Purchasing > Cards > 1099 Details.  Enter the Vendor ID, and select "Display by Year." Make sure that you are viewing the correct year.  By displaying by year, you can verify the total amount for this vendor by comparing it to your totals spreadsheet.  If the total is correct, continue to the next vendor.

When you come to a vendor that has an incorrect total, you will need to edit the numbers tocorrect it. In order to edit 1099 details, you need to display the totals by month, not by year. This is the only way you can edit the 1099 numbers. Once you have edited the 1099 details for the vendor, click Save.

Once you have all the vendors marked correctly as 1099, and their 1099 details are correct, you can print your 1099s.

Printing Your 1099s

To do this, go to Purchasing > Routines > Print 1099.  In the Print 1099 window, make sure you have the Payer's Federal ID number filled in.  This is your company's Federal ID number.  You will also want to make sure to change the From Type to "Single Feed."  Once you are ready, you can click the "Print Forms" button to print your 1099s.

Did You Know?

If you are on GP 2013 or higher, you now have the ability to print your 1096 from GP.  You can generate it in the Print 1099 window, by changing the print setting in the lower left corner from "1099 Form" to "1096 Form."  Then you will click "Print Forms," just as you did when you printed your 1099s.

That's it! You should now be able to print your 1099s and 1096s. If you are trying to close the year in Dynamics GP we recently conducted a webinar that goes through the all year-end closing procedures in Dynamics GP. Get the full video recording and transcript here!