Acumatica End of Year Actions
During the reporting year, you enter bills from 1099 vendors and pay them. When you enter a bill from a 1099 vendor, the number of the 1099 box associated with the specified expense account appears on the Document Details tab of the Bills and Adjustments (AP301000) form. If needed, you can select a different expense account that corresponds to another 1099 box. A bill may include compensation of different types. You don’t have to specify the 1099 box number for every detail line of a bill that you process from a 1099 vendor. You have to specify the box number in only the needed lines; you leave the 1099 Box column empty for the lines that you don’t want to include in Form 1099-MISC on the Bills and Adjustments (AP301000) form. When the payment for the bill is released, the bill amount will be posted to the appropriate expense accounts and recorded to the corresponding 1099 boxes.
Here are some ways you can track 1099 information in Acumatica ERP:
- Use the 1099 Vendor History (AP405000) form to view the 1099 information by vendor.
- Use Reports > Open 1099 Payments on the Close 1099 Year (AP507000) form to view the list of open (that is, not applied) payments to 1099 vendors with a date that falls within the year you specify in the 1099 Year box on this form.
- Use the 1099 Year Details (AP654500) and 1099 Year Summary (AP654000) reports to view various aspects of 1099 information.
At the end of the 1099 reporting year, you print or prepare electronic versions of 1099-MISC forms for each 1099 vendor. The 1099-NEC form is available on Acumatica version 2019 R2 builds (19.200) and later. There is a drop down selection on the form. The non-employee compensation has moved to form 1099-NECs and is required for 2020 reporting year in addition to 1099-MISC.
If your organization has multiple branches, with more than one branch being a legal entity, you print 1099-NEC forms for the vendors of each branch that is a legal entity. In the Branch ID box of the 1099-MISC Form report, you select the branch for which you want to print the 1099-MISC form. In the list of options for this box, the system displays only branches that are legal entities.
Once the forms have been filed for a particular 1099 year, you can close the 1099 year on the Close 1099 Year (AP507000) form to avoid duplicate filing of information. When a user enters the first transactions for a 1099 vendor defined in your system, the system initializes the next reporting year for 1099 information. The system tracks 1099 payments for each calendar year independently from 1099 payments of the previous year; thus, closing a year is not mandatory and you can have multiple open 1099 years.
Once closed, the 1099 year cannot be reopened. You cannot process (record, apply, or void) a payment to a 1099 vendor with a date within the closed 1099 year. But you can generate 1099-related reports, as well as the electronic 1099-MISC form, for the closed year.