Authored by Mike McDowell, Mekorma Authored by Mike McDowell, Mekorma & Zubin Gidwani, Dynamic Budgets Regional Chapters

Agenda  Understanding how GP records 1099 amounts  Researching and validating 1099 data  How to edit 1099 data  TIN Matching  3 approaches to managing 1099s Printing / Filing  Q & A

Regional Chapters Understanding how GP records 1099 amounts 1099 amounts are stored in the vendor summary records AP determines transaction by transaction where amounts record Prior to GP 2010 need PSTL to update 1099 amounts GP Update 1099 Information & amounts all or nothing GP 2013 – edit 1099 transactions by transaction

Regional Chapters Vendor Cards From the Vendor Card you go into Options to view the Tax Type and 1099 Box

Regional Chapters Routing 1099 amounts at Transaction Entry

Regional Chapters 1099 Details As the transactions post the system updates the YTD 1099 Summary amount on the vendor record To view & Edit 1099 detail information: Cards -> Purchasing -> 1099 Detail To view 1099 detail: Inquiry -> Purchasing -> Vendor 1099 Details

Regional Chapters Why would a 1099 Summary be wrong?  The Vendor Summary buckets update with appended amounts from each transaction as the transaction posts.  You can change a vendor’s “1099 Type” at will, as many times as you wish.  Prior posted transactions do not change automatically, new posted transactions will accumulate in the new bucket…

Regional Chapters Researching and validating 1099 data  Recipients (start with SmartLists) – Addresses – Formal Name per IRS records – TaxID  Box Types  1099 vs. non-1099 qualified payments to 1099-vendors

Regional Chapters If you don’t “Trust” your 1099 summaries, you can review transaction summaries with the following SQL Query Disclaimer: SQL Scripts can damage or destroy data. Use these scripts with caution on a test system first. Backup your database before using. Use the following script is at your own risk. We take no responsibility for any harm or data loss caused by these scripts nor do we warranty the validity of the results. The script is provided to assist your 1099 research activities, and must be independently validated against core system reports should you attempt to use these for final data extraction. Compare Transaction Summaries to 1099 Amounts

Regional Chapters SELECT TOP (100) PERCENT CAST(DB_NAME() AS char(5)) AS CompanyDB, dbo.PM30200.VENDORID, SUM(dbo.PM30200.DOCAMNT) AS SumOfDOCAMNT, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1,dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, SUM(dbo.CM20200.TRXAMNT) AS SumofTrxAmt, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 FROM dbo.CM20200 INNER JOIN dbo.PM30200 ON dbo.CM20200.CMTrxNum = dbo.PM30200.DOCNUMBR AND dbo.CM20200.CHEKBKID = dbo.PM30200.CHEKBKID INNER JOIN dbo.PM00200 ON dbo.PM30200.VENDORID = dbo.PM00200.VENDORID WHERE (dbo.PM30200.DOCDATE > CONVERT(DATETIME, ' :00:00', 102)) AND (dbo.PM30200.DOCDATE < CONVERT(DATETIME, ' :00:00', 102)) AND (dbo.PM30200.VOIDED = 0) AND (dbo.CM20200.VOIDED = 0) GROUP BY dbo.PM30200.VENDORID, dbo.PM00200.VNDCHKNM, dbo.PM00200.ADDRESS1, dbo.PM00200.ADDRESS2, dbo.PM00200.CITY, dbo.PM00200.STATE, dbo.PM00200.ZIPCODE, dbo.PM00200.PHNUMBR1, dbo.PM00200.TXIDNMBR, dbo.PM00200.VENDSTTS, dbo.PM00200.TEN99TYPE, dbo.CM20200.CHEKBKID, dbo.PM00200.USERDEF1 HAVING (dbo.PM00200.TEN99TYPE > 1) AND (SUM(dbo.PM30200.DOCAMNT) >= 600) ORDER BY dbo.PM30200.VENDORID (TEN99Type>1 will exclude “not 1099” vendors) Sample SQL Query for 1099 amounts based upon Payables Transactions Available on Share My Code (http//dyndir.com)

Regional Chapters Editing 1099 Data in GP2010 or later Tools -> Utilities -> Purchasing -> Update 1099 information

Regional Chapters Enhanced Edit 1099 functionality in GP 2013  GP 2010 edit 1099 status was an all or nothing action. You would reclassify the vendor and their transactions for the year or date range.  Now in GP 2013 you will be able to review and edit individual transaction details, amounts, 1099 box, or 1099 type.

Regional Chapters Enhanced Edit 1099 functionality in GP 2013

Regional Chapters Best Practices: Tin Matching As Part of your Vendor Maintenance:  Perform Tin Matching as part of the New vendor creation process  “Offer” to withhold payment until correct information is submitted and validated  Near final bulk TIN match in December – Double Check record validity – Validate EIN vs. SSN number format – Review for appropriate box types (rent, medical) – Reminder: Box 14 Gross Proceeds paid to an attorney is for legal settlements only. Legal Services are recorded under Box 7 non-employee compensation

Regional Chapters Why Tin Match  Requirement for Payer To Secure a TIN Initial solicitation - for all payees, you must make the initial solicitation when the payee opens an account or when the transaction occurs using Form W-9 to request the taxpayer identification number.  The CP2100 or CP2100A Notice CP2100 and CP2100A notices are notices that inform a payer that he or she may be responsible for backup withholding. This may be due to missing or potentially incorrect taxpayer identification numbers identified during the processing of Form 1099 information returns. It is accompanied by a listing of missing, incorrect, and/or not currently issued payee TIN. Large volume filers (250 or more erroneous documents) receive the CP2100 notice, while all other filers receive the CP2100A notice.  Payers face potential fines of $100 per each 1099 filing with a missing or invalid TIN  "B" Notice If the IRS sends you a "B" notice indicating an incorrect payee TIN, you are required to backup withhold28% from a payee no later than 30 days after receipt. Backup withholding until the payee furnishes a TIN and certifies that it is correct.

Regional Chapters IRS Tin Matching  Various 3 rd parties will submit on your behalf (~$135 for up to 100,000 records)  Free through IRS e-services – Program Summary – TIN Matching tutorial  Required IRS e-services Personal Registration Information – Legal name (verified with IRS & SSA records) – Social Security Number (verified with SSA records) – Date of birth (verified with SSA records) – Telephone number, address – Adjusted Gross Income (AGI) from either your current year or prior year filed tax return (verified from IRS records) – Home mailing address (verified from IRS records). If you have moved since you last transacted with the IRS, please update your information when registering.

Regional Chapters TIN Matching The TIN Matching e-services allow “authorized payers” the opportunity to match 1099 payee information against IRS records prior to filing information returns. An authorized payer is one who has filed information returns with the IRS in at least one of the two past tax years.  Interactive TIN Matching will accept up to 25 payee TIN/Name combinations on-screen  Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to be matched via a text file submission. Both programs will:  Match the payee with W-9 name and TIN with IRS records;  Decrease backup withholding and penalty notices;  Reduce the error rate in TIN validation. The TIN Matching system is accessible 24 hours a day, 7 days a week.

Regional Chapters TIN Matching Results Tin1 Name 1 Tin2 Name 2 Tin3 Name 3 Tin4 Name 4

Regional Chapters 3 Methods for 1099 Reporting 1.Native Dynamics GP Printing & manual filing 2.Greenshades –GP integrated software with service bureau offering Pro – stand-alone software with service bureau offering

Regional Chapters Native Dynamics GP 1099 Process  Allows you to print 1099s for recipients  Does not generate the Federal summary report, it has to be manually created, it isn’t created in GP….  Must manage filing or efiling process on your own

Regional Chapters Printing 1099 To Print: Tools-> Routines -> Purchasing -> Print 1099 Enter your Company information to be printed You can print all Vendors or enter a range Print option for printing an alignment only form

Regional Chapters Adjusting the 1099 Form If the form alignment does not match your forms you will need to print to screen and edit in report writer. From the screen shot of the alignment form Click ‘Modify’ Once changes are made File->GP will return you to GP

Regional Chapters Look for changes in forms with GP software updates For the 2010 year end, an updated 1099-INT form was released introducing a new box 10, and changing the positioning of boxes 8/9. Such changes are typical each year, so be sure to refer to Year End updates to ensure your program is up to date: Sample Links: GP2010 Year End Update 10.htm?printpage=false&stext= INT GP10 Year End Update INT GP9 Year End Update htm?printpage=false&stext= INT

Regional Chapters Year End Forms Printing  Prints recipient copies of Federal W-2 and Federal 1099s directly to Blank Paper  Perforated Paper and Envelopes available  Print all forms, single form, or range of forms –  Search information on forms to print  Secure administrator controls over all functionality  Single source management of forms distribution, corrections and changes  Full reporting functionality including: – Employee requested changes – Print history – Electronic filing confirmations – Totals by company, state, dept or many more

Regional Chapters Administrator Control Screen

Regional Chapters Forms Editing Edit Form Information in Visual Forms Viewer Error Checking and Auto-Summing Fields

Regional Chapters Recipient Distribution  Offer electronic reprints available directly from a recipients home/office computer  Print, Edit, and Re-issue easily  Perforated Paper and Envelopes available  Mail Service – Printing, stuffing, and mailing – Includes postage for as low as $1.05 per form

Regional Chapters Employee Access Screen

Regional Chapters Dynamics GP enhancement requests Submit your feedback directly via the connect URL (left) or from the Communities Portal, Resources > Product Suggestions 1.Add Federal Summary Report to support 941 filings 2.Explore eFiling possibility 3.Other?

Regional Chapters QUESTIONS?