1099 processing for 2011 calendar year

1© 2010 Board of Regents of the University System of Georgia. All Rights Reserved.

1099 Processing for

2011 Calendar Year

GeorgiaFIRST Wimba Training Series



Agenda• Wimba Ground Rules• Review Objectives• Changes from previous year 1099 processing• Overview of the 1099 Process• 1099 Setup Steps• 1099 Processing throughout the year• AP_WTHD Process



Agenda• Reviewing 1099 Items• Making Corrections and Adjustments• 1099_RPT_PST process• Producing the IRS file• Final Steps before producing Copy B Reports• Generating Copy B Reports• WTHD_SENT process• 1099 Processing User’s Guide• Q & A



Wimba Ground Rules• Submit all questions to “Main Room” please• We may hold some questions to the end of

the session



Objectives• Review the changes and modifications in the

1099 process from the previous year• Walk through the 1099 process, detailing what

to look for and best practices for processing• Introduce users to 1099 Processing User’s

Guide



1099 Changes for CY2011• Ability to mask TINs on Copy B’s (removed)• BORRY010 Report: This report was modified to

include certain cancelled payments that were previously not being included.

• IRSTAX.001 output file had one minor change• Print 1099 Copy B pages were modified to

hide options that we do not use.



1099 Overview Process



1099 Setup Steps• Optional Review (See 1099 User’s Guide for

detailed instructions)– Review A1 Calendar– Review Withholding Entities– Review Withholding Rules– Review Withholding Types– Review Withholding Codes

• Setup/Review Report Control Information



Setup Report Control Information



1099 Processing Throughout the Year• Entering 1099 Vendors– BOR_AP_1099_VENDORS

• Entering 1099 Withholding Vouchers• Posting 1099 Vouchers – Payment Posting App Engine Process

• Year-Round Queries– BOR_AP_1099_PMTS– BOR_AP_1099_JE– BOR_AP_1099_NONRPT_CONSISTENT– BOR_AP_1099_MISMATCHED



Entering 1099 Vendors



BOR_AP_1099_VENDORS Query• Query shows 1099 applicable vendors for a

selected SetID and Vendor Status• Can be run throughout the year



BOR_AP_1099_VENDORS Query



Entering 1099 Vouchers



Queries to Run Year-Round• BOR_AP_1099_PMTS• BOR_AP_1099_JE• BOR_AP_1099_NONRPT_CONSISTENT• BOR_AP_1099_MISMATCHED



AP_WTHD Process• AP_WTHD Process is run to post withholdings• Combines voucher and payment info in the

PS_WTHD_TRXN_TBL• Reports generated from this table• Payments must be posted before running this

process



Withhold Transaction Post



1099 Review• Pages, Queries, and Reports designed to help

you review your 1099 transactions and determine if adjustments are needed



Review



Vouchers by Vendor• Vouchers by Vendor– Review vendor withholding transactions by vendor– Review one vendor at a time



Vouchers by Vendor



Review Payments to WH Vendors• Review Payments to Withholding Vendors– Review all payments and associated vouchers

made to withholding entities by vendor



Review Payments to WH Vendors



Review Vendor Balances by Class• Review 1099 Vendor Balances by Class– Review vendor total withholding transactions by

class over a specified period of time



Review Vendor Balances by Class



BOR_AP_1099_PMTS Query• List of all 1099 Reportable Items• Lists all payments where both the vendor and

voucher have been marked as ‘Reportable’ • Includes the Vendor, Voucher, and Payment IDs• Should be run for both Primary and “B” Business

Units– Should be no results for “B” Business Units

• Can be run throughout the year



BOR_AP_1099_PMTS Query



BOR_AP_1099_JE Query• Transactions entered through modules other than

AP and as online journal entries are not automatically included in 1099 reporting

• Query lists entries posted to the typically reportable accounts (7278xx, 719xxx, 7481xx, 751xxx)

• From the results, determine if any items need to be reflected in 1099 reporting

• If so, you will need to manually adjust (AP.080.090)• Can be run throughout the year



BOR_AP_1099_JE Query



BOR_AP_1099_NONRPT_CONSISTENT• List of transactions that are charged to typically

reportable accounts (719xxx, 7278xx, 7481xx, 751xxx) and will not be reported because:– Vendor is marked WH, but associated Vouchers are not– Vouchers are marked WH, but vendor is not– Neither vendor nor vouchers are marked WH

• Transactions listed here will not be reported unless both the Vendor and Vouchers are marked as Withholding




BOR_AP_1099_NONRPT_CONSISTENT



BOR_AP_1099_MISMATCHED Query• List of transactions charged to any account where

either the vendor is marked as WH, but the associated vouchers are not, or where the vouchers are marked as WH, but the vendor is not

• Transactions listed here will not be reported unless both the vendor and vouchers are marked as WH

• Differs from BOR_AP_1099_NONRPT_CONSISTENT query in that it is not limited to only typically reportable accounts




BOR_AP_1099_MISMATCHED Query



Duplicate Vendor Report• Duplicate Vendor Report– Identifies duplicate vendors that may require

adjustments to combine withholding totals for vendors with duplicate TINs

– If not adjusted, multiple 1099s may be issued to the vendor



Duplicate Vendor Report



Withholding Control Report• Withholding Control Report– Lists detailed information for each vendor with

Withholding Activity– On report, one page per vendor– Very detailed report– Does depend on the Post Withholdings process



Withholding Control Report



BOR_AP_1099_ADJUST Query• Lists all manual adjustments entered for the

selected calendar year• Recommended that you run this prior to

making adjustments for current 1099 processing year and then after they are made to compare results and verify adjustments were made correctly



BOR_AP_1099_ADJUST Query



BORRY010 Report• BORRY010 1099 Reportable Transactions

Report– Shows all 1099 reportable transactions, including

adjustments– Only ‘Amount’, ‘Amt Under Minimum’, and

‘Calculated Reportable Amount’ columns will be populated• This is until the Withhold 1099 Report Post

(1099_RPT_PST) and Withhold 1099 Report (AP_APY1099) processes are run



BORRY010 Report



Begin 1099 Process

Review 1099 Setup· Review Withholding Entities,

WH Rules, WH Types, and A1 Calendar (Optional)

· Setup/Review WH Codes (Optional)

· Setup/Review Report Control Information

Run Process AP_WTHD

(Post Withholdings)

Throughout YearEnter 1099 VendorsEnter 1099 VouchersPost 1099 Vouchers

Perform Review of 1099 Items· Vouchers by Vendor· Withholding Payments· Vendor Balance By Class· BOR_AP_1099_PMTS· BOR_AP_1099_JE· BOR_AP_1099_NONRPT_CONSISTENT· BOR_AP_1099_MISMATCH· Duplicate Vendor Report· Withhold Control Report (optional)· BOR_AP_1099_ADJUST· BORRY010 – 1099 Reportable

Transaction Report

Are Adjustments Needed?

Run Process1099_RPT_PST(Withhold 1099

Report Post)

Run Process AP_APY1099 -

Produce IRSTAX.001 File (Withhold 1099

Report)

Review· BORRY010 – 1099 Reportable

Transaction Report· BOR_AP_1099_SND_DTL_TOT· 1099 Withhold to Send Report

Run ProcessAP_COPY_B

Report(Print 1099 Copy

B)

Review, Print, & Send Copy B Documents

Send IRSTAX.001 File to IRS

Run ProcessWTHD_SENT (Withholding

Sent File)

End 1099 Process

Are you making manual

adjustments?

Make Manual Adjustments

(Adjust Withholding)

Complete Withholding Vendor Update (Update Vendor Withholdings) OR Withholding Invoice Line Update

(Update Voucher Line Withholding)

Run ProcessAP_WTHD_UPDT

(Update Withholdings)

No

Yes

Yes

No



What Requires Adjustments• A vendor is marked as Withholding, but their

vouchers are not• Vouchers are marked as Withholding, but the

vendor is not• An invoice line for a Withholding vendor

needs the withholding removed



Making Corrections and Adjustments

• When making an adjustment, use either Withholding Vendor Update, Withholding Invoice Line Update or adjust manually

• Whenever possible, make adjustments through Withholding Vendor Update or Withholding Invoice Line Update (instead of manual)– Updates the underlying tables as well



What Type of AdjustmentAre

Adjustments Needed

Withholding Vendor Update

Withholding Invoice Line

Update

Withholding Update Process

Manual Update

Perform Review Steps

Again



Withholding Vendor Update • Use to change withholding applicability or

class• Will apply to all vouchers for the vendor• When completed, must run the Withholding

Update Process• Make sure to update the actual Vendor first



Withholding Vendor Update• Example:– Vendor not created as 1099 Withholding Vendor

and you need to make all vouchers for that vendor ‘withholding’

– Need to update the actual vendor as well



Withholding Invoice Line Update• Use when needing to update one of the

following on an invoice line:– Withholding applicability– Withholding class

• Updates only the selected invoice lines• When completed, must run the Withholding Update

Process



Withholding Invoice Line Update• Example:– All of vendor’s vouchers marked as ‘withholding’,

yet one is not supposed to be a withholding voucher



Withholding Invoice Line Update



Withholding Update Process• Remember to run the Withholding Update

Process (AP_WTHD_UPDT) after completing Withholding Vendor Updates and Withholding Invoice Line Updates

• Process updates the withholding transactions and the underlying voucher tables



After Withholding Update Process



What Type of AdjustmentAre

Adjustments Needed


Withholding Invoice Line

Update


Manual Update

Perform Review Steps

Again



Manual Adjustments• Can manually adjust posted withholding

transactions by vendor or add withholding entries from a legacy or third party system

• Needed if transactions were entered via journal entry



Manual Adjustments• Example:– A wire was sent to Vendor– Journal Entry used to expense– Manual update needed to report that amount



Manual Adjustments



Making Corrections and Adjustments

• Very Important:When adjustments have been completed, go back and perform the review steps to ensure adjustments were made correctly



1099_RPT_PST• Withholding Report Post• Populates the Withholding 1099 table by

extracting data from the Withhold Transaction table and inserting it into the Withholding 1099 table, if it exceeds the reporting threshold

• System uses data to create a file for the IRS, forms for vendors, and to process corrections

• Must be run prior to Generating Withholding Reports



1099_RPT_PST



AP_APY1099• Generate Withholding Reports• Creates a flat file for the IRS• Populates the Withholding to Send and Copy B

tables



AP_APY1099



BORRY010 Report• BORRY010 – 1099 Reportable Transactions

Report– Shows all 1099 reportable transactions, including

adjustments– Compares the calculated reported amounts to the

actual reported amounts, as compiled by the 1099_RPT_PST and AP_APY1099 processes in the PS_WTHD_TO_SND_DTL records



BORRY010 Report



BOR_AP_1099_SND_DTL_TOT Query

• BOR_AP_1099_SND_DTL_TOT Query– Use query to obtain reportable totals, grouped by

class– Total should match both the total on the

BORRY010 Report and the 1099 Withholding to Send Detail Report



BOR_AP_1099_SND_DTL_TOT Query



1099 WH to Send Detail Report• 1099 Withholding to Send Detail Report– Report creates a replica of the data in the file you

are sending to the IRS– Use the report to review a summary of the data

stored in the Withholding Detail table



1099 WH to Send Detail Report



After Review…• Do any additional corrections need to be

made?• If so, make the corrections and perform

review steps again– If making corrections, remember to run

1099_RPT_PST & AP_APY1099 processes again



Begin 1099 Process

Review 1099 Setup· Review Withholding Entities,

WH Rules, WH Types, and A1 Calendar (Optional)

· Setup/Review WH Codes (Optional)

· Setup/Review Report Control Information

Run Process AP_WTHD

(Post Withholdings)

Throughout YearEnter 1099 VendorsEnter 1099 VouchersPost 1099 Vouchers

Perform Review of 1099 Items· Vouchers by Vendor· Withholding Payments· Vendor Balance By Class· BOR_AP_1099_PMTS· BOR_AP_1099_JE· BOR_AP_1099_NONRPT_CONSISTENT· BOR_AP_1099_MISMATCH· Duplicate Vendor Report· Withhold Control Report (optional)· BOR_AP_1099_ADJUST· BORRY010 – 1099 Reportable

Transaction Report

Are Adjustments Needed?

Run Process1099_RPT_PST(Withhold 1099

Report Post)

Run Process AP_APY1099 -

Produce IRSTAX.001 File (Withhold 1099

Report)

Review· BORRY010 – 1099 Reportable

Transaction Report· BOR_AP_1099_SND_DTL_TOT· 1099 Withhold to Send Report

Run ProcessAP_COPY_B

Report(Print 1099 Copy

B)

Review, Print, & Send Copy B Documents

Send IRSTAX.001 File to IRS

Run ProcessWTHD_SENT (Withholding

Sent File)

End 1099 Process

Are you making manual

adjustments?

Make Manual Adjustments

(Adjust Withholding)

Complete Withholding Vendor Update (Update Vendor Withholdings) OR Withholding Invoice Line Update

(Update Voucher Line Withholding)

Run ProcessAP_WTHD_UPDT

(Update Withholdings)

No

Yes

Yes

No



Print 1099 Copy B• Generate the Copy B Report to send to

vendors (AP_COPY_B)• Run the APCOPYB job



AP_COPYB PSJob



Additional Steps• Review, print and send Copy B Reports to

vendors• Send IRSTAX.001 file to IRS– Reference IRS Publication 1220 for instructions on

sending your file.– http://www.irs.gov/pub/irs-pdf/p1220.pdf

http://www.irs.gov/pub/irs-pdf/p1220.pdf



WTHD_SENT• Finalizes the 1099 reporting and file creation

process• Records all data in the file you have sent in the

Withholding Sent tables and deletes data from the Withholding to Send tables

• Do not run this process until you have sent file to IRS and received confirmation of acceptance by the IRS



WTHD_SENT



Common Problems & Solutions• Complete steps in order of flowchart• How to save a file • http://www.irs.gov/instructions/i1099gi/index.html • http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf



1099 Processing User’s Guide• Step-by-Step guide for 1099• Update for 2011 with minor changes• Located on GeorgiaFIRST website:– http://www.usg.edu/gafirst-fin/documentation/ – Under 1099

• Includes a checklist.

http://www.usg.edu/gafirst-fin/documentation/



Q & A



Wrap Up• Objectives– Reviewed the changes and modifications in the

1099 process from the previous year– Walked through the 1099 process, detailing what

to look for and best practices for processing– Introduced users to 1099 Processing User’s Guide

• Archive• Follow-Up Survey

1099 processing for 2011 calendar year

Documents

board of regents

university system of

new report control id

copy bs removedborry010

copy b pages

processingintroduce

overview process

previous yearwalk