ap suppliers
TRANSCRIPT
Manage Suppliers
PAGE: 1
AP Basic Chapter 2Section Objectives
At the end of this section, you should be able to: Enter new suppliers. Enter employees as suppliers. Perform supplier inquiry. Submit supplier reports. Perform supplier merges Understand supplier 1099 processing
PAGE: 2
Manage Suppliers: Overview
Set up suppliers to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. You must define a Supplier Master record for each Supplier you do business with. When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Oracle uses information you enter for suppliers and supplier sites to enter default values when you later enter transactions for a supplier. Most information you enter in the Suppliers window (Payment, Accounting, Control and Tax) is used to enter defaults in the Supplier Sites window.
PAGE: 3
Master Supplier(ABC Company)
Site(Detroit)PO Site
Site(Chicago)Pay Site
Site(Detroit)
Pay and PO site
Manage Suppliers: Overview
Trace the flow of Supplier default values:Oracle Payables contains a hierarchy of options and defaults to expedite and control data entry. Options and defaults set at one level automatically cascade down to all lower levels in the hierarchy. If desired, you can override options and defaults at lower levels in the hierarchy.
Enter Suppliers[Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box.]
PAGE: 4
SUPPLIER
PAYMENT ACCOUNTING CONTROL TAX
Terms Liability Flexfield Hold Invoices Tax NamePayment Method Payment Flexfield Invoice Amount Limit Tax GroupPay Group Distribution Set Hold Unmatched Invoices Tax Type
SUPPLIER SITE
PAYMENT ACCOUNTING CONTROL TAX
(Same as Supplier) (Same as Supplier) (Same as Supplier) (Same as Supplier)
INVOICE\PAYMENT
PAYMENT ACCOUNTING CONTROL TAX
(from Supplier Site) (From Supplier Site) (From Supplier Site) (From Supplier Site)
Manage Suppliers: Overview
Suppliers—Integration
OracleAssets
Oracle CashManagement
OracleGeneral Ledger
Oracle HumanResources
OraclePurchasing
OraclePayables
OracleProjects
How Oracle Products Use Supplier Information:Three Oracle financial applications use the Supplier windows: Oracle Payables, Oracle Purchasing, and Oracle Assets. If you use more than one of these products, supplier information is shared with the other products.To enter a purchase order, Oracle Purchasing needs at least one purchasing site. Oracle Purchasing uses supplier and supplier site information to enter default values such as Freight Terms and Shipment Method for all of the supplier's purchase orders. By defining receiving control options, you can ensure that products you receive are within the tolerance you specify and the guidelines you choose. Oracle Assets uses only the Supplier Name, Supplier Number, and Inactive Date information from the Supplier windows.
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Enter Suppliers: Master Data1. Navigate to the Suppliers window: Suppliers\Entry
HEADER REGION
Field Name Comments Required?
Supplier Name Enter unique Supplier Name. Use naming convention that minimizes risk of duplicate supplier.
Yes
Supplier Number System generated Yes
Alternate Name Company Identification Number
No
Taxpayer ID Company Tax Identification Number or employee SSN
No
Tax Registration Number
Value Added Tax Registration number for VAT supplier
No
PAGE: 6
Enter Suppliers: Master Data
Inactive On To prevent Invoice or Purchase Order entry for this supplier after a certain date
No
Enter additional supplier information via the appropriate Tabs of the Supplier window. Much of this information will default to the Supplier Site level.
GENERAL TAB
Field Name Comments Required?
Parent Supplier Name Name of suppliers parent enterprise if franchise\subsidiary. Parent enterprise must also be entered as supplier.
No
Number Parent Supplier number. System generated
No
Customer Number Number your supplier uses to identify you.
No
PAGE: 7
AP Basic Chapter 2: Master Data
The Classification Tab is used to define the type of supplier and their details:
CLASSIFICATION TAB
Field Name Comments Required?
Type Vendor type. Use to group suppliers for reporting etc.
Yes
Employee Name Name of employee Yes – if Type is Employee.
Employee Number Choose from list of values if Type is Employee
Yes-if Type is Employee
One Time Check if vendor will only be used once. No repeat business
No
SIC Standard Industry Code
No
Minority Owned Minority owned business. Choose from list of values, if applicable
No
Small Business Check if vendor meets small business criteria
No
Woman Owned Check if vendor meets woman owned criteria
No
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AP Basic Chapter 2 Master Data
Use the Accounting Tab to enter default Accounting distribution information. Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.
ACCOUNTING TAB
Field Name Comments Required?
Distribution Set Default Distribution Set for all suppliers. Defaults to all Invoices for supplier.
No
Liability Default Liability account for all invoices for supplier. System Generated
No
Prepayment Default Prepayment account for all invoices for supplier. System Generated
No
Future Dated Payment If you use future dated payments, enter account to use here
No
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AP Basic Chapter 2 Master Data
Use the Control Tab to prevent payment of multiple supplier invoices by applying holds to the supplier rather than to each individual invoice. You can enable several types of supplier related holds:
CONTROL TAB
Field Name Comments Required?
Invoice Amount Limit Enter a max dollar amount allowable on a particular invoice
No
Invoice Match Option Select to match supplier invoices to PO or Receipts for PO shipments.
No
Hold All Payments Check box to hold all payments to this vendor for Payment Batch.
No
Hold Unmatched Invoices
Check Box to hold all invoices not matched to purchase orders
No
Hold Unvalidated Invoices
Check box to hold all invoices that are currently not validated for payment
No
Payment Hold Reason Reason you are applying a hold to an Invoice.
No
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AP Basic Chapter 2Master DataUse the Payment Tab to enter supplier payment data. All supplier payment values default to new supplier sites you enter. Supplier site values default to invoices. You can override any payment defaults during supplier site entry.
PAYMENT TAB
Field Name Comments Required?
Terms Determines Payment Schedule for Invoice. Choose for list of values
Yes
PayGroup PayGroup assigned to supplier. Choose from list of values
No
Payment Priority Choose from list of values (1-99) which represents priority of payment
No
Invoice Currency USD NO
Payment Currency USD NO
Always Take Discount Check box if discount is always to be taken for supplier invoice.
No
Exclude Freight From Discount
Check box if excluding freight amount from discount for invoice
No
Pay Alone Payables creates a separate payment for each invoice.
No
Allow Interest Invoices Check Box to allow interest to be calculated and paid on invoices
No
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Terms Date Basis Date Payables uses to calculate a schedule payment for a supplier.
Yes
Pay Date Basis Determines pay date for a suppliers invoice.
Yes
Payment Method Method you most frequently use to pay supplier invoices.
Yes
Use the Bank Accounts Tab to record supplier bank accounts that are used for electronic payment transactions:
BANK ACCOUNTS TAB
Field Name Comments Required?
Bank Number Enter vendor’s bank number
No
Branch Enter vendor’s bank branch number
No
Account Name Enter vendor’s bank account name
No
Number Enter vendor’s bank account number
No
Check Digits Enter vendor’s check digits
No
Account Type Enter vendor’s bank account type
No
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AP Basic Chapter 2Master Data
If you pay suppliers with electronic payments, use the EDI Tab to enter the following information for your supplier:
EDI Tab
Field Name Comments Required?
Payment Method How the electronic payment will be made.
No
Payment Format Choose from list of values if Payment Method is selected
No
Remittance Method How remittance advice is sent to payee.
No
Remittance Instruction Electronic payment instructions.
No
Transaction Handling EDI Transaction Code specifying actions to be taken.
No
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AP Basic Chapter 2Master Data
Enter Invoice related Tax information in the Invoice Tax Tab:
INVOICE TAX TAB
Field Name Comments Required?
Invoice Tax Code Represents Tax Charges on Invoice for supplier.
No
Use Offset Taxes Enable this check box to record taxes on invoices while offsetting the tax liability.
No
Calculation Level Level (Header, Line, Tax Code, None) in which Payables automatically calculates taxes for supplier
No
Rounding Rule Round up or down for automatically calculated Tax Amount. Choose from pull down menu
No
Allow Override Check if calculation rule can be overridden
No
Distribution Amounts Include Tax
Check box if distribution amounts include tax
No
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AP Basic Chapter 2Master Data
Use the Tax Reporting Tab to enter data for 1099 reportable suppliers:
TAX REPORTING TAB
Field Name Comments Required?
Federal Check box if income is reportable federally to IRS.
No
Income Tax Type Select a default income tax type, which defaults to Purchase Order lines and Invoice distributions for 1099 reporting.
No
State Check box if income is state reportable
No
Reporting Site Reporting Site for 1099 processing
Reporting Name Enter if 1099 Reporting name is different than supplier name
Name Control Enter the first 4 characters of the supplier’s last name. This appears on the 1099 form.
Verification Date For suppliers taxpayer ID.
Organization Type
PAGE: 15
AP Basic Chapter 2Master Data
Enter Supplier Purchasing Values via the Purchasing Tab. All Supplier values default to new supplier sites you enter. Supplier site values default to Purchase Orders and Purchasing Requisitions you create:
PURCHASING TAB
Field Name Comments Required?
Ship-To Location Location where supplier sends shipments for goods\services.
No
Bill-To Location Location where supplier sends invoice for goods and services.
No
Ship Via Freight Carrier you use with a supplier.
No
FOB Free-on-Board code for a supplier.
No
Freight Terms Negotiated freight terms with a supplier
No
Create Debit Memo from RTS Transaction
Payables will automatically create DM when you enter a Return To Supplier in Purchasing
Purchase Order Hold Check if purchase orders should be on hold for this vendor
No
Purchasing Hold Reason
Reason you are preventing approval of purchase orders for this supplier. User Defined and must be enabled
No
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AP Basic Chapter 2Master Data
Use the Receiving Tab to enter Receiving values for a supplier. All supplier-receiving values default to new purchase orders you enter for a supplier. You can override any receiving defaults during Purchase Order entry:
RECEIVING TAB
Field Name Comments Required?
Enforce Ship-To Location
Determines if the receiving location must be the same as ship-to location.
Yes
Receipt Routing Default receipt routing that you assign goods (Direct Delivery, Inspection Required, Standard Receipt)
No
Match Approval Level
Specify 2-way, 3-way or 4-way matching of invoices, PO’s and Receipts.
Yes
Qty Received Tolerance
Enter percentage number of allowed over shipment
No
Qty Received Exception
How to handle receipts that exceed Received Tolerance (None, Warning, Reject)
No
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AP Basic Chapter 2Master Data
RECEIVING TAB
Field Name Comments Required?
Days Early Receipt Allowed
Enter number of days to allow early receipt
No
Allow Substitute Receipts
Check box to allow substitute receipts
No
Days Late Receipt Allowed
Enter number of days to allow late receipt
No
Allow Unordered Receipts
Check box to allow unordered receipts
No
Receipt Date Exception
How Purchasing handles early or late Receipts (None, Warning, Reject)
No
PAGE: 18
Enter Suppliers: Sites
Identify the different sites of a supplier:
Y
San Francisco
Supplier
Purchasing SitePay Site
Purchasing SiteRFQ Only Site
Pay Site
Tokyo Paris
Contacts Contacts Contacts
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AP Basic Chapter 2
Enter Detailed Supplier Site InformationA Supplier Site is an address where your Supplier conducts business. Sites are classified in Oracle Purchasing as Purchasing Sites, RFQ Only sites and\or Pay sites. You cannot enter an Invoice for a supplier that has not been defined with a Pay Site. In the General Tab, check the appropriate Site Uses check boxes to indicate which specific business functions are performed at each site. A Pay Site is a supplier site to which you send payment for an invoice; you cannot enter an invoice for a supplier site that is not defined as a pay site. A Purchasing Site is a supplier site from which you create a purchase order for goods or services. An RFQ Only Site is a supplier site from which you receive quotations; this should be checked only if you do not allow entering purchase orders for a supplier site. Primary Pay Site defines the Default pay site for the Supplier. The Procurement Card checkbox indicates the site that accepts your Procurement Card. Enter contact information specific to that site in the Contacts Tab. This information is for your reference only and is not used by the system. All other Supplier Site information defaults from your Supplier information (General, Accounting, Control, Payment, Bank Accounts, EDI, Invoice Tax, Tax Reporting, Purchasing Tabs). You can modify this information if necessary.
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AP Basic Chapter 2
Enter detailed supplier site information: Supply\Enter
Select the Site button from the Supplier window:
Field Name Comments Required?
Site Name Displays existing supplier site name
Yes
Country Enter Country No
Address Enter street address Yes
City Enter city Yes
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AP Basic Chapter 2
Field Name Comments Required?
State Enter state Yes
Postal Code Enter postal code Yes
Province Enter Province name No
County Enter County name No
Language Choose language from list of values
No
Inactive On Enter date vendor is inactive
No
Pay Site Check box if address is a pay site
No
Primary Pay Check box if address is a primary pay site.
Purchasing Site Check box if address is a purchasing site
No
RFQ Site Only Check box if address is an RFQ site
No
Procurement Card Site accepts the credit card brands of your procurement card
No
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AP Basic Chapter 2
Use the Contacts Tab to enter supplier site contact information. This information is for User reference only and is not used by the System:
CONTACT TAB
Field Name Comments Required?
LAST Contact last name Yes
First Contact first name No
M Contact Middle Initial No
Prefix Mr\Miss\Mrs No
Title Contacts job title No
Department Contacts Department No
Mail Stop Contact mail stop No
Inactive On Enter Date to inactivate contact
No
Telephone Enter contact Telephone number
No
Alternate Telephone Enter alternate number for the contact
No
Fax Enter contact FAX number
No
E-mail Enter contact email address
No
URL Enter contact home page
No
Alternate Contact Name
Enter name for another supplier contact
No
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Enter Suppliers: Employees
Enter an employee as a supplier so that you can pay the employee’s expense reports. Enable the “Automatically Create Employee as Supplier” Payables Option on the Expense Report tab to automatically enter an employee as a supplier during Invoice Import.
Enter the employee manually as a supplier in the Suppliers window. In the Classification Tab of the Suppliers window select ‘Employee’ for the Supplier Type:
PAGE: 24
Enter Suppliers: Employee Expense Reports
Expense Reports are created in Oracle to capture and pay the business related expenses of employees. You enter expense reports using the ‘Expense Reports’ window in Payables. You can also enter expense report information in Oracle Internet Expenses (iExpenses) and Oracle Projects and import expense report data into Payables. Payables automatically saves the expense information in the Expense Report Interface tables AP_Expense_Report_Headers_All and AP_Expense_Report_Lines_All
When you submit the Expense Report Import program, Payables creates invoices from the expense reports. This process populates the Invoice tables AP_Invoices_All and AP_Invoice_Distributions_All. You then validate and pay these invoices like any other invoice. Before creating expense reports, you must define all employees in Oracle. If you are using Oracle HRMS, you enter your employees in the ‘People’ window. If you are not using Oracle HRMS, setup your employees in the ‘Enter Person’ window in Oracle GL.
You can also define Expense Report Templates to model the different types of expense reports (formats) your company uses. You can define default values for expense items to simplify the Expense Report process.
Invoice\Entry\Expense\Report
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Review Supplier Information: Online
You can find Suppliers by using the Find Suppliers window OR by entering a query directly into the ‘Suppliers Window’:
In the Find Suppliers window you can enter a wide variety of search criteria, including supplier name, supplier number, employee name, supplier type, payment terms, parent supplier, and payment priority range. You then choose the Find button to navigate to the Suppliers window, where Payables displays all suppliers that match the Find criteria. From the Suppliers window, you can review all information about a supplier.
Suppliers\Inquiry:
Field Name Comments Required?
Supplier Name Use first few letters of Vendor Name & ‘%’
No
Taxpayer Id List of values No
Inactive Dates List of values No
Supplier Type List of values No
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AP Basic Chapter 2
Field Name Comments Required?
Parent Supplier No
Payment Priorities No
Reporting Name No
Payment Terms No
Pay Group No
Supplier Number No
Tax Registration No
One Time No
Employee Number No
Parent Number No
Federal No
Income Tax Type No
State No
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Review Supplier Information: Submit Supplier Reports
Submit reports to review supplier information, including invoice and payment information.
Oracle Payables Supplier Reports
Report Name Description
Vendors Report Reviews supplier, supplier site, and supplier site contract information.
Vendor Audit Report Reviews supplier names whose names are similar up to a specified number of characters.
New Vendor/New Vendor Site Listing
Reviews new supplier and supplier sites.
Vendor Payment History Reviews the payment history, including void payments, for a supplier or group of suppliers.
Vendor Paid Invoice History
Reviews the payment history, including discount and partial payment information, for a supplier or group of suppliers.
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Merge Suppliers: Overview
The supplier merge process:
Merge Suppliers
Supplier Merge
Maintain Audit Trail
Review Merge Results
Identify Duplicate Suppliers
ABC Corp ABC Corporation
PurchaseOrder
Invoice
Vendor Merge ReportPO Headers Updates Report
Vendor AuditReport Purchase
Order
Invoice
ABC Corp
PurchaseOrder
Invoice
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Merge Suppliers: Overview
Merging Suppliers:
Although the AP system will not allow you to enter duplicate supplier names, you may inadvertently define the same supplier by using two different names. For example, you might enter ABC Corporation and ABC Corp, or you might enter a contractor under his name and his company name. You might also create duplicate suppliers if you import suppliers from another accounts payable system. Use Supplier Merge to combine two or more suppliers that you identify as duplicates. You can update purchase orders and invoices for the old supplier to refer to the new supplier. The Supplier Merge window also enables you to merge supplier sites so that any sites assigned to an old supplier can be reassigned to the new supplier. When you merge suppliers, you transfer invoices, purchase orders, or both from one supplier and site to another supplier and site. You can transfer to a new supplier and site unpaid invoices only or all invoices (including paid and partially paid invoices). Oracle Payables will not merge invoices if the merge would create a duplicate invoice for a supplier. For best auditing results, transfer both paid and unpaid invoices to a new supplier and site so you can identify duplicate payments easily. Also, transfer both purchase orders and invoices to a new supplier and site so all invoice and purchase order information refers to the same supplier.After you have merged suppliers, Oracle Payables automatically prints the Vendor Merge Report as an audit trail of your supplier merge activity. The Vendor Merge Report also lists any duplicate invoices that it did not merge. Research the duplicated invoice. You can then update the invoice number if the invoice has not been paid or posted.
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Merge Suppliers: Identify duplicate suppliers
Review records to identify duplicate suppliers and merge duplicate suppliers.
Identify Duplicate SuppliersReview supplier records periodically to prevent duplicate suppliers, improve system performance, and provide accurate supplier reporting.Use the Suppliers Report and the Suppliers Audit Report to help identify duplicate suppliers.
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AP Basic Chapter 2
To Merge duplicate suppliers navigate to the ‘Supplier Merge’ window: Suppliers\Supplier Merge.
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Merge Suppliers
Use the Supplier Merge window to merge suppliers.1. Use the pop-up list to choose what invoices you want copied
to the new supplier (All\Unpaid\None).2. Select the PO checkbox if you want to transfer all purchase
orders form the old supplier to the new supplier.3. Enter the Old Supplier Name.4. Enter the old Supplier Site.
5. Select the Copy Site checkbox if you want to reassign the Old Supplier Site to the New Supplier. During the merge, Oracle Payables enters the merge date as the inactive date for the old supplier site and creates a new site for the new supplier with the information you selected to transfer.
6. Do not select the Copy Site check box if you want to merge the Old Supplier site information with all existing New Supplier Site information. You need to enter one of the New Supplier’s existing sites in the Sites field. During the merge, Oracle Payables enters the merge date as the inactive date for the old supplier site and combines all of the information you selected with the new supplier site information.
7. Choose Merge to submit a concurrent request to run the Supplier Merge Program which transfers the information from the Old Supplier to the New Supplier and also runs the Purchase Order Header Updates Report and the Vendor Merge Report.
8. You will get a message advising this action is irreversible.9. Review the log file and reports after the request is complete.
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Merge Suppliers:
Field Name Comments Required?
Invoices Select which invoices to transfer to the new supplier: All, Unpaid, None.
Yes
PO Check this box if you want to transfer all Purchase order information to the new supplier.
No
Name Enter the Supplier Name from which you want to merge information.
Yes
Site Enter the Supplier Site from which you want to merge information.
Yes
Copy Site Select to perform copy VS. Merge (Copy will keep the existing Site)
No
Name To Suppler Name Yes
Site To Supplier Site Name Yes, unless Copy Site
PAGE: 34
Process 1099 Suppliers:
Process 1099 suppliers to comply with Internal Revenue Service (IRS) regulations that require accounts payable departments to report 1099 payment information for 1099 suppliers (Suppliers who perform contract supplier services such as lawn service and building maintenance over $600.00).
1099 steps:
1. Set up 1099 reporting.
2. Enter 1099 suppliers.
3. Create 1099 payment information.
4. Identify and resolve 1099 exceptions.
5. Submit 1099 reports.
PAGE: 35
Process 1099 Suppliers
Implement 1099 reporting using Oracle Payables.
Submit 1099 Reports
Pay toNov 21, 1994
$500.00
Enter 1099 Details for Suppliers
Set Up 1099 Reporting
Identify and Resolve 1099
Exceptions
Select Combined Filing Program
Payables Option
Enter and Pay 1099 Invoices
DefineTax Regions
DefineTax Reporting
Entities
Enter Supplier
1096 Forms1099 Forms
1099 Payments1099 Tape
1099 Vendor Exceptions Report1099 Invoice Exceptions Report
PAGE: 36
Process 1099 Suppliers: Setups
Setting Up Oracle Payables for 1099 Reporting:
1) Define your tax reporting entities that produce 1099 reports. 2) To use combined federal and state 1099 filing, and to produce K-Records and B-Records, select the Combined Filing Program Payables option.
K-Records: A summary record of all 1099 payments made to a supplier for a single tax region that participates in Combined Filing Program
B-Records: A summary record of all 1099 payments made to a supplier for one tax region.
3) If you use combined federal and state filing, define your tax regions.
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Process 1099 SuppliersReporting Entities:
1) A Reporting Entity is any person or organization that has a unique Tax Identification Number (TIN).
2) Enter a unique tax identification number (TIN) for each reporting entity.
3) Define an unlimited number of reporting entities.4) Assign each balancing segment to only one reporting entity.5) Submit 1099 reports for each reporting entity.
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AP Basic Chapter 2
Navigate to the Reporting Entity window to define the reporting entities that will produce 1099 reports:
Setup\Tax\Reporting Entities.
In the Reporting Entity window, enter the Name, Location, optional description and Tax ID Number of the Reporting Entity you are defining.
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AP Basic Chapter 2
Enable the Combined Filing Program Payables option. Navigate to the Suppliers Tab of the Payables Option window:
Setup\Options\Payables
Select Supplier Region and check the ‘Combined Filing Program’ check box.
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AP Basic Chapter 2
Use the ‘Income Tax Regions’ window to define tax regions and reporting specifications for tax regions if participating in the Combined Filing Program. Use the predefined region abbreviations, descriptions, and codes for all U.S. states, the District of Columbia, and some U.S. territories.Setup\Tax\Regions:
Enter the region Abbreviation you are defining. Enter the region's Internal Revenue Service Code. Enter a Description for the region if it is not predefined. Enter for the Reporting Limit Amount the minimum amount
Payables uses to determine whether to report on a supplier's payments. If you do not enter an amount, Payables assumes the limit is zero.
Select the Method that Payables uses to compare actual payments to the Reporting Limit Amount:
o Compare Individually. Compare to the Reporting Limit Amount the sum of payments for each 1099 MISC Income Tax type.
o Compare Sum. Compare to the Reporting Limit Amount the sum of payments for all 1099 MISC Income tax types.
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AP Basic Chapter 2o Same as Federal. Ignore the region Reporting Limit
Amount, and instead use the Federal reporting limit, which Payables has predefined as $600.
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AP Basic Chapter 2
Identify a supplier as 1099 Federal and State reportable via the Tax Reporting region Tab of the Suppliers window:
Suppliers\Entry: Select the Tax Reporting region:
Use this form to enter 1099 supplier information. Select the Federal and State Reportable checkboxes. Select an Income Tax Type. For example; this supplier is an income tax type, of MISC7 which is Non-employee compensation.
Enter a 1099 Reporting Name
PAGE: 43
Process 1099 Suppliers: Create 1099 Payment information
Create 1099 Payments When you enter Invoices for 1099 Suppliers, enter an Income Tax
Type and Income Tax Region for appropriate Invoice Distributions.
Approve and pay invoices assigned with 1099 payment information.
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Process 1099 Suppliers: Identify and Resolve 1099 Exceptions:
Identify and Resolve 1099 Exceptions:
Submit for each reporting entity the 1099 Exceptions Report to identify the following exceptions:
o 1099 invoice distributions with no Income Tax Typeo 1099 invoice distributions with invalid or missing income
tax regions
Submit the 1099 Supplier Exceptions Report to identify and resolve exceptions including the following:
o Suppliers with null or invalid state abbreviations.o Suppliers that will be flagged as incomplete in the 1099
Electronic Media report.o Suppliers with missing or non-standard Tax Identification
Numbers.
PAGE: 45
Process 1099 Suppliers: Generate 1099 Reports:
Generate 1099 Reports: 1099 Forms. 1099 forms report on the total 1099 MISC
payments for a particular 1099 supplier. Generate 1099 forms for each tax reporting entity in your organization. Submit to the Internal Revenue Service for each 1099 supplier, and send a copy to the supplier.
1096 Form. A 1096 form is a summary of each 1099 form type you transmit on paper. Payables generates the report on a preformatted form from the Internal Revenue Service. Submit to the Internal Revenue Service for each 1099 MISC type paid during the calendar year.
1099 Electronic Media. If you submit 250 or more 1099 forms, the Internal Revenue Service requires you to file your 1099 payment information on magnetic media or electronically.
Form 941. Send this form to the Internal Revenue Service to report total supplier withholding for a quarter. Your Accounts Payable department should create a manual payment for the total amount withheld, and you should remit this amount and the 1096 Form to the Internal Revenue Service.
1099 Payments Report. Run this report to review 1099 payments by supplier.
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