Setting up, processing and reporting for 1099 payments is easy in Dynamics GP.
There are basically three steps:
- Set up the vendor and identify as a 1099 vendor
- Process payables transactions to record the 1099 amounts, and issue checks
- Run the routine 1099 reports and adjust 1099 amounts if needed
Vendors can easily be identified as 1099 vendors in the Vendor Maintenance Options screen:
When making payments to 1099 vendors, make sure that the correct 1099 amount is recorded in the 1099 Amount field. The screen will default with the entire purchases amount. This amount can be modified if the entire amount of the invoice is not a 1099 amount. This can happen if vendors include supplies and services on the same invoice.
Here is a video that shows this in action: http://youtu.be/HOGi_PE5WvQ