Microsoft Dynamics GP Year-End Update 2022: Payables Management 1099 Form changes

Wow, here we are again!!  Are you ready for the 2022 Year-end?  Well, never fear, we got your back!   This is the first of many blog articles to help you sail smoothly through Year-end again.  Form changes have been a popular question this year, so we moved this article up so you can get the information more quickly on just what the form changes are for this year. I hope this blog will help you to get ready for the 2022 year-end and answer all your questions about upcoming form changes.  Enjoy!

NOTE:
If you applied the 2022 US year end update that includes the 18.5 release and now on some of your customized / modified reports you may receive this error message:
Calculated field, "Inactive Address Footer Message"

This is happening due to a table change we made with a feature in 18.5 around the Vendor Address
(+) Microsoft Dynamics GP October 2022- Inactivate Vendor Address Record - Microsoft Dynamics GP Community

What we would recommend is to print the original of this report and it will work fine for you. This is happening due to the modified version of the report you are printing.

Due to these table changes, the report upgrade process does not fix this issue automatically for you, the easiest way is to print the original report and if you need to make modifications again to their report based on what they have, you can.

You can also try to take the report package of just this custom report and import it into the 18.5 dictionary and it may wok, depending on your modifications and version you upgraded from.

What changes can I expect for 1099 forms for the 2022 year?

• The IRS has removed the pre-printed YEAR on all the forms, so GP will now print the year on the forms (1099-INT, 1099-DIV, 1099-MISC, and 1099-NEC) 

• The 1099-MISC had some boxes moved around on the form and some boxes have been renumbered on the 1099-MISC and 1099-DIV forms. 

• Did you know that you can now print the1099-NEC form WITH LINES? !!  No need to buy preprinted 1099-NEC forms any longer.  See details below. 

What should I be aware of for 'new features' this year in Dynamics GP?

1.  The user will now need to enter the 1099 YEAR in the Print 1099 window in Dynamics GP as highlighted below.  The system will then print the specified year on all the printed forms (1099-INT, 1099-DIV, 1099-MISC and 1099-NEC). 

2. With the October 2022 release (and included in the 2022 Year-end release), you can now print the 1099-NEC form WITH LINES!   Now when you select to print the 1099-NEC form, you have the option of printing the form 'One-Wide with Box' on blank paper (as shown in the screen-print above in the Red box.) (Note that this option only prints Copy B [1 per page] for electronic filers.  If you are not e-filing, and need to print the 3-part form, you would still want to purchase pre-printed forms and use the 'Single Feed' or 'Continuous' printing options.) Review this blog article for more details:

Microsoft Dynamics GP October 2022- Payables 1099-NEC form prints with LINES and BOXES - Microsoft Dynamics GP Community

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What specific changes have been made to the forms this year?

Please refer to the changes noted below for each form:

IMPORTANT NOTE: If you had any alignment issues last year, please make sure that you do not have Security set to a modified form still !!!!

1099-MISC FORM: Form 1099-MISC (Rev. January 2022) (irs.gov)

The 2022 Year-End Update includes the following changes for the 1099-MISC form as highlighted below:

• The IRS removed the 'preprinted YEAR' from the form and separated that box into two boxes where the upper box contains the words "Form 1099-MISC' with the revised date noted below it, and the lower box is populated with a fillable field: 'For calendar year 20___' field, which is designated by the user in Dynamics GP. 

• The Account Number box and 2nd Tin not. box have both been moved down a line, leaving the FACTA filing requirement box by itself on the line above, with an empty box to the left of it. 

• The FATCA Filing requirement box has now been labeled as Box 13, pushing boxes formerly labeled as 13,14,15,16 and 17 to now be relabeled as boxes 14,15,16,17 and 18.    

(UPDATE/NOTE:  All windows in Dynamics GP for the 1099-MISC form still display Box '17' for State Income, when the updated 1099-MISC form has State Income under Box '18'.  This is a display issue only in Dynamics GP.  Go ahead and populate Box 17 for the State Income amount, as it will still print out correctly in Box 18 on the printed form, so it not a critical issue. This will be reviewed for a fix at a later time.)

1099-DIV FORM: 2022 Form 1099-DIV (irs.gov)

The 2022 Year-End Update includes the following changes for the 1099-DIV form as highlighted below:

• The IRS removed the 'preprinted YEAR' from the form and separated that box into two boxes where the upper box contains the words "Form 1099-DIV' with the revised date noted below it, and the lower box is populated with a fillable field: 'For calendar year 20___' field, which is designated by the user in Dynamics GP. 

• The FATCA Filing requirement box has now been labeled as Box 11, pushing boxes formerly labeled as 11,12,13,14 and 15 to now be relabeled as boxes 12,13,14,15 and 16.  

(UPDATE/NOTE:  All windows in Dynamics GP for the 1099-DIV form only have Boxes 11, 12, and 15 listed (with last year's labels).   Go ahead and use these boxes to populate Boxes 12, 13 and 16 on the printed form.  [Boxes 11, 14 and 15 will print correctly on the form.]  This is a display issue only in Dynamics GP windows. This issue will be reviewed for a fix at a later time.)

1099-INT FORM:  Form 1099-INT (Rev. January 2022) (irs.gov)

The 2022 Year-End Update includes the following changes for the 1099-INT form as highlighted below:

• The IRS removed the 'preprinted YEAR' from the form and separated that box into two boxes where the upper box contains the words "Form 1099-INT' with the revised date noted below it, and the lower box is populated with a fillable field: 'For calendar year 20___' field, which is designated by the user in Dynamics GP. 

1099-NEC FORM: Form 1099-NEC (Rev. January 2022) (irs.gov)

The 2022 Year-End Update includes the following changes for the 1099-NEC form as highlighted below:

• The IRS removed the 'preprinted YEAR' from the form and separated that box into two boxes where the upper box contains the words "Form 1099-NEC' with the revised date noted below it, and the lower box is populated with a fillable field: 'For calendar year 20___' field, which is designated by the user in Dynamics GP. 

(NOTE:  The new 'One Wide with Box' printing option to print the 1099-NEC form only prints Copy B [1 per page] for electronic filers.  If you are not e-filing, and need to print the 3-part form, you would still want to purchase pre-printed forms and use the 'Single Feed' or 'Continuous' printing options.   See Q6 below for any alignment issues.) 

1099-R FORM:  2022 Form 1099-R (irs.gov)

The Year printed on the form has been updated to 2022.  There are no other form changes. 

1096 SUMMARY FORM: 2022 Form 1096 (irs.gov)

The Year printed on the form has been updated to 2022.  A note was also added to the Instructions on the bottom of the form (not shown below).

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FREQUENTLY ASKED QUESTIONS: 

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Question 1: Where can I find instructions and Due Dates for the 1099 MISC and 1099 NEC forms for the 2022 year?

Answer 1: Refer to the IRS instructions (revised January 2022) for the 1099-MISC and 1099-NEC forms: 2022 Instructions for Forms 1099-MISC and 1099-NEC (irs.gov)

For Due Dates, please refer to the When to File section on the IRS website for more information: https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

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Question 2: Is there any guidance on what GP users should plan to do for reprints or corrected 1099’s from prior years?

Answer 2: The 1099 forms printed in Microsoft Dynamics GP will always be consistent with a specific version of GP in conjunction with the IRS guidelines in place at that point in time. This has always been the case in Microsoft Dynamics GP.

While GP does allow users to reprint historical 1099 data from prior years, GP does not store old/historical 1099 form formats. As such, GP will always print the ‘current’ 1099 form included in the current GP code regardless of the year/year's data the user chooses to print.

As a best practice, in case you need to reprint 1099 forms from prior years after the format of that form has changed in GP: It is recommended to save the 1099 forms to a file each year (in addition to printing them). That way, if you need to reprint a 1099 after the format of the form has changed in the system, you can simply reprint it from the ‘file’ you saved (and not from GP) so you get the 'format' you need for that year's form.

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Question 3: Where does the 1099 information I see on the 1099 forms pull from?

Answer 3: Microsoft Dynamics GP pulls data directly from the PM00204 (Purchasing 1099 Period Detail) table.  The 1099 Details window (Cards | Purchasing | 1099 Details) also pulls directly from this table. 

Note: Visit this blog article to obtain a SQL VIEW for 1099's that can be used with Smartlist. 

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Question 4: Can I print the new 1099 forms in GP if I don’t install the 2022 Year-End Update?

Answer 4: No, it is not possible to print the 1099 forms (with Rev. January 2022 date) in Microsoft Dynamics GP until you upgrade to a version of GP where the new form exists. The 2022 changes for the 1099-forms are BOTH dexterity code based, and forms/reports based. You cannot get the changes for the new 1099-forms without the new dexterity code in place.

Basically, upgrading is the only supported method to get the updated form.  If you are not able to upgrade, you would have to reach out to your Microsoft Partner to see if they can assist.  

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Question 5: I need to change both the vendor 1099 tax type and 1099 data before I print the 1099 this year. How can I do that?

Answer 5:  Dynamics GP includes fantastic capabilities to edit 1099 information for both the vendor and/or transactions.  Please review the options outlined below: (It is always recommended to test first in a TEST company with a copy of live data to ensure you get desired results):

Option 1 – Update the 1099 Purchasing utility to change the 1099 Tax type and 1099 Box number at the Vendor level only, or for Transactions only, or for both Vendor and 1099 transactions for a specific vendor or range of vendors:

1. Click Microsoft Dynamics GP >> Tools >> Utilities >> Purchasing >> Update 1099 Information to open the Update 1099 Information window.
2. Mark the radio button next to ‘Vendor and 1099 Transactions’ (to change a vendor from one 1099 type to another)
3. In the ‘From’ restriction on the left-hand side:
   • Tax Type = the tax type you want to change/update
   • 1099 Box Number = the box number you want to change/update
4. In the ‘To’ restriction on the left-hand side:
   • Tax Type = the tax type you want the vendor data to reflect
   • 1099 Box Number = the box number you want the vendor data to reflect
5. In the Range restriction: Be sure to enter a restriction here You can restrict on Vendor ID, Vendor Name, and/or Vendor Class, and then click the Insert button to insert the restriction. *IF you do not enter a restriction here, GP will try to update all vendors – so it’s important to restrict appropriately!
6. Once you’ve verified your settings/restrictions are accurate click on the Process button to process the changes. A report will print where you can review the information that has changed.
   
   Note:  Note that the 'Vendor and 1099 Transactions' option also includes the option for "Not a 1099 Vendor' in both the FROM and TO sections, so can be a slick tool to use to move vendor FROM or TO 'not' being 1099-able.  

Option 2 – Use the Edit 1099 Transaction Information window to modify specific 1099 tax types, 1099 Box numbers and 1099 Amounts on the vendor's specific Transactions for a single Vendor:

1. Click on Transactions >> Purchasing >> Edit 1099 Information to open the Edit 1099 Transaction Information window.
2. Enter an appropriate Vendor ID. (When you tab off the Vendor ID, all 1099 debit transactions for the vendor will populate the lower part of the window.) 
3. Leave the default of 'ALL (or restrict by voucher number, document number, or date if desired.)
4. You can select to view 1099 Debit Transactions, Add Debit Transactions, or All Credit Transactions.
   • Note: Each time you make a change to the data you’d like to view, be sure to click the ‘Redisplay’ icon at the top of the window.
5. Use this window to change the Tax Type, the Box Number, and/or the 1099 Amount for a specific transaction.
6. Once you’ve made appropriate changes click on the ‘Process’ button at the top of the window to process the changes.

If you made any changes above, view the 1099 information in the 1099 Details window (Cards >> Purchasing >> 1099 Details) for the vendor and verify the information is accurate. Test printing the appropriate 1099, and verify the information is accurate on the printed form.

NOTE: The options outlined above can also be found in this blog article (with screen-prints) where the windows/features described are available in current versions of Dynamics GP as well: 

Editing made EASY for 1099s in Microsoft Dynamics GP - Microsoft Dynamics GP Community

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Question 6: When I print my1099 form, the alignment is off and/or I’m having problems with some specific fields. How can I fix this?

Answer 6: As always, environmental factors may be coming into play such as printer drivers along with individual printer settings. Additionally, many users modified 1099 reports last year (especially in regard to the NEC form). As such the very first thing we recommend you do this year is to verify you are printing the CANNED 1099 report, and then move on from there.  (Consider printing the 1099-NEC form with the 'One Wide with Boxes' option so it prints with lines and you do not need to use a preprinted form.)

First, ensure you are printing the canned 1099 report:

1. Click on Microsoft Dynamics GP >> Tools >> Setup >> System >> User Security.
2. Pull up the user who is logged into GP, and the company you’re logged into.
3. Click on the ‘Alternate/Modified Forms and Reports’ link at the bottom of the window to open the Alternate/Modified Forms and Reports window.
4. In the Alternate/Modified Forms and Reports window:
   • Product = All Products
   • Series = Purchasing
   • Type = Reports
5. Expand the Purchasing Folder.
6. Expand the appropriate 1099 report folder.
7. Make sure the canned version of the report is marked (does not say modified), and verify whether the canned report prints correctly:

Next, verify whether ALL fields on the report need to be moved or not.

If you are having problems with only one or two fields, you can test the following to modify your report:

1. Print the problem 1099 report to the screen.
2. Click on the ‘Modify’ button at the top to open the report in Report Writer.

3. In report writer, highlight the problem field and use the up/down/left/right arrow keys to move the field(s) in the desired direction.
4. Make small changes each time (use the arrow only one or two times each time) and test the report again, and keep testing in-between each change.
5. To print the modified version of the report, make sure you grant access to the modified report in the Alternate/Modified Forms and reports window appropriately prior to printing it.

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Question 7:  Why aren't the 1099-NEC forms printing for all vendors?  

Answer 7: There are thresholds for each box that must be met in order for the form to print.   You can find the thresholds under Microsoft Dynamics GP >> Tools >> Setup >> Purchasing >> Payables >> 1099 Setup for each respective form.  Note that the threshold for Box 1 for the 1099-NEC form is $600.00, so the form will only print for those vendors who have more than $600 in box 1. 

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Question 8: When I print the canned 1099 NEC form to screen, I see 2 forms per page instead of 3 per page.

Answer 8:  If you print to screen and see 2 forms per page, try actually printing to the printer, as typically all 3 forms print as expected when printing to the printer.  

If you still get 2 forms per page when printing to the printer, make sure you are using an un-modified form, and then try updating your Printer drivers, try a different printer, and also change your default Printer in Dynamics GP (so different drivers are used.) 

(Note that the 1099-NEC form using 'one wide with box' (that prints with the lines/boxes) only prints ONE FORM (Copy B) to be mailed to the vendor, and an alternate method is used to e-file to the IRS.  This feature to print with boxes does not print the 3-part 1099-NEC form.)  

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Question 9:  Do I need to install the October 2022 Release in order to print the 1099-NEC form with lines?

Answer 9:  No, the October 2022 release is already included in the 2022 Year-end Update.  Each new release is all-inclusive of all prior releases before it.  When printing the 1099-NEC form choose the Form type of 'One Wide with Box'.

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Question 10:  Why would the 1099 totals not be correct? 

Answer 10:   Please be advised that the 1099 amounts go by the PAID DATE, not the INVOICE Date.  So when checking your math for 1099 amounts, be sure to add up the amounts according to when the invoice was paid.  For example, an invoice entered into the system with a December document date, but the check was issued in January, would be reported in the 1099 for the new year since it was paid in January. 

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Question 11:  What does the Purchasing reconcile utility option for '1099 amounts' do (under the Calendar year reconcile option)? 

Answer 11:  The reconcile utility for '1099 Amounts' will recalculate the 1099 amounts per period based on the transactional data found in the PM open and history transaction and apply tables and will overwrite the totals in the Purchasing 1099 Period Detail table (PM00204). 

Note that any manual edits made in the '1099 Details' window (Cards | Purchasing | 1099 Details) will be lost. 

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Question 12:  How should I fix incorrect 1099 Amounts?

Answer 12:  There are two windows where you can edit 1099 Amounts. The first is the '1099 Details' window, where you can make quick lump sum edits to the 1099 Amounts that will print on the 1099 form.  However, the changes made here are only to the 1099 table and will be lost if the user runs the Purchasing reconcile option for '1099 Amounts'.  Therefore, we recommend making any changes directly to the Payables transactions themselves in the Edit 1099 Transaction Information window ( under Transactions | Purchasing | Edit 1099 Transaction Information) so the change is stored permanently on the transactions in the PM tables, and also updates the 1099 table (PM00204) at the same time. If you make the change to the transaction, then the reconcile option for 1099 Amounts will include that change and not overwrite it.   (See Option 2 in Question 5 above for more details.)

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Question 13:  Does Dynamics GP have the ability to create an electronic file for 1099 forms to e-file to the IRS?

Answer 13:  Although this would be a great new feature to have, there is no electronic file capability for 1099's included in Dynamics GP at this time.  However, there are many inexpensive solutions out there from Microsoft ISV's compatible with Dynamics GP that could be used to e-file.  You can query on the ISV Central site below for solutions or consult your Microsoft Partner for further assistance. 

ISV Central | A Community Resource for Microsoft Dynamics Partners and Customers (isv-central.com)

Note: The IRS also offers a free service for e-filing 1099 forms that you can check out on your own: (up to 100 records per upload).  Consult the IRS for any additional assistance or questions on this service, as this feature would not be supported by Microsoft Dynamics GP Support.

E-file Forms 1099 With IRIS | Internal Revenue Service (irs.gov)

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*Important Note: As Year-End progresses any new issues or updates found will be updated on this blog with additional FAQs or Notes, etc. (if applicable).

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RESOURCES:

You may use the GP blog site, Dynamics GP Community or Support for Business sites for assistance for Payables Year End Close and 1099 questions:

• Microsoft Dynamics GP Blog
• Microsoft Dynamics Community
• Microsoft Dynamics Support

If you are creating a new support case yourself or with the Technical Support Team, please refer to the routing below to ensure you are routed to the correct Professional for assistance: 

           Support Topic Selection:  Financial – Payables Management

           Sub-topic Selection:  Year End Procedures

ADDITIONAL RESOURCES:

• Microsoft Dynamics Payables Documentation
  
  
• Tax Forms – 800-432-1281 (these are the only preprinted 1099 forms tested to be compatible with Microsoft Dynamics GP)
  
  
• Here are some new feature blogs from last year (2021) for your reference that would also still be included on the current release:
  

  With the October 2021 release, the Payables 1096 Form will print the company's email address for the Address ID which is selected in the Print 1099: window. https://community.dynamics.com/gp/b/dynamicsgp/posts/microsoft-dynamics-gp-october-2021---payables-1096-form-print-email-address

  With the October 2021 release, when printing 1099's, the form type will default to 'Single Feed' instead of 'Continuous': 
  https://community.dynamics.com/gp/b/dynamicsgp/posts/microsoft-dynamics-gp-october-2021---payables-1099-default-to-single-feed

Be sure to refer to the 2022 Year-End Blog Schedule to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.

I hope this is helpful and that you have a successful Year-End!!  If you have any feedback or suggestions, please let us know. 

Cheryl Waswick | Sr. Support Engineer | Microsoft Dynamics GP