1099 not taking discounts when freight included.

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Posted on by Brenda Willey

2,510

The original 1099 amount of a particular invoice is $295. There was no freight or tax on the invoice. We took a discount of $5.90 at time of payment. The system has calculated the actual 1099 amount as $289.10 ($295 for services rendered less the $5.90 discount taken). I'm ok with that.

The same vendor has another invoice where the original 1099 amount is $265. There was freight and tax on the invoice totaling $29.59. We took a 2% discount of $5.30 on the original 1099 amount at time of payment. The system is calculating the 1099 amount as $265. Shouldn't the 1099 amount on this invoice be $259.70 ($265 for service rendered less the discount taken of $5.30)?

In analyzing other invoices for this vendor it appears if there are no other charges on the invoice the system deducts the discount taken when calculating the 1099 reportable amount, but the system isn't deducting the discount taken when an invoice also includes freight and sales tax.

Why is it happening??

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