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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Mixed 1099 / non‑1099 ...
Small and medium business | Business Central, N...
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Mixed 1099 / non‑1099 lines on one Purchase Invoice

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Posted on by TL-02012316-0 28
Hi-
 
We're creating a Purchase Invoice for a vendor that is IRS 1099 Liable. The invoice contains multiple lines, where some lines should be 1099-reportable and others should not.  It appears that with the new 1099 fields update in BC the IRS 1099 Liable field does not change the value that ultimately gets posted to the IRS 1099 Reporting Amount field on the vendor ledger.   On the invoice lines we've set some lines to IRS 1099 Liable = Yes and others to No but it's still calculating the 1099 at the full amount.
 
Has line-level 1099 liability been removed/changed as part of the newer 1099 process, making 1099 reporting invoice-level only? Trying to find out if this is expected or am I missing something in the setup?  Any help or workarounds would be appreciated.  I know entering non-liable lines as a separate invoice is an option, just not an ideal one.
 
Thanks in advance
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Verified answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 17,104 Super User 2026 Season 1 on at
    Yes this is expected in the newer 1099 process: BC now mainly calculates 1099 from the purchase document/vendor ledger entry level, using the header 1099 fields, so mixed IRS 1099 Liable = Yes/No values on purchase lines don’t reliably reduce the final IRS 1099 Reporting Amount; in other words, standard behavior is effectively invoice-level, and the usual workarounds are either splitting the invoice or manually correcting the posted Vendor Ledger Entry 1099 amount afterward.
     
    Regards,
    Oussama Sabbouh
  • Verified answer
    YUN ZHU Profile Picture
    YUN ZHU 101,723 Super User 2026 Season 1 on at
    You can try the third-party extensions provided by the partners below.
    Or you could submit this idea to Microsoft.
    Missing a feature? Post or vote for ideas on: aka.ms/BCIdeas
     
    Thanks.
    ZHU
  • mjjoachim Profile Picture
    mjjoachim 5 on at
    The old IRS 1099 Liable field was marked obsolete before a replacement was added to the new IRS Forms extension. However, a new 1099 Liable field was added in the IRS Forms extension in Business Central 2025 release wave 1. That new field ("1099 Liable", not "IRS 1099 Liable") should allow you to mark individual invoice lines as 1099 liable.

    The old IRS 1099 Liable field has been removed in Business Central 2026 release wave 1.

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