Overriding Payables 1099 Amounts

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Posted on by Jeff Garrison

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Hello all -

I have a situation where I need to override the 1099 amounts of a vendor. The vendor is a Sub-Contractor as was required to have an amount taken out each pay period. The way it was entered, the amount that was taken out was put into an "advance" account in the G.L. and the Invoice amount was the net amount.

How can I go back into the Invoices and put the gross amount in for the 1099 amount so that it can be reported to the IRS correctly?

Thanks

Jeff G

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Richard Whaley 25,195 on at

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If you go to Transactions->edit 1099 amounts you can set the 1099 amounts individually to the correct values before printing the documents.

There is also a utility that will update the settings on documents. You will then need to reconcile.

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Victoria Yudin 22,769 on at

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Richard - I don't think the Edit 1099 Transaction Information window will let you enter a 1099 amount that is greater than the invoice. :-(

Jeff - you can change the amount that will print on the 1099 by going to Cards | Purchasing | 1099 Details. You will need to first calculate the difference between what it currently shows for this vendor and what you want to print on the 1099. Then select the year and one of the months on the 1099 Details window and add the difference you've calculated to that month. I typically like to make all changes like this in December, just to be consistent. (Only the Month display will let you edit the numbers, the Year display is inquiry only.)

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Community Member on at

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Victoria always gives excellent advice. I would add on word of caution. If you edit the monthly 1099 amounts to change what prints then you should avoid running the payables reconciliation. The reconciliation will recalculate the monthly 1099 amounts based on the posted invoices and that will overwrite your manual changes.

Keith McConnell

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Richard Whaley 25,195 on at

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Im going to stick with manufacturing, Victoria

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L Vail 65,271 on at

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Hi Jeff,

I am being dense here, but did the vendor get paid for the full amount? I do not understand how putting it in a different gl account would change the 1099 amount. What happened to the amount in the advance account? If you do change the 1099 amount, be very careful when you reconcile, as was mentioned by Keith.

Kind regards,

Leslie

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Napolo 766 on at

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I have to combine two companies that split off but used the same EIN. One company has a credit and the other has a balance 1099able.

My first go to, is to update the new company with the credit balance in January but, it doesn't allow for credits.

Is there another option aside from manually changing this on the 1099 form?

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Victoria Yudin 22,769 on at

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Hi Nicole,

Since the 1099s print on a yearly basis, there is no reason that you have to make changes in the correct month. Find a month that has a 1099 amount higher than the credit and make the change there. If there are multiple months with amounts, you can just delete them all and put the correct total for the year in one month. As long as the total for the year is correct, your 1099s will print correctly.

Hope that helps.

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Napolo 766 on at

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That makes sense. Thank you!

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Renee831 10 on at

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Victoria, Do you know if this "fix" still works? If I enter an amount in one of the months for 2019, it will print the corrected full (increased) amount on the 1099?

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