Please review this blog to learn about the payables 1099 form changes for the 2021 tax year, what those specific changes are, along with the most frequently asked questions we’ve seen on these changes in support. Enjoy!

What Payables Forms Changed for the 2021 year?

There are three payables form changes to be aware of this year:

  1. 1099 – MISC form
  2. 1099-DIV form
  3. 1099-NEC form

Due Dates for 1099 form submittal/filing to the IRS can be found here: https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

Here is more detail around what has changed for each payables form this year:

1099-MISC FORM CHANGES: https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

 Boxes that have changed are highlighted in green, and the specific changes are noted below:

  • Box 11: Fish purchased for resale
    • 2020 form: Box 11 was empty
  • Name of form changed to Miscellaneous Information
    • 2020 form: Name of form was Miscellaneous Income

1099-DIV FORM: 2021 Form 1099-DIV (irs.gov)

With the release of the 2021 Year-End Update, two boxes were added to the 1099 – DIV form. The size of box 2c and 2d were reduced in size to accommodate the new boxes.  Boxes that have changed are highlighted in green, and the specific changes are noted below:

  • Box 2e: Section 897 ordinary dividends
    • 2020 form: Box 2e did not exist on the form
  • Box 2f: Section 897 capital gain
    • 2020 form: Box 2f did not exist on the form

1099- NEC form: 2021 Form 1099-NEC (irs.gov)

 Boxes that have changed are highlighted in green, and the specific changes are noted below:

Due to this new IRS condensed form, not all address lines in Dynamics will be able to print on the form.

  • The form itself is smaller to accommodate three NEC forms per page. Several fields were changed to accommodate this.
    • 2020 form: Two NEC forms were printed per page.
  • Box 2: Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale
    • 2020 form: Box 2 was not used (but existed as a blank red box)
  • FATCA filing requirement box no longer exists
    • 2020 form: FATCA filing requirement box was located immediately above the 2nd TIN not. box.
  • Unused box immediately below City or town, state or provide, country and ZIP or foreign postal code box has been removed.
    • 2020 form: There was a blank unused box immediately below City or town, state or provide, country and ZIP or foreign postal code box.
  • Unused box immediately below box 4 has been removed.
    • 2020 form: There was a blank unused box immediately below box 4.

Additional things to be aware of this year:

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. That email address is also displayed on the Print 1099 window.  You can locate the 1096 Form by going to Purchasing Routines and selecting Print 1099. For more details around this feature see this blog:

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'!! This default setting can be found by going into Purchasing Routines and selecting Print 1099. For more information around this feature, see this blog:

https://community.dynamics.com/gp/b/dynamicsgp/posts/microsoft-dynamics-gp-october-2021---payables-1099-default-to-single-feed

With the release of the 2021 Year-End Update, you will notice that the box number labels 1-9 are displayed with a zero in front of them to improve sorting performance. Don't worry, what you see is completely normal! Here's an example:

Prior to the 2021 Year-End Update:

With the release of the 2021 Year-End Update:

Frequently Asked Questions:

Question 1: Where can I find instructions for the 1099 MISC and 1099 NEC forms for the 2021 year?

Answer 1: Here is a link to the IRS instructions pertaining to the 1099 MISC and 1099 NEC forms for the 2021 year: 2021 Instructions for Forms 1099-MISC and 1099-NEC (irs.gov)

 

 

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 forms from prior years, GP does not store old/historical 1099 form formats. As such, GP will always print the ‘current’ 1099 form regardless of the year 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: We recommend you 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, you can simply reprint from the ‘file’ you saved when the form format matched the 1099 you printed at that time.

 

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

Answer 3: Microsoft Dynamics GP pulls the data you see on the 1099 forms from the PM00204 (Purchasing 1099 Period Detail) table.

  

Question 4: Can I print the new 1099 forms in GP if I don’t install the 2021 Year-End Update?

Answer 4: No, it is not possible to print the new 1099 forms in Microsoft Dynamics GP until you upgrade to a version of GP where the new form exists (18.4.1384). The 2021 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.

With that being said, many Partners are providing the ability to print the new 1099-forms without installing the 2021 Year-End Update. Feel free to reach out to your partner for more information on this.

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: You have a couple of options (we always recommend testing first in a test company with a copy of live data to ensure you get desired results):

Option 1 – Use the 1099 Utility to update 1099 tax types and amounts for a specific vendor(s):

  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’.
  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.

Option 2 – Use the Edit 1099 Transaction Information window to modify specific 1099 tax types and boxes associated with specific transactions:

  1. Click on Transactions >> Purchasing >> Edit 1099 Information to open the Edit 1099 Transaction Information window.
  2. Enter an appropriate Vendor ID.
  3. Restrict by voucher number if desired.
  4. You can 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.

Once you’ve changed 1099 data per the methods 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.

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. 

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 ALL fields on the report need to be moved in the same direction (up/down/left/right), you can test the following:

1. Print the 1099 forms to the screen.

2. In the Screen Output window, click Print.

3. In Print Dialog box, adjust the horizontal and vertical alignments in the 'Alignment (Inches)' section according to the following scenarios:

  • If the form prints too high, enter a positive vertical adjustment (.25 equals one line).

  • If the form prints too low, enter a negative vertical adjustment (-.25 equals one line).

  • If the form prints too far to the right, enter a negative horizontal adjustment.

  • If the form prints too far to the left, enter a positive horizontal adjustment.

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.

 

  1. In report writer, highlight the problem field and use the up/down/left/right arrows to move the field in the desired direction.
  2. We recommend you make small changes each time (use the arrow only one or two times each time), then test the report again.
  3. 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.

Question 7: After upgrading to 18.4.1384, one or more of the following occurs:

Error in 1099 Details window (Cards | Purchasing | 1099 Details) after pulling up a vendor and tabbing off the Vendor ID field when the vendor is a 1099 MISC vendor, “A save operation on table 'pm1099PeriodDetailTemp' has created a duplicate key”

All vendors print on the 1099 Miscellaneous Edit list unexpectedly.

Answer 7: The problem is stemming from the MISC setup records in the PM40104 table.

Here’s what the PM40104 should look like on version 18.3.1384:

In erring environments, we are seeing TWO TEN99BOXTEXT fields for 12 in the PM40104. This is where the primary key error is coming from. GP is trying to insert a record for the TEN99BOXTEXT field twice and it can’t.

Additionally, in some instances we’re seeing the DOLRAMNT for TEN99BOXNUMBER 15 showing as zero in this table incorrectly. It should be 600.00.

There are 3 records that may need to be fixed if they are wrong:

TEN99BOXNUMBER 11 should have a TEN99BOXTEXT of 13 and a DOLRAMNT of .01  

TEN99BOXNUMBER 12 should have a TEN99BOXTEXT of 14 and a DOLRAMNT of .01

TEN99BOXNUMBER 15 should have a DOLRAMNT of 600.00

To resolve these problems, Test the following to fix the PM40104 data in the TEST Company:

Run the following scripts to view the records that need to be updated:

SELECT * FROM PM40104 WHERE TEN99BOXNUMBER = 11 AND TEN99TYPE = 3

SELECT * FROM PM40104 WHERE TEN99BOXNUMBER = 12 AND TEN99TYPE = 3

SELECT * FROM PM40104 WHERE TEN99BOXNUMBER = 15 AND TEN99TYPE = 3

After verifying these are the records that need to be updated, run the following to update them appropriately:

UPDATE PM40104 SET TEN99BOXTEXT = 13, DOLRAMNT = .01 WHERE TEN99BOXNUMBER = 11 AND TEN99TYPE = 3
UPDATE PM40104 SET TEN99BOXTEXT = 14, DOLRAMNT = .01 WHERE TEN99BOXNUMBER = 12 AND TEN99TYPE = 3
UPDATE PM40104 SET DOLRAMNT = 600.00 WHERE TEN99BOXNUMBER = 15 AND TEN99TYPE = 3

Verify the problem/errors no longer occur.

Question 8: I’ve upgraded to version 18.4.1384 and when I print the canned 1099 NEC form to screen, I see 2 forms per page instead of 3.

Answer 8: We’ve seen a handful of cases in which, when the user prints the canned 1099 NEC form to a physical printer, they see 3 forms per page as expected. However, when they print the same report to screen: 2 forms are showing unexpectedly.

We haven’t been able to reproduce this internally. However, we recommend that if you are printing the canned 1099 NEC form to screen and seeing 2 forms per page unexpectedly, please test printing to a physical printer as well to confirm whether the form prints accurately there.

*Important Note: As Year-End progresses we'll update this blog with additional FAQs (if applicable).

Assistance for Payables Year End Close and 1099's:

If you are creating a case 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

Resources:

 

Be sure to refer to the 2021 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. 

 

Andrea Melroe | Sr. Technical Advisor | Microsoft Dynamics GP