Accounts Payable
1099 Processing (Build • Proof • Edit • Print)
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Overview

The 1099 Processing programs create and maintain 1099 records for vendors who are marked as 1099 Required in Vendor Setup. Typical workflow:

  1. Build 1099 File for the tax year (creates/refreshes 1099 totals).
  2. Print 1099 Proof Report (review who will receive a 1099 and the dollar amounts).
  3. Modify 1099 Record (adjust name/address/EIN amounts if needed).
  4. Print 1099’s (final output after verification).
Important: The system supports selecting a 1099 Type per vendor (for example, different 1099 box types). Configure this in Vendor Setup and maintain valid 1099 Type Codes in Setup & Maintenance.

Process 1099’s Menu

This menu is the starting point for all 1099 functions in Accounts Payable. Enter the option number to open the desired program.

Menu Options

  • (1) Build 1099 File — Creates/updates the 1099 records for the selected year.
  • (2) Print 1099 Proof Report — Prints a review report of the built records.
  • (3) Modify 1099 Record — Edit (or create) a single record using EIN / record key lookup.
  • (4) Print 1099’s — Produces final 1099 output after review.

Field / Prompt

  • Which would you like (1 - 4) — Enter an option number.

Build 1099 File

The Build 1099 program creates 1099 records for vendors flagged as 1099 Required (see Vendor Setup). It loads totals by tax year into the appropriate 1099 buckets (based on the vendor’s configured 1099 type/box rules).

Fields

  • Company — Company number to build for (multi-company environments).
  • Year — Tax year to build (example: 2025).
Tip: Build first, then validate with the Proof Report. If you make manual edits later, document what you changed and why (see Modify 1099 Record).

Print 1099 Proof Report

The 1099 Proof Report prints a proof listing of all 1099 records built for the selected year. Use this report to review:

  • Vendor name and mailing address
  • EIN / Tax ID and vendor account
  • Amounts in the applicable 1099 categories (boxes)

On-Screen Commands

  • Line# — Jump to a specific line/page (where supported).
  • Q — Quit.
  • TOP — Return to top of report.
  • P — Print.

What to look for

  • Missing vendors that should receive a 1099 (check Vendor Setup flags/type codes).
  • Unexpected totals (verify payments and posting dates for the year).
  • Address/EIN problems (fix in Vendor Setup or use Modify 1099 Record for one-off corrections).

Modify 1099 Record

Use Modify 1099 Information to edit or create a single 1099 record. This is typically used after reviewing the Proof Report when a vendor requires corrections (name/address/EIN or dollar amounts in specific boxes).

Key Fields

  • Record Key — Unique key for the 1099 record (often includes type/year/vendor reference).
  • Account # — Vendor account number.
  • Name / Address / City / State / Zip — Mailing fields printed on the 1099.
  • Rents — Amount for the Rents box (when applicable).
  • Royalties — Amount for the Royalties box (when applicable).
  • Other Income — Amount for Other Income (common for 1099-MISC).
  • Fed Tax Whld — Federal tax withheld.
  • Fishing Proceeds — Amount for fishing boat proceeds (if used).
  • Medical & Health — Medical/health payments (if used).
  • Non-Employee Compensation — Non-employee compensation (commonly 1099-NEC).
  • Substitute Payments — Substitute payments in lieu of dividends/interest.
  • Crop Insurance Proceeds — Crop insurance proceeds (if used).
  • State Income Withheld — State income tax withheld (if used).
  • Direct Product Sales (Y/N) — Indicator for direct sales reporting (where applicable).

Commands

  • Q — Quit.
  • TOP — Return to top of entry.
  • DELETE — Delete the displayed record (use extreme caution).
  • P — Post (save) changes.
  • PP — Post & Print (save changes and immediately print output, where supported).
Note: If you re-run Build 1099 File after making manual edits, the build process may overwrite totals depending on configuration and workflow. Use consistent internal controls and keep a record of any manual adjustments.

Best Practices

  • Confirm Vendor Setup first: Verify 1099 Required is correct, EIN/Tax ID is present, and the vendor’s 1099 Type is set properly.
  • Build once, then validate: Run Build 1099 File, then Print 1099 Proof Report for review before any final printing.
  • Use the Proof Report as your checklist: Mark off vendors and amounts during review—especially for large totals or unusual box allocations.
  • Document manual changes: If you use Modify 1099 Record, record the reason, who approved it, and what changed.
  • Avoid unnecessary rebuilds after edits: Rebuilding after manual edits may overwrite totals depending on workflow; use rebuilds only when you intentionally want to refresh from AP history.
  • Approvals before printing: Many companies require manager review before printing/tax filing output—follow your internal controls.

FAQ

Why is a vendor missing from the Proof Report?
Most commonly the vendor is not flagged as 1099 Required, does not have the correct 1099 type configured, or has no qualifying payments for the selected year. Start with Vendor Setup and then re-run the build if needed.
I see a wrong amount in a 1099 box. What should I do?
First confirm the year and that all relevant AP transactions were posted with the correct dates and distribution rules. If the record still needs adjustment, use Modify 1099 Record and document the reason/approval.
Should I edit the vendor address in Vendor Setup or in Modify 1099?
Prefer correcting the source (Vendor Setup) so future documents are correct. Use Modify 1099 for one-off, year-specific corrections when appropriate and approved.
Can I re-open and reprint if I discover an issue?
Yes—records can be corrected and reprinted, but use controlled procedures. Keep copies of the original proof/print runs and obtain approval before issuing corrected forms.