Processing 1099s

Modified on Wed, 24 Jan 2024 at 05:49 PM

The IRS 1099 Form is a collection of tax forms documenting different types of payments made by an individual or a business. The payer fills out the form with the appropriate details and sends copies to the IRS, reporting payments made during the tax year. There are different 1099 Forms that report various types of income and how they were earned, such as through business, dividends, etc. 

What are the most common types of 1099 Forms?

The most common types of 1099 Forms are:

>>  1099-NEC

>> 1099-MISC

>> 1099-DIV

>> 1096


How to process the 1099 form in Business Central?

To process the 1099 form in Business Central we need to follow the following process: 


Open the Business Central home page, click on the global search type "1099 form boxes" and click on the related link. 

>> A List of 1099 forms will open. 

>> To make sure the forms are up to date, click on Process >> Update Form Boxes.  

>> Once the forms are updated. 


 When the forms are updated, the next step is to assign or verify assignments of the IRS 1099 Code on the Vendor Card. 

>> Go to the Vendor list, open a vendor card, under the General tab, and fill in the IRS 1099 Code. 

For example in the image below, MISC-03 IRS Code is assigned to the Vendor V000040. 


When the Vendor card is updated with the IRS Code, the user when creates a purchase invoice for that particular vendor. 

The system will automatically populate the IRS 1099 Code field. 

>> Inserted a line in the purchase sub form, and posted the Purchase Invoice. 

>> The purchase invoice is posted. 

>> Checking Vendor ledger entries for this vendor i.e. V000040. Notice the values in IRS 1099 Code and IRS 1099 Amount.  


For example let us create one more Purchase invoice with multiple purchase lines in it. In the example below a new purchase invocie is created with the same vendor i.e. V000040. 

There are 2 lines, in the purchase lines sub-form. Notice the column IRS 1099 Liable column. (Users can uncheck this box if they don't want to include this line as IRS 1099 liable)

>> Post the PI. 

There are 2 ways we can use to CORRECT the IRS 1099 code. 

1. On the line level: This is a Fundamentals functionality that helps users correct the IRS code on the line level. Follow the steps mentioned below: helps

Open the Vendor list >> Search for the vendor you wish to review the posted 1099 lines for, in our case it is V00040. 

>> Process >> Review Posted 1099 Lines. 

>> Review Posted 1099 Lines page will open. User can either mark the lines for 1099 liable or unmark the lines. For example in the image below you cans ee there are 4 lines which are liable for IRS 1099 for this Vendor, let's say we would like to remove one line from the IRS 1099 Liable. 

>> Simple uncheck IRS 1099 liable field from the line.  

>> Click on the Post 1099 Changes action. 

>> Click on Yes button. The changes will be posted. 

2. On the document level. The user can go the vendor ledger entries. 

>> Open Vendors list>> select the Vendor( we are taking the same example of V000040) >>  Click on Process >> Ledger Entries >> 

>> On the Vendor Ledger entries page >> hit Edit List to edit the IRS 1099 Code and IRS 1099 Amount fields. 


There are multiple 1099 reports. Go to Vendors list >> Reports >> you can find multiple Vendor 1099 reports. 


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