1099 Reporting

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 Objectives

After completing this module, you should be able to:

• Describe how to enable 1099 suppliers
• Enter invoices for 1099 suppliers
• Update 1099 information
• Understand 1099 reporting
• Understand 1099 set up options
• Understand additional implementation considerations

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Entering Invoices for Suppliers Subject to Income
Tax Reporting Requirements

If you set up a supplier as federally reportable and assign a

default income tax type to the supplier, then that value
defaults down to each invoice distribution you enter for
that supplier.

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 Suppliers Subject to Income Tax
Reporting Requirements

To define a supplier as subject to income tax reporting

requirements:
• Enter a Taxpayer ID
• Enable the Federal option and select an Income
Tax Type (1099 MISC Type).
• Enable the State option, if applicable
• Enable the Allow Withholding Tax option

If you enter a purchase order for a 1099 supplier, then

Oracle Purchasing retains the Income Tax Type
information at the purchase order line level.

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 Federal Region

Reportable to the United States Internal Revenue Service

for 1099 purposes.
In the United States, you must report to the Internal
Revenue Service certain types of payments you make to
1099 reportable suppliers.

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 Income Tax Type Region

Income tax type for a United States 1099 reportable

supplier.
You choose from a list of 1099 Miscellaneous Tax
types.
Purchasing retains the Income Tax Type at the
purchase order line level for a supplier’s purchase
orders.

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 State Region

You enable this option if you participate in the United

States Internal Revenue Service Combined Filing Program
and the supplier is reportable to a state taxing authority.
Payables uses this status for reporting purposes only.

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 Reporting Name Region

Tax reporting name for a supplier subject to United

States Internal Revenue Service (IRS) income tax
reporting requirements.
Required only if the tax reporting name for the supplier
is different from the supplier name.
In accordance with IRS requirements, Payables prints
this name, instead of the supplier name, on all 1099
reports for the supplier.

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 Reporting Site Region

This reporting supplier site’s address is printed on the

1099 form and included in the 1099 Electronic Media
report.
Payables displays the income tax reporting site for the
supplier if you have already defined a supplier site as
the tax reporting site in the Tax Reporting region in the
Supplier Sites window.

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 Updating 1099 Information

You can update 1099 information for your suppliers. If

you paid a supplier before you set up the supplier as a
1099 supplier, run the Update Income Tax Details
Utility.
Or, if you need to update only a few invoices, you can
update the 1099 types in the Lines tab

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 Recording a Refund From a One–Time 1099
Supplier

If you get a refund from a one–time 1099 supplier, you

need to record the refund in Payables so that the 1099
reports are accurate.
Enter a credit memo that you match to the original invoice.

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 1099 Reporting

1096 Form

1099 Forms

1099 Invoice Exceptions Report

1099 Payments Report

1099 Electronic Media

1099 Supplier Exceptions Report

Tax Information Verification Letter

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 1096 Form

The United States Internal Revenue Service requires that

you send a 1096 form as a summary of each 1099 form
type you transmit on paper.
Payables generates the report on a preformatted form from
the Internal Revenue Service.

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 1099 Reporting Overview

In the United States, you must report to the Internal

Revenue Service certain types of payments you make to
1099 reportable suppliers. In the supplier window, you can
designate suppliers as federally reportable.

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 1099 Forms

1099 forms report on the total 1099 MISC payments for

a particular 1099 supplier.
You generate 1099 forms for each tax reporting entity
in your organization.
You can use either of the 1099 Forms reports in
Payables:
• 1099 Forms report
• 1099 Forms—Comma Delimited Format report

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 1099 Invoice Exceptions Report

You use the 1099 Invoice Exceptions Report to review paid

invoice distributions with inaccurate or missing 1099
income tax information.

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 1099 Payments Report

You use this report to review payments made to your 1099

reportable suppliers. You can use this report to reconcile
to your 1099 Forms, or to prepare additional reporting.

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 1099 Electronic Media

You submit the 1099 Electronic Media report to

generate your summarized 1099 information in
electronic format as required by the Internal Revenue
Service. You can create this file in a format to either
send electronically or store on a diskette or magnetic
tape to send to the Internal Revenue Service.

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 1099 Supplier Exceptions Report

You use the 1099 Supplier Exceptions Report to review

suppliers with inaccurate or incomplete 1099 income
tax information.
You can run the 1099 Supplier Exceptions Report
before you submit your 1099 reports to identify
suppliers that Payables will treat as exceptions in your
1099 reports.

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 Tax Information Verification Letter

This report generates the Tax Information Verification

Letter, which requests a supplier to furnish or confirm
tax information.
Payables generates this standard letter for each
supplier that meets the criteria you select.
Payables does not generate this letter for suppliers
with the Type set to Employee in the Suppliers
window.

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 Tax Allocation During Invoice Validation

E-Business Tax automatically creates the appropriate

distributions and allocations for Tax lines when you
validate the invoice.

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Tax Amount Verification During Invoice Validation

During Invoice Validation, E-Business Tax automatically

verifies that you have correctly entered all tax drivers on
an invoice. If tax exceptions exist, one or more tax holds
are placed on the invoice.

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 Payables Options: Tax Reporting

Tax Reporting

Combined Filing
Program

Use Pay Site Tax

Region

Income Tax
Region

Copyright © 2007, Oracle. All rights reserved.

 Summary

In this module, you should have learned how to:

• Describe how to enable 1099 suppliers
• Enter invoices for 1099 suppliers
• Update 1099 information
• Understand 1099 reporting
• Understand 1099 set up options
• Understand additional implementation considerations

Copyright © 2007, Oracle. All rights reserved.