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Former Member

1099 Questions

I have the following 2 questions regarding 1099’s. One has to do with the fact that I read somewhere that after you have added tax number information to a vendor (s), that there is a program that you need to run so that SAP will flag the appropriate previously recorded payment information so that it will be reported on the vendor’s 1099. Can someone please tell me what the program name is?

Second question has to do with the Payer’s (company code) name, address, and tax identification number that appears on the 1099.. Where is this entered into the system. When I print out my 1099’s for 2007, this information is blank (I have the recipient’s information but not the payer’s). I am sure that there is some configuration type setting or master data that I have failed to enter. I would appreciate it if someone would tell me where I need to enter this information.

Thanks in advance for your assistance.

Greg Brown

FI/CO consultant

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    author's profile photo Former Member
    Former Member
    Posted on Jan 17, 2008 at 04:19 AM

    Everyting Rau said was correct. I've just finished up working with our A/P department on getting our 1099s out. The RFWT0020 program is a life saver. We assigned a Tcode to this so our A/P group could run this as needed. The program documentation in the Information (I) button on this program is quite good.

    Also our A/P department occasionally had added tax via the above where it was not warranted and we had to remove this tax information from the individual documents on FB02. We had to open up config to be able to change the whtax info after the invoice cleared.

    As for the Payer information, when you run the RFIDYYWT (transaction S_P00_07000134) program, it will pop up with a window for Additional selection for US (also available via the Country Specific Selection button). In this area there is a section almost to the bottom titled Payer/Transfer Agent.

    You need to fill this information out and it will then print on the 1099 forms. We also had to fill in the $600 limit in this area as well.

    Hope this helps, let me know if you need more info.

    Laurie

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    • Hi Radha,

      I'm having the same issue when creating a single 1099 file with multiple co codes. SAP (S_P00_07000134) is breaking it up into different batches within the 1099 file. So in other words .. it inputs the "F" & "T" record lines in between each company codes. As per the IRS this is unacceptable, and the file should have only one "F" & "T" record.

      Could you please share your solution if resolved or please update us on the progress.

      Thanks,

      Barnabas

  • Posted on Jan 16, 2008 at 06:27 PM

    Hi Greg,

    Below is the sequence of steps to process the 1099 (SAP term Withholding Tax) vendor invoice –

    1. Enter WT tax type, WT tax code and check mark ‘liable’ box in the vendor master.

    2. Enter only those relevant tax types and tax codes that are really applicable to that vendor master. Entering additional/non-relevant tax type and code in vendor master do not do any good instead it will increase additional work at the time of recording vendor invoice.

    3. At the time of recording vendor invoice, WT types and codes information moves from vendor master to the transaction screen and per configuration full invoice value will be assumed subject to 1099 information.

    4. If the vendor master has multiple lines of WT types and codes then at the time recording vendor invoice go to WT tab and enter $0.00 to those lines that are not applicable. If the full amount invoice is not subject to 1099 information but only part of the invoice amount then enter only that $ amount in the column WT base column. For example vendor invoice is entered for repayment of principle amount + accrued interest then enter only interest amount in appropriate WT line. Repayment of capital amount is not subject to 1099 reporting.

    5. If the invoice is entered with WT code that requires withhold back tax and pay to IRS the tax amount e.g. tax code D2 that has 31% back tax, then at the time payment of invoice, using t.code F110 or F-58, system will calculate back tax automatically. Invoice will be paid less by back tax. Back tax amount will be recorded in GL.

    6. Incase vendor invoice is to be paid though manual check or wire transfer (over the telephone and not system generated) and subsequent recording is to be done through t.code F.53 then calculate the WT manually and pay the remainder of the amount. On the open item screen of t.code F.53 payable will show net of back tax and on saving of document it will trigger the automatic entry to GL for back tax.

    7. Execute program RFWT0020 after step 8 to populate WT information to already posted/paid invoices and verify the correctness.

    8. Please work with program RFIDYYWT to generate electronic file for yearly IRS reporting. On this please stay with SAP delivered standard WT tax codes and type that will ease in 1099 reporting.

    Important OSS note in this are – 363650 and 649417.

    If this is usefull,please assign points.

    Thanks,

    Rau

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2008 at 12:28 AM

    Hello Laurie:

    Were you able to print 1099 forms for Vendor mailout with RFIDYYWT? We are trying to use this program to print 1099 form for vendors, but i keep getting no selections made. However, I can generate report with RSUK0030 - older program even though we are on ECC 6.0. Any ideas?

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  • Posted on Jan 18, 2008 at 08:54 PM

    If you are filing electronically be aware that the payee street addresses are being concatentated together without spaces (e.g. 54MAPLEST instead of 54 MAPLE ST). I beleive this is flaw in the DMEE format for 1099 (only options (atom handling per SAP terminology) are concatenate (w/o spaces) or fixed position assembly). The format also does not remove the special characters such as commas and periods in the various address strings. The IRS Pub 1220 states that these should be removed. I maintained DMEE format IDWTFILE_US_1099 and changed the conversion routines for these fields to CLU RM from CLU so that it would remove the special characters automatically.

    Another problem I found was when you try to create a electronic file for multiple cocodes that share a single filing TIN. RFIDYYWT will produce a non-IRS compliant file. Instead of combining the records by filing TIN it creates another T and F record envelope and appends it to the bottom the file. IRS will reject any files with multiple T and F records.

    I am trying to confirm with IRS that we can file multiple original files for the same TIN (i.e. run RFIDYYWT once per company code even though they share the same TIN).

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 18, 2008 at 09:21 PM

    Thank you for the response.

    Jason, let me know how it goes with the IRS. I had submitted a test file but they rejected. With your explanation, it makes sense why. Pleae share on what you find, and how you run the report. Thanks again.

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    • Former Member Jason Phillips

      Hi,

      Can you help me in sending dmee file to irs.

      we have same vendor in different company codes and we are using RFIDYYWT.

      its generating multiple set of records.

      Can i generate with single company code c1 with vendor v1 and

      company code c2 with vendor v2.and send the multiple files with the same vendor in both the files.

      Vendor has diff amount in both company codes.

      Please help me as soon as possible.

  • author's profile photo Former Member
    Former Member
    Posted on Jan 21, 2008 at 05:13 PM

    Guys:

    Any idea on how to print duplicates on each form? As the program prints 2 vendors on each page. How do we make it to print same vendor per page (2 1099s for same vendor). Thanks

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    • Former Member

      Mailo,

      We used cut sheet laser forms.

      With these you get sheets that are the copy to go to the IRS (red printing).

      Then Copy Bs and Copy Cs.

      Each is grouped with 2 of the same form to a page.

      You can either print all IRS copy, then all Copy Bs, then all Copy Cs or you can collate the forms and print them.

      To print multiple copies, enter the # of copies you want to print on the main form and do not pick print immediately.

      On the Print form that pops up, you can again enter the # of forms and choose Group (1-1-1, 2-2-2, etc) if you are going to Collate the forms.

      Since our forms came with all of each type together, we chose not to collate especially since we would have to uncollate them to get the red copies that go to the IRS.

      Instead we printed all reds (to "IRS"), all Bs (to company), then all Cs to be sent to the payee. I used the preview to know how many pages that I needed to print so that I would be sure to print the IRS copy only on the specified # of pages before it went to Copy B.

      You can also just print 1 copy to the Spooler and then reprint this over and over on each different type of form.

      Laurie

  • author's profile photo Former Member
    Former Member
    Posted on Jan 21, 2008 at 05:51 PM

    Thank you Laurie:

    Did you use "Supress Background" while printing? This is the first time I am doing this 1099 stuff, and kind of confused.

    Thanks,

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