1099 Questions

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

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?

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).

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.

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

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,