Updating Vendors for Form 1099-NEC

• August 24, 2020
• Kathy Jastrzebski

In our last blog post, we reviewed the 1099 filing change issued by the Department of Treasury. In that post, we mentioned there was more to come from Intacct on how this change will be released to existing companies in Release 3. Now that Release 3 is here, Intacct has added form 1099-NEC and box 1 as an option on Vendor setup. 

The 1099-MISC form box 7 option will remain in Intacct until R4 to prevent transaction posting errors, however, it will eventually be replaced entirely by the new form 1099-NEC box 1 so it’s important to get ahead of this change now.

In this post, we’ll walk through how to:

1. Update a vendor’s 1099 information manually or via import.
2. Move a vendor’s 1099-MISC box 7 balance to 1099-NEC box 1 via import.

Update a Vendor’s 1099 form and box manually (from the Vendor list screen):

• Go To: Accounts Payable > Vendors
• Search for your vendor by ID or Name
• Click: Edit > Additional Information tab > Form 1099

• Select the correct form name and default 1099 box
• Click Save on the Form 1099 Information with Default Box window

• Click Save again on the Vendor
• Select not to update previous transactions at this time and click Save.

Note: Be careful about selecting to update transactions already posted with the new 1099 information. This will update all bills for this vendor with the new box and form even if the line item was previously not selected as 1099-able (like in the case of reimbursed travel expenses). It’s recommended not to select the update previous transactions option.

Update a Vendor’s 1099 form and box via import (from the Vendor list screen):

Step 1: Create a list view for just 1099-MISC box 7 Vendors

• Go To: AP > Vendors > Click Manage Views > Create New View

• Select the following fields: Vendor ID, Vendor Name, Form 1099 Type, Form 1099 box 

• Filter for:

• Save the view as “1099-MISC Box 7 Vendors”

Step 2: Export the view and update the template

• From the Vendor list screen, switch to your new view.
• Click to Export this list screen as CSV for Import

• Edit your file to leave only 3 columns: VENDOR_ID, FORM1099TYPE, and FORM1099BOX – this is important so that you don’t accidentally update any other information on your vendors as a blank field Intacct will take as a request to overwrite existing data in a field.
• Update the type column to NEC and box to 1

• Save as CSV

Step 3: Import the template to update vendors

• From the Vendor list screen, click the import button at the top right.
• Select your CSV file and click import

Once this change is made, any new bills entered for vendors will default to the new form 1099-NEC box 1. In the next steps, we’ll move the balance in form 1099-MISC box 7 to the new form and box.

Move a Vendor’s 1099-MISC box 7 amount to 1099-NEC box 1 (via import)

Step 1: Run the 1099 Report in AP

To get the current 1099-MISC box 7 balance by Vendor, we’ll run the 1099 report.

• Go To: AP > 1096/1099 > 1099 reports

• Select the 1099 form type: Form 1099-MISC 
• Export this report to Excel. We’ll use this information to populate the import template.

Step 2: Populate and Import the Vendor 1099 Opening Balance Template

• Go To: Company > Import Data > download the Vendor 1099 Opening Balances template

• Populate the template with a negative amount for Form 1099-MISC box 7 and a positive amount for form 1099-NEC box 1 for each vendor and entity in the 1099 report you downloaded in the last step.

• Go To: Company > Import Data > click Import next to Vendor 1099 Opening Balances > select the year and your CSV file > Import

Step 3: Re-run the 1099 Report in AP to verify

• Select the 1099 form type: Form 1099-MISC and 1099-NEC

Note: You can certainly use the 1099 transaction update template as well, however, note that this method was not recommended here due to the fact that it updates non-1099-able line items as well. For more on that template read our preparing for 1099’s blog post.

What’s next?

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If you have any questions or would like assistance with this change, please reach out to your CLA Sage Intacct team.

Tags: 1099-NEC, Accounts Payable, New Releases and Updates | 5 Comments »