1099 Credit Card Vendors

[brian_householder2]

We have vendors that are paid via the procurement card that are classified as 1099 vendors. As such new IRS rules state that even though the actual payment to the vendor comes from the bank, we are required to include the payment amounts in the 1099 form. Since these transactions were through the procurement card, the actual vendor related payments are not recorded in SAP.

Is there a method in SAP for handling vendors that are paid via credit card and do not have actual transactions in the system? Also, it is possible to "gross-up" the amount printed on a 1099 form for vendors that were paid directly from SAP (which is included on the 1099) but were also paid with a credit card in some instances?

We are using ECC 6.0 (no enhancement packs) and using basic Withholding (we are not using Extended functionality). For printing of the 1099 we are using transaction S_P00_07000134 Generic Withholding Tax Reporting.

[Former Member]

Brian

We have similar situation.

We create dummy invoices and payments which do not hit our financials. We have defined posting keys 39/29 and document types YW/YQ just for this and transactions are posted using special GL indicator. We have defined alternate recon account 800001 for actual recon a/c 200001. We psot dummy invoice to vendor which gets to 800001 and then when we make payment, it is reversed balancing the accounts. This account is not part of our financial reporting.

I am sure, there may be other ways too.

Thanks

Rajesh