Hi,
A vendor to whom an agency must report payment for goods or services to the Internal Revenue Service (IRS).
To flag a vendor in SAP as a 1099 vendor, two fields need to be populated.
1. On the Control screen of the vendor master, populate either "Tax Code 1" field with his social security number if his social security number is his tax id. or "Tax Code 2" field with his corporate tax id. if he has been issued a corporate tax id. Input either of the two in their correct format i.e. social security as xxx-xx-xxxx or corporate id as xx-xxxxxxx.
2. On the Accounting Info. screen, populate the "W.tax code" field under the "Withholding Tax" box with the value "07" if it is a US vendor or "42" if it is a foreign vendor.
These are the two fields that specify a vendor as being a 1099 vendor.
Any posts done before this changes were implemented will not show on 1099.
You will need to run program RFWT0020 to flag 1099 items retroactively.
...and/or you can change the "Document Change rules" for BSEG-QSSHB and BESG-QSSKZ for account type "K" so that you can change the Withholding tax code after the line item has been cleared (i.e. after entering the required information in the vendor master record as the user above has recommended) (Refer to OSS Note: 363650).
But if you use MIRO to post invoices, you might want to look at Note 482245 too...
Check the link - http://www.sap-img.com/financial/1099-misc.htm
<i><b>* Pls. assign points, if useful as promised :)</b></i>
regards,
Sridevi
Message was edited by:
Sridevi
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