Manage Suppliers

PAGE: 1
AP Basic Chapter 2
Section Objectives

At the end of this section, you should be able to:

• Enter new suppliers.
• Enter employees as suppliers.
• Perform supplier inquiry.
• Submit supplier reports.
• Perform supplier merges
• Understand supplier 1099 processing

PAGE: 2
Manage Suppliers: Overview
Set up suppliers to record information about individuals and companies
from whom you purchase goods and services. You can also enter
employees whom you reimburse for expense reports. You must define a
Supplier Master record for each Supplier you do business with. When you
enter a supplier that does business from multiple locations, you store
supplier information only once, and enter supplier sites for each location.
You can designate supplier sites as pay sites, purchasing sites, RFQ only
sites, or procurement card sites. For example, for a single supplier, you
can buy from several different sites and send payments to several different
sites. Oracle uses information you enter for suppliers and supplier sites to
enter default values when you later enter transactions for a supplier. Most
information you enter in the Suppliers window (Payment, Accounting,
Control and Tax) is used to enter defaults in the Supplier Sites window.

Master Supplier
(ABC Company)

Site Site Site

(Detroit) (Chicago) (Detroit)
PO Site Pay Site Pay and PO site

PAGE: 3
 Manage Suppliers: Overview
Trace the flow of Supplier default values:
Oracle Payables contains a hierarchy of options and defaults to expedite
and control data entry. Options and defaults set at one level automatically
cascade down to all lower levels in the hierarchy. If desired, you can
override options and defaults at lower levels in the hierarchy.

SUPPLIER
PAYMENT Enter Suppliers[Type
ACCOUNTING a quote from the document CONTROL TAX
or the summary of an interesting point.
You can position the text box anywhere in the document. Use the Text Box Tools tab to
Terms change the Liability
formattingFlexfield Hold Invoices
of the pull quote text box.] Tax Name
Payment Method Payment Flexfield Invoice Amount Limit Tax Group
Pay Group Distribution Set Hold Unmatched Invoices Tax Type

SUPPLIER SITE
PAYMENT ACCOUNTING CONTROL TAX

(Same as Supplier) (Same as Supplier) (Same as Supplier) (Same as Supplier)

INVOICE\PAYMENT

PAYMENT ACCOUNTING CONTROL TAX

(from Supplier Site) (From Supplier Site) (From Supplier Site) (From Supplier Site)

PAGE: 4
Manage Suppliers: Overview

Suppliers—Integration

Oracle
Projects
Oracle Human Oracle Cash
Resources Management

Oracle
Payables

Oracle Oracle
Purchasing General Ledger
Oracle
Assets

How Oracle Products Use Supplier Information:

Three Oracle financial applications use the Supplier windows: Oracle
Payables, Oracle Purchasing, and Oracle Assets. If you use more than one
of these products, supplier information is shared with the other products.
To enter a purchase order, Oracle Purchasing needs at least one purchasing
site. Oracle Purchasing uses supplier and supplier site information to enter
default values such as Freight Terms and Shipment Method for all of the
supplier's purchase orders. By defining receiving control options, you can
ensure that products you receive are within the tolerance you specify and
the guidelines you choose. Oracle Assets uses only the Supplier Name,
Supplier Number, and Inactive Date information from the Supplier
windows.

PAGE: 5
Enter Suppliers: Master Data
1. Navigate to the Suppliers window: Suppliers\Entry

HEADER REGION

Field Name Comments Required?

Supplier Name Enter unique Supplier Yes

Name. Use naming
convention that
minimizes risk of
duplicate supplier.

Supplier Number System generated Yes

Alternate Name Company No

Identification Number

Taxpayer ID Company Tax No

Identification Number
or employee SSN

Tax Registration Value Added Tax No

Number Registration number
for VAT supplier

PAGE: 6
Enter Suppliers: Master Data
Inactive On To prevent Invoice or No
Purchase Order entry
for this supplier after a
certain date

Enter additional supplier information via the appropriate Tabs of the

Supplier window. Much of this information will default to the Supplier
Site level.

GENERAL TAB

Field Name Comments Required?

Parent Supplier Name Name of suppliers No

parent enterprise if
franchise\subsidiary.
Parent enterprise must
also be entered as
supplier.

Number Parent Supplier No

number. System
generated

Customer Number Number your supplier No

uses to identify you.

PAGE: 7
AP Basic Chapter 2: Master Data
The Classification Tab is used to define the type of supplier and their
details:

CLASSIFICATION TAB

Field Name Comments Required?

Type Vendor type. Use to Yes

group suppliers for
reporting etc.

Employee Name Name of employee Yes – if Type is

Employee.

Employee Number Choose from list of Yes-if Type is

values if Type is Employee
Employee

One Time Check if vendor will No

only be used once. No
repeat business

SIC Standard Industry No

Code

Minority Owned Minority owned No

business. Choose from
list of values, if
applicable

Small Business Check if vendor meets No

small business criteria

Woman Owned Check if vendor meets No

woman owned criteria

PAGE: 8
AP Basic Chapter 2 Master Data

Use the Accounting Tab to enter default Accounting distribution

information. Supplier accounting values default to all new supplier sites
you enter for the supplier. Supplier site accounting values default to all
new invoices for the supplier site. You can override any accounting
defaults during supplier site entry and invoice entry.

ACCOUNTING TAB

Field Name Comments Required?

Distribution Set Default Distribution No

Set for all suppliers.
Defaults to all Invoices
for supplier.

Liability Default Liability No

account for all invoices
for supplier. System
Generated

Prepayment Default Prepayment No

account for all invoices
for supplier. System
Generated

Future Dated Payment If you use future dated No

payments, enter
account to use here

PAGE: 9
AP Basic Chapter 2 Master Data
Use the Control Tab to prevent payment of multiple supplier invoices by
applying holds to the supplier rather than to each individual invoice. You
can enable several types of supplier related holds:

CONTROL TAB

Field Name Comments Required?

Invoice Amount Limit Enter a max dollar No

amount allowable on a
particular invoice

Invoice Match Option Select to match No

supplier invoices to PO
or Receipts for PO
shipments.

Hold All Payments Check box to hold all No

payments to this
vendor for Payment
Batch.

Hold Unmatched Check Box to hold all No

Invoices invoices not matched
to purchase orders

Hold Unvalidated Check box to hold all No

Invoices invoices that are
currently not validated
for payment

Payment Hold Reason Reason you are No

applying a hold to an
Invoice.

PAGE: 10
AP Basic Chapter 2Master Data
Use the Payment Tab to enter supplier payment data. All supplier payment
values default to new supplier sites you enter. Supplier site values default
to invoices. You can override any payment defaults during supplier site
entry.

PAYMENT TAB

Field Name Comments Required?

Terms Determines Payment Yes

Schedule for Invoice.
Choose for list of
values

PayGroup PayGroup assigned to No

supplier. Choose from
list of values

Payment Priority Choose from list of No

values (1-99) which
represents priority of
payment

Invoice Currency USD NO

Payment Currency USD NO

Always Take Discount Check box if discount No

is always to be taken
for supplier invoice.

Exclude Freight From Check box if excluding No

Discount freight amount from
discount for invoice

Pay Alone Payables creates a No

separate payment for
each invoice.

Allow Interest Invoices Check Box to allow No

interest to be
calculated and paid on
invoices

PAGE: 11
Terms Date Basis Date Payables uses to Yes
calculate a schedule
payment for a supplier.

Pay Date Basis Determines pay date Yes

for a suppliers invoice.

Payment Method Method you most Yes

frequently use to pay
supplier invoices.

Use the Bank Accounts Tab to record supplier bank accounts that are used
for electronic payment transactions:

BANK ACCOUNTS TAB

Field Name Comments Required?

Bank Number Enter vendor’s bank No

number

Branch Enter vendor’s bank No

branch number

Account Name Enter vendor’s bank No

account name

Number Enter vendor’s bank No

account number

Check Digits Enter vendor’s check No

digits

Account Type Enter vendor’s bank No

account type

PAGE: 12
AP Basic Chapter 2Master Data
If you pay suppliers with electronic payments, use the EDI Tab to enter
the following information for your supplier:

EDI Tab

Field Name Comments Required?

Payment Method How the electronic No

payment will be made.

Payment Format Choose from list of No

values if Payment
Method is selected

Remittance Method How remittance advice No

is sent to payee.

Remittance Instruction Electronic payment No

instructions.

Transaction Handling EDI Transaction Code No

specifying actions to
be taken.

PAGE: 13
AP Basic Chapter 2Master Data
Enter Invoice related Tax information in the Invoice Tax Tab:

INVOICE TAX TAB

Field Name Comments Required?

Invoice Tax Code Represents Tax No

Charges on Invoice for
supplier.

Use Offset Taxes Enable this check box No

to record taxes on
invoices while
offsetting the tax
liability.

Calculation Level Level (Header, Line, No

Tax Code, None) in
which Payables
automatically
calculates taxes for
supplier

Rounding Rule Round up or down for No

automatically
calculated Tax
Amount. Choose from
pull down menu

Allow Override Check if calculation No

rule can be overridden

Distribution Amounts Check box if No

Include Tax distribution amounts
include tax

PAGE: 14
AP Basic Chapter 2Master Data
Use the Tax Reporting Tab to enter data for 1099 reportable suppliers:

TAX REPORTING TAB

Field Name Comments Required?

Federal Check box if income is No

reportable federally to
IRS.

Income Tax Type Select a default income No

tax type, which
defaults to Purchase
Order lines and
Invoice distributions
for 1099 reporting.

State Check box if income is No

state reportable

Reporting Site Reporting Site for

1099 processing

Reporting Name Enter if 1099

Reporting name is
different than supplier
name

Name Control Enter the first 4

characters of the
supplier’s last name.
This appears on the
1099 form.

Verification Date For suppliers taxpayer

ID.

Organization Type

PAGE: 15
AP Basic Chapter 2Master Data
Enter Supplier Purchasing Values via the Purchasing Tab. All Supplier
values default to new supplier sites you enter. Supplier site values default
to Purchase Orders and Purchasing Requisitions you create:

PURCHASING TAB

Field Name Comments Required?

Ship-To Location Location where No

supplier sends
shipments for
goods\services.

Bill-To Location Location where No

supplier sends invoice
for goods and services.

Ship Via Freight Carrier you use No

with a supplier.

FOB Free-on-Board code No

for a supplier.

Freight Terms Negotiated freight No

terms with a supplier

Create Debit Memo Payables will

from RTS Transaction automatically create
DM when you enter a
Return To Supplier in
Purchasing

Purchase Order Hold Check if purchase No

orders should be on
hold for this vendor

Purchasing Hold Reason you are No

Reason preventing approval of
purchase orders for
this supplier. User
Defined and must be
enabled

PAGE: 16
AP Basic Chapter 2Master Data

Use the Receiving Tab to enter Receiving values for a supplier. All
supplier-receiving values default to new purchase orders you enter for a
supplier. You can override any receiving defaults during Purchase Order
entry:

RECEIVING TAB

Field Name Comments Required?

Enforce Ship-To Determines if the Yes

Location receiving location
must be the same as
ship-to location.

Receipt Routing Default receipt No

routing that you
assign goods
(Direct Delivery,
Inspection
Required, Standard
Receipt)

Match Approval Specify 2-way, 3- Yes

Level way or 4-way
matching of
invoices, PO’s and
Receipts.

Qty Received Enter percentage No

Tolerance number of allowed
over shipment

Qty Received How to handle No

Exception receipts that exceed
Received Tolerance
(None, Warning,
Reject)

PAGE: 17
AP Basic Chapter 2Master Data

RECEIVING TAB

Field Name Comments Required?

Days Early Receipt Enter number of days No

Allowed to allow early receipt

Allow Substitute Check box to allow No

Receipts substitute receipts

Days Late Receipt Enter number of days No

Allowed to allow late receipt

Allow Unordered Check box to allow No

Receipts unordered receipts

Receipt Date How Purchasing No

Exception handles early or late
Receipts (None,
Warning, Reject)

PAGE: 18
Enter Suppliers: Sites
Identify the different sites of a supplier:

Supplier

Tokyo San Francisco Paris

Purchasing Site Purchasing Site Pay Site

RFQ Only Site Pay Site

Contacts Contacts Contacts

PAGE: 19
AP Basic Chapter 2

Enter Detailed Supplier Site Information

A Supplier Site is an address where your Supplier conducts business. Sites
are classified in Oracle Purchasing as Purchasing Sites, RFQ Only sites
and\or Pay sites. You cannot enter an Invoice for a supplier that has not
been defined with a Pay Site. In the General Tab, check the appropriate
Site Uses check boxes to indicate which specific business functions are
performed at each site. A Pay Site is a supplier site to which you send
payment for an invoice; you cannot enter an invoice for a supplier site that
is not defined as a pay site. A Purchasing Site is a supplier site from
which you create a purchase order for goods or services. An RFQ Only
Site is a supplier site from which you receive quotations; this should be
checked only if you do not allow entering purchase orders for a supplier
site. Primary Pay Site defines the Default pay site for the Supplier. The
Procurement Card checkbox indicates the site that accepts your
Procurement Card. Enter contact information specific to that site in the
Contacts Tab. This information is for your reference only and is not used
by the system. All other Supplier Site information defaults from your
Supplier information (General, Accounting, Control, Payment, Bank
Accounts, EDI, Invoice Tax, Tax Reporting, Purchasing Tabs). You can
modify this information if necessary.

PAGE: 20
AP Basic Chapter 2
Enter detailed supplier site information: Supply\Enter

• Select the Site button from the Supplier window:

Field Name Comments Required?

Site Name Displays existing Yes

supplier site name

Country Enter Country No

Address Enter street address Yes

City Enter city Yes

PAGE: 21
AP Basic Chapter 2

Field Name Comments Required?

State Enter state Yes

Postal Code Enter postal code Yes

Province Enter Province name No

County Enter County name No

Language Choose language from No

list of values

Inactive On Enter date vendor is No

inactive

Pay Site Check box if address is No

a pay site

Primary Pay Check box if address is

a primary pay site.

Purchasing Site Check box if address is No

a purchasing site

RFQ Site Only Check box if address is No

an RFQ site

Procurement Card Site accepts the credit No

card brands of your
procurement card

PAGE: 22
AP Basic Chapter 2
Use the Contacts Tab to enter supplier site contact information. This
information is for User reference only and is not used by the System:

CONTACT TAB

Field Name Comments Required?

LAST Contact last name Yes

First Contact first name No

M Contact Middle Initial No

Prefix Mr\Miss\Mrs No

Title Contacts job title No

Department Contacts Department No

Mail Stop Contact mail stop No

Inactive On Enter Date to No

inactivate contact

Telephone Enter contact No

Telephone number

Alternate Telephone Enter alternate number No

for the contact

Fax Enter contact FAX No

number

E-mail Enter contact email No

address

URL Enter contact home No

page

Alternate Contact Enter name for another No

Name supplier contact

PAGE: 23
Enter Suppliers: Employees
Enter an employee as a supplier so that you can pay the employee’s
expense reports. Enable the “Automatically Create Employee as Supplier”
Payables Option on the Expense Report tab to automatically enter an
employee as a supplier during Invoice Import.

Enter the employee manually as a supplier in the Suppliers window. In the

Classification Tab of the Suppliers window select ‘Employee’ for the
Supplier Type:

PAGE: 24
Enter Suppliers: Employee Expense Reports
Expense Reports are created in Oracle to capture and pay the business
related expenses of employees. You enter expense reports using the
‘Expense Reports’ window in Payables. You can also enter expense report
information in Oracle Internet Expenses (iExpenses) and Oracle Projects
and import expense report data into Payables. Payables automatically
saves the expense information in the Expense Report Interface tables
AP_Expense_Report_Headers_All and AP_Expense_Report_Lines_All
When you submit the Expense Report Import program, Payables creates
invoices from the expense reports. This process populates the Invoice
tables AP_Invoices_All and AP_Invoice_Distributions_All. You then
validate and pay these invoices like any other invoice. Before creating
expense reports, you must define all employees in Oracle. If you are using
Oracle HRMS, you enter your employees in the ‘People’ window. If you
are not using Oracle HRMS, setup your employees in the ‘Enter Person’
window in Oracle GL.
You can also define Expense Report Templates to model the different
types of expense reports (formats) your company uses. You can define
default values for expense items to simplify the Expense Report process.
Invoice\Entry\Expense\Report

PAGE: 25
Review Supplier Information: Online
You can find Suppliers by using the Find Suppliers window OR by
entering a query directly into the ‘Suppliers Window’:

In the Find Suppliers window you can enter a wide variety of search
criteria, including supplier name, supplier number, employee name,
supplier type, payment terms, parent supplier, and payment priority range.
You then choose the Find button to navigate to the Suppliers window,
where Payables displays all suppliers that match the Find criteria. From
the Suppliers window, you can review all information about a supplier.

Suppliers\Inquiry:

Field Name Comments Required?

Supplier Name Use first few letters of No

Vendor Name & ‘%’

Taxpayer Id List of values No

Inactive Dates List of values No

Supplier Type List of values No

PAGE: 26
AP Basic Chapter 2

Field Name Comments Required?

Parent Supplier No

Payment Priorities No

Reporting Name No

Payment Terms No

Pay Group No

Supplier Number No

Tax Registration No

One Time No

Employee Number No

Parent Number No

Federal No

Income Tax Type No

State No

PAGE: 27
Review Supplier Information: Submit Supplier
Reports
Submit reports to review supplier information, including invoice and
payment information.

Oracle Payables Supplier Reports

Report Name Description

Vendors Report Reviews supplier, supplier site, and supplier site contract
information.
Vendor Audit Report Reviews supplier names whose names are similar up to a
specified number of characters.
New Vendor/New Reviews new supplier and supplier sites.
Vendor Site Listing
Vendor Payment History Reviews the payment history, including void payments, for a
supplier or group of suppliers.
Vendor Paid Invoice Reviews the payment history, including discount and partial
History payment information, for a supplier or group of suppliers.

PAGE: 28
Merge Suppliers: Overview
The supplier merge process:

Identify Duplicate
Suppliers

Vendor Audit
Report Purchase Purchase
Order Order

Invoice Invoice
ABC Corp ABC
Corporation

Merge
Suppliers

Supplier Merge

Maintain
Audit Trail

Purchase
Order

Review Merge
Results
Invoice
ABC Corp
Vendor Merge Report
PO Headers Updates Report

PAGE: 29
Merge Suppliers: Overview
Merging Suppliers:

Although the AP system will not allow you to enter duplicate supplier
names, you may inadvertently define the same supplier by using two
different names. For example, you might enter ABC Corporation and ABC
Corp, or you might enter a contractor under his name and his company
name. You might also create duplicate suppliers if you import suppliers
from another accounts payable system. Use Supplier Merge to combine
two or more suppliers that you identify as duplicates. You can update
purchase orders and invoices for the old supplier to refer to the new
supplier. The Supplier Merge window also enables you to merge supplier
sites so that any sites assigned to an old supplier can be reassigned to the
new supplier. When you merge suppliers, you transfer invoices, purchase
orders, or both from one supplier and site to another supplier and site. You
can transfer to a new supplier and site unpaid invoices only or all invoices
(including paid and partially paid invoices). Oracle Payables will not
merge invoices if the merge would create a duplicate invoice for a
supplier. For best auditing results, transfer both paid and unpaid invoices
to a new supplier and site so you can identify duplicate payments easily.
Also, transfer both purchase orders and invoices to a new supplier and site
so all invoice and purchase order information refers to the same supplier.
After you have merged suppliers, Oracle Payables automatically prints the
Vendor Merge Report as an audit trail of your supplier merge activity.
The Vendor Merge Report also lists any duplicate invoices that it did not
merge. Research the duplicated invoice. You can then update the invoice
number if the invoice has not been paid or posted.

PAGE: 30
Merge Suppliers: Identify duplicate suppliers
Review records to identify duplicate suppliers and merge duplicate
suppliers.

Identify Duplicate Suppliers

Review supplier records periodically to prevent duplicate suppliers,
improve system performance, and provide accurate supplier reporting.
Use the Suppliers Report and the Suppliers Audit Report to help
identify duplicate suppliers.

PAGE: 31
AP Basic Chapter 2
To Merge duplicate suppliers navigate to the ‘Supplier Merge’ window:
Suppliers\Supplier Merge.

PAGE: 32
Merge Suppliers
Use the Supplier Merge window to merge suppliers.
1. Use the pop-up list to choose what invoices you want
copied to the new supplier (All\Unpaid\None).
2. Select the PO checkbox if you want to transfer all
purchase orders form the old supplier to the new
supplier.
3. Enter the Old Supplier Name.
4. Enter the old Supplier Site.

5. Select the Copy Site checkbox if you want to reassign the Old
Supplier Site to the New Supplier. During the merge, Oracle
Payables enters the merge date as the inactive date for the old
supplier site and creates a new site for the new supplier with
the information you selected to transfer.
6. Do not select the Copy Site check box if you want to merge
the Old Supplier site information with all existing New
Supplier Site information. You need to enter one of the New
Supplier’s existing sites in the Sites field. During the merge,
Oracle Payables enters the merge date as the inactive date for
the old supplier site and combines all of the information you
selected with the new supplier site information.
7. Choose Merge to submit a concurrent request to run the
Supplier Merge Program which transfers the information
from the Old Supplier to the New Supplier and also runs
the Purchase Order Header Updates Report and the
Vendor Merge Report.
8. You will get a message advising this action is irreversible.
9. Review the log file and reports after the request is
complete.

PAGE: 33
Merge Suppliers:
Field Name Comments Required?

Invoices Select which invoices Yes

to transfer to the new
supplier: All, Unpaid,
None.

PO Check this box if you No

want to transfer all
Purchase order
information to the new
supplier.

Name Enter the Supplier Yes

Name from which you
want to merge
information.

Site Enter the Supplier Site Yes

from which you want
to merge information.

Copy Site Select to perform copy No

VS. Merge (Copy will
keep the existing Site)

Name To Suppler Name Yes

Site To Supplier Site Name Yes, unless Copy Site

PAGE: 34
Process 1099 Suppliers:
Process 1099 suppliers to comply with Internal Revenue Service (IRS)
regulations that require accounts payable departments to report 1099
payment information for 1099 suppliers (Suppliers who perform contract
supplier services such as lawn service and building maintenance over
$600.00).

1099 steps:
1. Set up 1099 reporting.

2. Enter 1099 suppliers.

3. Create 1099 payment information.

4. Identify and resolve 1099 exceptions.

5. Submit 1099 reports.

PAGE: 35
Process 1099 Suppliers
Implement 1099 reporting using Oracle Payables.

Set Up 1099
Select Combined
Filing Program
Reporting
Payables Option

Define
Tax Regions
Define
Tax Reporting Enter 1099 Details
Entities for Suppliers

Enter Supplier

Nov 21, 1994

Pay to $500.00

Submit 1099 Enter and Pay 1099 Invoices

Reports
1096 Forms
1099 Forms
1099 Payments
1099 Tape

Identify and
Resolve 1099
Exceptions

1099 Vendor Exceptions Report

1099 Invoice Exceptions Report

PAGE: 36
Process 1099 Suppliers: Setups
Setting Up Oracle Payables for 1099 Reporting:

1) Define your tax reporting entities that produce 1099 reports.

2) To use combined federal and state 1099 filing, and to produce K-
Records and B-Records, select the Combined Filing Program Payables
option.
− K-Records: A summary record of all 1099 payments
made to a supplier for a single tax region that
participates in Combined Filing Program
− B-Records: A summary record of all 1099 payments
made to a supplier for one tax region.
3) If you use combined federal and state filing, define your tax regions.

PAGE: 37
Process 1099 Suppliers
Reporting Entities:

1) A Reporting Entity is any person or organization that has a unique

Tax Identification Number (TIN).
2) Enter a unique tax identification number (TIN) for each reporting
entity.
3) Define an unlimited number of reporting entities.
4) Assign each balancing segment to only one reporting entity.
5) Submit 1099 reports for each reporting entity.

PAGE: 38
AP Basic Chapter 2
• Navigate to the Reporting Entity window to define the reporting
entities that will produce 1099 reports:

• Setup\Tax\Reporting Entities.

In the Reporting Entity window, enter the Name, Location, optional

description and Tax ID Number of the Reporting Entity you are defining.

PAGE: 39
AP Basic Chapter 2

• Enable the Combined Filing Program Payables option. Navigate to

the Suppliers Tab of the Payables Option window:

• Setup\Options\Payables

• Select Supplier Region and check the ‘Combined Filing Program’

check box.

PAGE: 40
AP Basic Chapter 2
Use the ‘Income Tax Regions’ window to define tax regions and reporting
specifications for tax regions if participating in the Combined Filing
Program. Use the predefined region abbreviations, descriptions, and codes
for all U.S. states, the District of Columbia, and some U.S. territories.
Setup\Tax\Regions:

• Enter the region Abbreviation you are defining.

• Enter the region's Internal Revenue Service Code.
• Enter a Description for the region if it is not predefined.
• Enter for the Reporting Limit Amount the minimum
amount Payables uses to determine whether to report on a
supplier's payments. If you do not enter an amount, Payables
assumes the limit is zero.
• Select the Method that Payables uses to compare actual
payments to the Reporting Limit Amount:
o Compare Individually. Compare to the Reporting Limit
Amount the sum of payments for each 1099 MISC Income
Tax type.
o Compare Sum. Compare to the Reporting Limit Amount
the sum of payments for all 1099 MISC Income tax types.

PAGE: 41
AP Basic Chapter 2
o Same as Federal. Ignore the region Reporting Limit
Amount, and instead use the Federal reporting limit, which
Payables has predefined as $600.

PAGE: 42
AP Basic Chapter 2
• Identify a supplier as 1099 Federal and State reportable via the Tax
Reporting region Tab of the Suppliers window:
• Suppliers\Entry:
• Select the Tax Reporting region:

• Use this form to enter 1099 supplier information. Select the

Federal and State Reportable checkboxes. Select an Income
Tax Type. For example; this supplier is an income tax type, of
MISC7 which is Non-employee compensation.

• Enter a 1099 Reporting Name

PAGE: 43
Process 1099 Suppliers: Create 1099 Payment
information
Create 1099 Payments
• When you enter Invoices for 1099 Suppliers, enter an Income Tax
Type and Income Tax Region for appropriate Invoice
Distributions.
• Approve and pay invoices assigned with 1099 payment
information.

PAGE: 44
Process 1099 Suppliers: Identify and Resolve
1099 Exceptions:
Identify and Resolve 1099 Exceptions:

• Submit for each reporting entity the 1099 Exceptions Report to

identify the following exceptions:
o 1099 invoice distributions with no Income Tax Type
o 1099 invoice distributions with invalid or missing income
tax regions

• Submit the 1099 Supplier Exceptions Report to identify and

resolve exceptions including the following:
o Suppliers with null or invalid state abbreviations.
o Suppliers that will be flagged as incomplete in the 1099
Electronic Media report.
o Suppliers with missing or non-standard Tax Identification
Numbers.

PAGE: 45
Process 1099 Suppliers: Generate 1099
Reports:

Generate 1099 Reports:

• 1099 Forms. 1099 forms report on the total 1099 MISC
payments for a particular 1099 supplier. Generate 1099 forms for
each tax reporting entity in your organization. Submit to the
Internal Revenue Service for each 1099 supplier, and send a copy
to the supplier.
• 1096 Form. A 1096 form is a summary of each 1099 form type
you transmit on paper. Payables generates the report on a
preformatted form from the Internal Revenue Service. Submit to
the Internal Revenue Service for each 1099 MISC type paid
during the calendar year.
• 1099 Electronic Media. If you submit 250 or more 1099 forms,
the Internal Revenue Service requires you to file your 1099
payment information on magnetic media or electronically.
• Form 941. Send this form to the Internal Revenue Service to
report total supplier withholding for a quarter. Your Accounts
Payable department should create a manual payment for the total
amount withheld, and you should remit this amount and the 1096
Form to the Internal Revenue Service.
• 1099 Payments Report. Run this report to review 1099
payments by supplier.

PAGE: 46