Prepare and Process 1099s

Instructions for preparing and processing 1099s.

As of December 2021, you must use Aatrix to print and/or eFile 1099s. If you do not already have Aatrix installed, do the following:

Accounts Payable provides options to accumulate data and print IRS Form 1099. Although there are multiple types of 1099 forms, Vista™ by Viewpoint provides the ability to print only the 1099 Miscellaneous Income, Dividend & Distributions, and Interest Income forms.

Complete the following steps for vendor payments that are to be reported on 1099 forms:

  1. Set up valid 1099 types (in the AP 1099 Types form). If you are accumulating amounts for filing purposes, then you must use onr or more of the following 1099 types:
    • "MISC" (Miscellaneous Income)

    • "INT" (Interest Income)

    • "NEC" (Non-employee Compensation)

    • "DIV" (Dividends & Distributions)

  2. In the AP Vendors form, for each vendor subject to 1099 reporting:
    1. Select the Subject to 1099 reporting check box.
      If you are unsure whether the vendor is subject to 1099 reporting, it is best to select the check box. Although transactions for the vendor will automatically be flagged to be included in the vendor's 1099 totals, you can override the default as necessary.
    2. In the 1099 Type field, enter the 1099 form to use. You can override the default at the transaction level as needed.
    3. If you want to print 1099s for the vendor even when the vendor's totals are less than the 'Minimum Payment Amount' specified during processing/printing, select the Include in 1099 Processing (Ignore Minimum) check box.
  3. As invoices are processed throughout the year, the 1099 Info section in the AP Transaction Entry form (Payment Overrides tab) populates with the 1099 information defined for the vendor in AP Vendors. You may override the 1099 information for any invoice as needed. For example, if you clear the Include in 1099 Totals check box on a transaction to purchase materials, the related invoice amount would not be subject to 1099 reporting.
  4. At calendar year end, print the AP 1099 Report (summarized or detailed) to obtain a list of each vendor’s YTD 1099 amount, and verify the following:
    1. the YTD 1099 amounts are accurate (if you printed the summarized version of this report, you may find it necessary to print this report in detail to see if specific transactions are included/excluded).
    2. the vendor’s address is present and correct.
    3. the vendor’s Tax ID#, 1099 Type, and 1099 Box are present and correct. Remember, if you are accumulating amounts for filing purposes, only totals accumulated under 1099 types MISC, INT, NEC, or DIV are included.
    Note: This report only shows vendors with 1099 amounts equal to or greater than the specified Minimum Payment Amount, or vendors with 1099 amounts less than the minimum amount where the Include in 1099 Processing (Ignore Minimum) check box is selected in the AP Vendors form. (The 'minimum amount' restriction does not apply to dividend amounts because dividends do not have a minimum amount and are always included in this report.) You can review all vendors with totals less than the minimum amount, regardless of the Include in 1099 Processing (Ignore Minimum) setting, using the "AP 1099 Vendors Less Than Minimum" report.
  5. If necessary, for any paid or partially paid transaction, change the 1099 box in the AP 1099 Edit Transactions form so the amount is either included or excluded from the vendor’s YTD 1099 amount.
    Note: It is possible to change a vendor’s 1099 YTD amount in the AP 1099 Processing form. However, changing the amount there means you will not have an accurate audit trail to support the YTD 1099 amount.
  6. If you need to report in more than one box on the 1099, make those entries in the AP 1099 Processing form. For example, California requires withholding to be reported in Box 16.
  7. If needed, add or update vendor information (such as payment address information or Tax ID#) in the AP Vendors form.
  8. If you made changes to 1099 amounts, box numbers, or other values, then you may want to run the AP 1099 Report again to double-check information and have a final copy of the vendor information that will print on the 1099 forms.
  9. When you are ready to print and/or eFile 1099s, launch Aatrix via the AP 1099 Processing form, by clicking Tasks > Download, which opens the AP 1099 Download form. Then enter the required information, click Launch Aatrix, and follow the prompts in the Aatrix wizard to complete processing.
    Note: Aatrix does not send data back to Vista. If you need to make corrections after you submit your 1099s to the taxing authority, you must do so directly in Aatrix. For more information, see Make Corrections to Regulatory Filings.
Once you have completed printing and eFiling 1099s and you no longer need the year’s 1099 amounts, use the Annual 1099 Totals option in the AP Purge form to purge these YTD totals.