Retroactive 1099

SAP Gurus,
We realized that we did not have the 1099 vendors set-up properly in vendor master data, we went back and flgged them properly for 1099. I now need to run a retroactive report that gives me the results for those items that were entered prior to teh vendor master update.
I want to report 1099 only on those items that have been paid only. Can can i do that if I run report RFWt0020 in SE38? and are there any additional steps that I may be missing, i will then need to to run the actual forms does anyone have some steps
Thank You for you help

Corrected ran report RFWT0020 after vendor master was updated

Similar Messages

1099 Vendor ??

Is there a need to activate Withholding tax functionality when creating or reporting 1099 vendors if there is no tax withheld?
Can we just create the 1099 by filling the fields of tax numbers ? Is there anything else that is reqquired for creating 1099 vendor?

Hi
for details on this 1099 MISC reporting. SAP Note No. 363650 clearly explains how to configure this. As not everyone seems to be having access to this note, I thought of reproducing it here. At the end, vendor master maintenance for 1099 vendors also is covered, which is not a part of the SAP Note.
A) How to configure extended withholding tax to get correct 1099MISC reporting?
1) Define a type:Go to IMG path:-> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholdng Tax -> Calculation -> Withholding Tax Type -> Define Withholding Tax Type for Payment Posting
Define one withholding tax type for 1099 federal reporting. If state withholding tax needs to be withheld, a second withholding tax type needs to be created to allow two withholding tax postings for one vendor.
2) Define a code:
Go to IMG path: -> Financial Accounting Global Setting -> Withholding Tax -> Extended Withholdng Tax -> Calculation -> Withholding Tax Code -> Define Withholing Tax Code
Define one code for each box of the 1099MISC form where a base amount needs to be reported.
The codes must have the following numbering to get correct reporting:
TYPE CODE      DESCRIPTION                                              W/T PERCENTAGE
FE      01           Rents                                                                      0%
FE      02           Royalties                                                                 0%
FE      03           Other Income                                                          0%
FE      05           Fishing boat proceeds                                             0%
FE      06           Medical and health care payments                          0%
FE      07           Nonemployee compensation                                    0%
FE      08           Substitute payment in lieu of dividends                   0%
FE      09           Direct Sales to a buyer for resale                            0%
FE      10           Crop insurance proceeds                                         0%FE      3b or 13 Excess golden parachute                                        0%
FE      3c or 14 Gross proceeds to an attorney                                0%
FE      7b           Section 409A income                                                0%
FE      15           Section 409A deferrals                                             0%
Base amount, percentage to tax : 100 %
Postings, Post.indic. 1
Calculation, With/tax rate: leave blank
If tax must be withheld, a new code must be created starting with an F. Example F1 for rents. In this case fill the followig field as follows:
Calculation, With/tax rate: 30%
The codes for tax rate 30% should look as follows:
TYPE CODE DESCRIPTION                                     W/T PERCENTAGE
FE     F1       Rents                                                        30%
FE     F2       Royalties                                                   30%
FE     F3       Other Income                                            30%
FE     F5       Fishing boat proceeds                               30%
FE     F6       Medical and health care payments            30%
FE     F7       Nonemployee compensation                      30%
FE     F8       Substitute payment in lieu of dividends     30%
FE     F9       Direct Sales to a buyer for resale              30%
FE     F0       Crop insurance proceeds                           30%
FE     Fb       Excess golden parachute                           30%
FE     Fc       Gross proceeds to an attorney                   30%
FE     Fd       Section 409A deferrals                               30%
FE     Fe       Section 409A inocme                                   30%
If state tax must be withheld, assign a second type to the company code as follows:
TYPE CODE DESCRIPTION             W/T PERCENTAGE
ST     16      State tax withheld       depending on state
3) Assign Withholding Tax Types to Company Code:
Go to IMG path: -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Withholding Tax -> Company Code -> Assign Witholding Tax Types to Company Code
Switch on: Vendor data, With/tax agent and fill the validity period.
4) Assign an Account:
Go to IMG path: -> Financial Accounting -> Financial Accounting Global Settings -> Withholding Tax -> Extended Wtihholding Tax -> Postings -> Account for Withholding Tax -> Define Accounts for Withholding Tax to be paid over
B) How to configure classical withholding tax for 1099MISC reporting
1) Define a code
Go to IMG path: -> Financial Accounting Global Settings -> Withholding Tax -> Withholding Tax -> Calculation -> Maintain Tax Codes
Define one code for each box of the 1099MISC form where a base amount needs to be reported.
The codes must have the following numbering to get correct reporting (2001 reporting):
CODE       DESCRIPTION
01            Rents
02            Royalties
03            Other Income
05            Fishing Boat Proceeds
06            Medical and health care payments
07            Nonemployee compensation
08            Substitute payments in lieu of dividends or interest
09            Direct Sales to a buyer for resale
10            Crop Insurance proceeds
13 or 3B   Excess Golden parachute
14 or 3c   Gross proceeds paid to an attorney
7B            Section 409A income
15            Section 409A deferrals
Percentage subject to tax : 100 %
Mark box :Posting with the payment.
If tax must be withheld, a new code must be created starting with an F, Example F1 for Rents. In this case fill the fields as follows:
CODE DESCRIPTIOn
F1       Rents
F2       Royalties
F3       Other Income
F5       Fishing boat proceeds
F6       Medical and health care payments
F7       Nonemployee compensation
F8       Substitute payment in lieu of dividends
F9       Direct Sales to a buyer for resale
F0       Crop Insurance Proceeds
FB       Excess golden parachute
FC       Gross proceeds to an attorney
FD       Section 409A deferrals
FE       Section 409A income
Percentage subject to tax: 100%
Withholding tax rate: 30% (or valid rate for reporting year)
Mark box: Posting with payment
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 vendor's Social Security Number or ITIN if it is an individual or "Tax Code 2" field with his corporate tax ID for corporate vendors. The format for SSN/ITIN is xxx-xx-xxxx and corporate tax ID is xx-xxxxxxx.
2. On the Accounting Info. screen, populate the "W.tax code" field under the "Withholding Tax" box.
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.
If the withholding tax base amount and/or the withholding tax code needs to be changed after an invoice has been cleared please follow the procedure below:
1) Change Document Change Rules
     Go to IMG -> Financial Accounting Global Settings -> Document -> Line Item -> Document Change Rules
     Go to account Type K field name BSEG-QSSHB and click off Line item not cleared.
     Go to account Type K field name BSEG-QSSKZ and click off Line item not cleared.
   2) Change Document Change Rules for extended withholding tax
      Go to IMG -> Financial Accounting Global Settings -> Line Item -> Document Change Rules
      Go to account Type K field name
      Go to field WITH_ITEM-WT_QSSHB and click on 'Field can be changed'
      Go to field WITH_ITEM-WT_WITHCD and click on 'Field can be changed'
   3) Change Witholding Tax Code
      Go to IMG -> Financial Accounting Global Settings -> Withholding Tax -> Withholding Tax -> Calculation -> Check witholding tax codes
      Go to the respective withholding tax code and click off Posting with payment.
   4) Change the payment document of the invoice which needs to be changed.
   5) Your changed documents will be selected with report RFW1099M
Please reward points if helpful!!!
Thanks

1099 Reporting doubts

Hi all,
I am doing 1099 coniguration for an US Company. I have the following doubts. Pl help me with your inputs.
1. What is to be taken as reporting base for 1099 - Invoice or payment (withholding tax type for invoice posting or payment posting)
2. How will the Vendor who gives tax exemption certificate be reflected in the Report.
Thanks
Sri.

Hi,
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...
In SAP v40b, the new 1099 report is RFW1099M. It is a neat report since it merges all the three reports that are listed in the AP info system under the withholding tax.
Regards,
Satish Muvva.

1099 Vendors

Please try to understand my question here. I am not asking where is the integration point between AP and payroll, I know it is the personnel number entered in vendor master.
Here is the scenario. Payroll in SAP maintains the withholding taxes calculation for 1099 vendors. Some 1099 vendors are paid through payroll, while some outside SAP through some external AP software. If I run the 1099 report in AP in SAP , will it pick up the 1099 vendors (since the withholding tax calculation is doen in payroll)??? Do I need to do any configuration in Withholding taxes under "Financial Accounting Global settins" in SPRO or not.
Second question, do I have to activate withholding taxes in this scenario or not. If yes, should it be activated after conversion or before.
Also during conversion, do I need to bring over the values of withholding tax codes like 7, 16 etc in vendor master or not. Do I need to give them in LSMW mapping of conversion of vendor master or not???
Thanx

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

1099 Reporting

How to configure backup withholding in SAP for 1099 reporting ?
There are IRS requirements to withhold @ 28% in case of TIN Mismatch , after 30 days of sending firs B-notice etc.
I would also like to know where can we find detais on what all tax codes to be cofigured for different US States.

Dear,
In order to use 1099 MISC reporting is something that needs to be configured or set up in the vendor master records? I am trying to run the report and I don't get anything.
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...
regards

Error in Retroactive wages in payslip and Payroll register

Dear Consultants,
One of my client facing error while retroactive wage display in payslip and as well as Payroll register, when the employee is having any retro arrears that time the total arrears are coming as "Stat.net subs.adjustment" but client want the break up of this total arrear amount.
sample payslip :
Then I have created a new Payroll remuneration statement through PC00_M40_CEDT as below
After doing this changes the in the payslip I am able to see the retro amount break up in pay slip, but the retro amount is not calculated to /101 gross amount, and PF employee contribution is coming 3 times. can any one let me now what are the exact requirement for this issue ?
When I checked in RT table after running with the new paylip varient there are only two PF employee contribytions are there 1 is /3F1 calculating for current month earnings, and /ZF5 calculating for retro amount. there is no other employee PF deductions are there then form where this 3rd PF is coming in payslip? please do needful.
Thanks
Naresh

Dear Praneeth,
Do I need to create new wage types for arrears amount? and am giving the currently using PCRs
IN42, ZN43 (IN43), IN44. kindly help me in changing of this PCRs.
PCR (currently using in Payroll schema):
IN42:
PCR ZN43:
PCR IN44:
This are the PCRs IN42, ZN43 (IN43), IN44 using in production payroll Schema.
please do needful.
Thanks Regards,
Naresh

1099 information for mid year go live

Hello guys,
How to capture the payments made to 1099 vendors until go live in SAP. At go live we only load open items. How do we integrate payments from Legacy (until go live) and payments from SAP (after go live) to generate the 1099s from SAP system?
Regards
Madhu

Dear Atin,
For table T558B use format :-
Client
Personnel Number
Sequential number for payroll period
Payroll type
Payroll Identifier
Pay date for payroll result
Period Parameters
Payroll Year
Payroll Period
Start date of payroll period (FOR period)
End of payroll period (for-period)
Reason for Off-Cycle Payroll
Sequence Number
For Table T558C use format :
Client
Personnel Number
Sequence Number
Country grouping
Wage type
Key date
Rate
Number
Amount
Hope this helps.
Kindly reward if useful.
Regards & Thanks,
Darshan Mulmule

Vendor tax id change impacting 1099 reporting

Hi
Our business creates new vendors when there is a tax id change for the same vendor because they want the 1099 report to provide the tax id number associated with a certain payment document in 1099 report.
This causes duplicate vendor numbers to be created for the SAME vendor. They truly do not want to be creating duplicate vendors and so
would like to know how they can get 1099 report to provide the tax ids associated with a certain payment.
How do the other companies handle this? What do you do when a certain vendor has had a TAX ID change?
Thanks
Depa

Ok, I Found it. We have to customize it. Taxes are reported at Operating Unit level only.

1099 report for Customers

Hi,
We have a requriement to report 1099 on Rebate Customers, planning to use standard SAP report S_P00_07000134 (RFIDYYWT)
Have already modified the existing process type US_1099 with output group US1 to include both Vendor and Customer payments. But, the reprot is not pulling the Customer payments yet.
Also tried to copy the old process type and created the new one just for the customers alone. This time report is providing the output for customers but "Country specific Slection" is missing in Mandatory selection.
Can anybody suggest what am I missing in the configuration or are there any OSS note for this ??
Thansk in advance
Uma

HI,
Please refer the below note.
1549310 Belgium Customer Rebate reporting
178824 Withholding tax from SD for countries other than
Regards
Madhu M
Edited by: M Madhu on Nov 30, 2011 11:31 PM

1099 Reporting for Multiple Operating Units using same Tax Id Number

Everyone!!!!
We have multiple operating units using the same tax id number. We need to use the 1099 standard reports. I see that in the 1099 standard programs, one of the necessary parameters is Tax Entity Id which is again at operating unit level.
As 1099 reports need to be sent at the Tax Id Number not at operating unit level, is there any way to use the starndard program and do this, or will we have to customize it?
We are on 11.5.10.2 if it matters. Let me know if you need more information.

Ok, I Found it. We have to customize it. Taxes are reported at Operating Unit level only.

Posting to Accounting: Retroactive Posting after a change in the GL account

Hello all,
i would like to ask you about a problem that we face in a live system throught the integration HR-FI. We have already run live posting to accounting until the end of November. But, the client wants us to change the account of a wage type. We have created a new symbolic account because the new account is an expense account whereas the previous account was a balance sheet account. We have used also the user exit in RPCIPE00 as we have different employee groupings in our system. The problem is that when we run posting to accounting for December and there is retroactive calculation the system debit/credit again the old wage type again without having results in December for this wage type.
Customizing :
01.2010-11.2010 DEBIT : X1(BALANCE SHEET)
                            CREDIT: Z1
122010-12.9999 DEBIT : X2(EXPENSE ACCOUNT)
                            CREDIT: Z1
Example:
11.2010 -> Payroll calculation for WT01:100 EUROS. Posting of this WT01: Debit : X1 (100EUROS) Account ,Credit : Z1 Account ((100EUROS)
12.2010 -> Retroactive calculation for november for other wage types. Not WT01. But in the posting to accounting for WT01 there is debit/credit. Note: After 01.12 we have the change in the posting customizing of this WT01.
              DEBIT                CREDIT
X1                                  (100EUROS)
Z1      (100EUROS)       (100EUROS)
X2      (100EUROS)
How can i stop the retroactive posting that takes place after the change? This wage type WT01 SHOULD NOT be posted in December.
I am looking forward to your feedback.
Thank you in advance.
Sissi

Thank you for your quick response.
I have already delimited Wage Type WT01 and used the new symbolic account:
Customizing :
01.2010-11.2010       DEBIT : X100 Symbolic (BALANCE SHEET)
                                  CREDIT: Z100 Symbolic
12.2010-12.9999        DEBIT : X200 Symbolic(EXPENSE ACCOUNT)
                                  CREDIT: Z100 Symbolic
FI: X100 symbolic Linked to X1 ACCOUNT
     X200 symbolic Linked to X2 ACCOUNT(NEW ONE)
     Z100 symbolic Linked to Z1 Account
The problem is that after posting for December i have 100 euros as debit in Account X2 (the new account) and 100 euros in the old account X1 as credit. IN Z1 account i have no problem as the result is zeroed. According to the customer, they should not have these amounts in X1,X2 accounts as there is no retro-calculation for this specific WType.
Accounts                  DEBIT                     CREDIT
X1   :                                <->                   (100EUROS as CREDIT)
Z1   :                    (100EUROS as DEBIT)               (100EUROS as CREDIT)
X2   :                   (100EUROS as DEBIT)                         <->
I hope the schema above will depict how the posting is performed after the change in account of the wage type.
So, you suggest that this cannot be ceased as the system works in this way?
Thank you a lot.
Sissy.

Transfer payable from one 1099 vendor to another?

Hi all,
We're trying to put SAP's 1099 functionality in place for 2011 (first time we're using it). We have it working about 99% correctly, but there's one scenario where the system isn't calculating the vendors' base amount as we would expect it to.
The scenario is that a vendor invoice is created for the wrong vendor (say vendor A) and needs to be 'transferred' to the correct vendor (say vendor B). Our finance folks are currently correcting the situation by posting an accounting document (doc type AB) crediting vendor B via posting key 31 (Invoice) and debiting vendor A via posting key 28 (Payment Clearing).
When the 1099 process is run, the invoice amount is now included on vendor B's 1099, as expected, however it hasn't been cleared off of vendor A's 1099. In other words, the invoice is being included on both vendors' 1099's.
Does anyone know how we can resolve this issue? IIs there a different/better way to transfer the invoice from one vendor to another? Or is there something I need to chance in how we are running the 1099 process to make sure that both sides of the transfer posting are picked up?
Thanks in advance for any guidance.
Allison

No.
You can try contacting itunes support to see if they can do this, not sure.
http://www.apple.com/support/itunes

Issue in 1099 IRS file

Hi All,
1099 IRS tax files are generated by organizations to report financial information to the Internal Revenue Service (IRS) of the United States. They are used to report income and calculate taxes to be paid in United States. In SAP it is done using report (S_P00_07000134) for 1099 form and IRS file. In the IRS file which we are generating we are -
u2022Unable to create the IRS file for multiple companies in the correct format - only 1 "T" record for entire file, and each "A" record needs to have the correct TIN and Company Name for each individual company.
u2022When filing for multiple companies, there should only be 1 "F" record at the very bottom which contains a total count of all the "A" records and the "B" records.
If anyone has faced similar issue with IRS file generation, please let me know.
Regards,
Ajay

Hi Puneeth,
Thank for your reply.
I am using below format as you said even then we are faicng issuue in generating XML
<xsd:complexType name="REC030">
<xsd:sequence>
<xsd:element name="C1" type="xsd:string" nxsd:style="fixedLength" nxsd:length="25" />
<xsd:element name="C2" type="xsd:string" nxsd:style="fixedLength" nxsd:length="22" />
<xsd:element name="C3" type="xsd:string" nxsd:style="fixedLength" nxsd:length="45" />
<xsd:element name="C4" type="xsd:string" nxsd:style="fixedLength" nxsd:length="64" />
<xsd:element name="C5" type="xsd:decimal" nxsd:style="fixedLength" nxsd:length="38" />
<xsd:element name="C6" type="xsd:decimal" nxsd:style="fixedLength" nxsd:length="30" />
<xsd:element name="C7" type="xsd:decimal" nxsd:style="fixedLength" nxsd:length="36" />
<xsd:element name="C8" type="xsd:string" nxsd:style="fixedLength" nxsd:length="82" />
<xsd:element name="C9" type="xsd:string" nxsd:style="terminated" nxsd:terminatedBy="${eol}" />
</xsd:sequence>
</xsd:complexType>
Regards,
Radhika

1099 payments are not combined for same vendor payments

Hi All
I have a question on 1099 reporting.
My issue is that we are running the report in transaction code s_p00_07000134 separately by company code because all these company codes have separate tax ids except few of them which have same tax ids. My client wants to run them (ccodes with same tax ids) together and if there is a same vendor on these company codes . They are being shown on the report separately and the 1099 forms are printing separately.
Cant the system combine the payments for same vendors under different company codes with same tax ids run together/
Please help me..

Hello,
Did you get the answer for this problem? Could you please explain how did you resolve it?
Thanks

Can a 1099 be manually created without reference to an AP Document ?

Our AP department cut a cheque against a vendor id which included the names of two vendors in the description. They added the second name to the existing vendor in order to meet a requirement that the settlement cheque be made out to both parties.
E.G.:> Vendor 100 = John Dow & Jane Smith. The tax-id/SSN for vendor 100 belongs to John Dow.
A seperate vendor code exists for attorney Jane Smith. E.G.> Vendor 200 = Jane Smith. And the tax-id/SSN for vendor 200 belongs to Jane Smith.
We can generate the 1099 for this payment document which references vendor 100 and John Dow's tax-id. Can another 1099 be created against the same payment for vendor 200? And/or is there a manual way to create a 1099 without reference to an AP document?

The solution we used to create a second 1099 was as follows:
1: Post an AP item to the 2nd Vendor for the amount that you want to report - FB60.
-Credit Vendor Account
-Debit Any account to clear with - We used petty cash
2: Use the F-51 to Clear
-Doc type ZV
-Credit: The account you used to clear with
-Debit: Select the open item for the vendor
This will give you a payment document for the vendor for the amount you wish, but nothing paid to the vendor.

Retroactive 1099

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