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.

Similar Messages

1099M - 2008 Legal changes for 1099 Reporting

Hello experts,
I have been using program RFW1099M via Sapscript form to generate the 1099M. Based on note 1279366 on 2008 legal changes for 1099 reporting, sap provided the 1099MISC form in Smartforms.
I don't use Smartforms. Is there any sap 1099M program provided using Smartforms ?
The sapscript form i currently have looks the same as the 2008 1099Misc. So I don't know why i have to use Smartforms. Pls let me know what you think ?
Thanks
Joyce

Question is closed.

1099 Reports(US Withholding tax)

Hi,
Plz help me how to Configure
1099 Reports(US Withholding tax)
Regards,
Padma

Padma,
Configuring 1099 Reporting for US in SAP is pretty much a standard process. However, not everyone I know chooses to use the standard reporting tool inside SAP to generate the extracts that are to be sent to the US Tax Authorities (IRS) for tax reporting purposes.
Since you've not mentioned exactly which format for 1099 it is that you're looking for, I'll assume you are looking for 1099MISC.
Rather than giving you all the steps here, I'll point you to an OSS Note (363650 - Withholding Tax Configuration for 1099MISC). This Note contains the customizing steps for extended withholding tax configuration for US (1099 Reporting).
Of course, once you're done with the config, you'll want to create the tax return extracts. Depending on which version of SAP, you might want to use program RFW1099M (if you're on a version below 4.7) or RFIDYYWT (if you're using version 4.7 or anything above).
This is the reporting tool for generic withholding tax, which SAP recommends to be used for 4.7 and above.
However, be sure to apply all the outstanding OSS Notes applicable for this report, as there are legal changes (which are announced by IRS from time to time) that need to be updated into the SAP system each year.
There are other components involved, like SAPScript form, DMEE engine config for the tax report output, etc. which I'll let you explore on your own.
Happy Learning!
P.S.: Just to get you started in your search for 1099INT, you can start with Note 561568 (1099INT Reporting).
Remember to assign points if found useful.
Regards
Gulshan

1099 Report for OTV - Classic Withholding Tax

Hello Members,
We run on SAP ERP 6.0 EHP6 and use the classic withholding tax functionality.
Wondering what the rest of the world with classic setup is using for 1099-MISC reporting for one time vendors ?
Currently we follow a cumbersome process of pulling FBL1N report (which doesn't have otv address information), and then FCHN to get vendor address details. With this we change a vendor and update the master data and payment document withholding information in QAS to print the paper form from QAS.
I read a few of the forums and the idea I get is, if the vendor is to be 1099 reported, it should be a standard vendor.
Questions:
1) Any standard functionality available within classic setup for 1099 MISC reporting of OTV ?
2) Does using extended functionality make OTV reporting any better
3) Any best practices that you are following which you think is better than ours ?
Regards,
Ani

Hi,
See SAP Note-802033
Raj

How to exempt vendor from 1099 reporting

Hi All,
On the vendor master, Accounting information tab, we have fields "Exemption number,Valid until and exemption authority" with respect to withholding tax. As per my understanding if we enter these fields, then that particular vendor should not be considered for 1099. However these fields are not having any impact on my 1099 reports. I am running standard report S_ALR_87012143 for validation. Can anyone guide me the relevance of these fields and how to use them correctly in business scenario? Also let me know how to exempt a vendor from 1099 reporting.

Hi - The exemtion number is entered so that the system does not withhold tax amount (eg: 30% or so) when the payment is made. I think the vendor will still appear on the 1099 report. You can use a different Withholding Tax type for these vendors and exclude the WT type when you run the 1099s.

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.

Vendor master data change confirmation -Report Y_CD1_39000398

Hello All,
In report Y_CD1_39000398 we can see the confirmation pending for the Vendor master data changs. There are some entries which are pending since last 5 years becasue the chagnes are rejected. Is there is any possibility to remove this so that in this report we can get only relevant entries
Thanks & regards,
Prashant

Hi,
I dont think it is the standard report. I think its a developed one as it is starting with Y. If so, then co-ordinate with your abaper and do the necessary changes to get the right result.

FM for changing vendor Tax information

Hello,
is there any FM for changing vendor Tax information?
Thanks,
Moshe

read data with VENDOR_READ and update desired date with VENDOR_UPDATE

1099 report- program RFTW0010/RFTW0020

Hello All
I am facing some issues with the 1099 reporting. We have many vendors that were setup incorrectly as 1099 vendors. A lot of documents have been posted to them. I deleted the withholding tax information and ran the correction program RFTW0010 and then ran the 1099 report S_P00_07000134 - Generic Withholding Tax Reporting but this report still shows all the documents already posted.
Looks like the only way for me to fix this, is to go and remove the withholding tax information from each line. This is not possible. Is there a solution for this? what is the use of these programs? they only update the with WITH_TAX tables and fix a vendor going forward right?
Does SAP not have a solution for this?
When do I run the program RFTW0010 vs RFTW0020.

Hi,
The 2 reports mentioned by you viz., RFTW0010/RFTW0020 are to be used when you are changing the vendor master and then wants to correct the line items posted to be in sink with the changed vendor master.
I guess, in your instant case also, the report RFTW0020 is relevant, is you have changed the code and report RFTW0010 is relevant is you have changed the WT Type.
Hope this helps.
Vikas.

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.

Duplicate invoices in 1099 report

Hello All
When I run the S_P00_07000134 - Generic Withholding Tax Reporting report I am seeing invoices show up twice for a vendor. This vendor had its tax region code changed from IL to NY and now I see the amounts showing up once under IL and again under NY which is making my total double.
Did anyone face this issue? How do I fix it? I already ran the correction program

Hi,
Vendor address and withholding tax code should be maintained as per the nature of the vendor. 1099 Vendors will be classified based on Vendor Master containing fields (Tax Number 1 or 2 and Withholding Tax Code). In US a taxpayer identification number (TIN) uniquely identifies recipients whose income is connected with a trade or business. In this context please note that if the business does not know the TIN of the vendor then they can request it from the IRS (internal Revenue Services which is a regulatory body ) using form W-9, Request for Taxpayer Identification Number and Certification. With this form, the vendor also certifies to the company that the number furnished is correct. The taxpayer identification number is a social security number (SSN) and is filled up in Tax number 1 field of Account control screen of vendor master if the vendor concerned is an individual, and an employer identification number (EIN) for corporate in all other cases and is filled up in Tax number 2 field of account control screen of vendor master.
Now the question remains which all vendors actually qualify under 1099 category? Generally that would be a vendor of goods and /or services that is not incorporated (such as a landlord, independent contractor) to whom your business has made payments greater than $600 (total, for the applicable tax year). In addition, gross proceeds to attorneys and cash payments for fish and fishing boat proceeds and some other specified categories of payments are reportable. If your vendor is a 1099 vendor you have to issue them (and report to the IRS) a separate 1099 slip. It applies primarily to vendors who provide "services" and excludes corporations, unless the service provided is for medical or health care services or attorneys fees. Vendors who are service providers and are not incorporated should therefore indicate that they are 1099 vendors and provide the requested information. The sole purpose of this 1099 reporting is to ensure that the IRS gets income information from an independent contractor and they do not evade paying taxes. The IRS is apparently tracking certain business transactions as well, such as gross attorney proceeds and payments for fish and fishing boat proceeds.

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

Urgent !!!!!!! 1099 reporting

Hello Experts,
I am having a problem in 1099 Vendor reporting using the program "RFKQSU20". I was trying to get the list of taxable and non-taxable 1099 amounts by vendor. I was getting a report which has no data in that, even though I posted a vendor invoice (FB60) for a 1099 vendor with the full invoice amount as "W.tax base" and did the vendor payment.
Any Help in this regard is duly rewarded and appreciated.
Regards,
Sriram
null

Hi Sriram
You need to maintain the Country code in vendor master.
Also recipient type is not required for 1099 reporting. It is required for 1042 reporting
Reg other point, TIN is a tax identification number. It can be SSN (Social Security Number) or EIN (Employer Identification number). This is required for IRS.
Amounts range from $10 to $600 in a financial year depending on the nature of services. Mostly it is $600.
Hope they are useful
S Jayaram

1099 reporting in ECC 6

We recently upgraded from ECC 5 to ECC6. I've noticed that there are some minor changes to the 1099 reporting program (RFIDYYWT). I've looked for some documentation explaining the differences but have not had any luck. Does anyone know where there is some good material for ECC 6?
The only field I noticed in ECC 6 that is not in ECC 5 is under "Output Control". There is a new button for "Reporting Date". What does that mean?
Monique Stephens

Did you search http://help.sap.com? I get a detailed explanation there what this report does....
I would also search http://service.sap.com/notes with the report name or use component "FI-AP-AP-Q1" or "XX-SCS-<country-ISO-code" to search for country specific extensions.
Can´t give you any advises here - tax reporting is country specific.
You can also check the releasenotes for FI at httP://service.sap.com/releasenotes
Markus

1099 Reporting from SAP

Hi,
I have not done 1099 reporting from SAP. How and where do we start to do 1099 reporting from SAP? We are in version 4.6C. How do we check if we have set up the vendor information properly in our database?
Thanks
Ram

Hi Ram,
you can configure 1099 vendors in SAP through vendor master records in Witholding tax tab.
but if you want to print 1099 vendors with amt paid to them year to date, you will require to have wiholding tax functionality active.
First of all make sure witholding tax functionality is activated in your co.code, than make sure there no payment made to that vendors before assigning them as a 1099 vendors, if payment has been made to 1099 vendors before assigning them as a 1099 , you will be required to post process line items. through on of the SAP programs.
SAP has std. forms to print 1099 vendors, you can use one of them to print them later on.
Assign points if useful

Vendor tax id change impacting 1099 reporting

Similar Messages

Maybe you are looking for