In Oracle Cloud ERP Payables, generating 1099-MISC forms is a great feature that makes one part of tax

reporting an easy task!

In the United States (US), you must report to the Internal Revenue Service certain types of payments
that you make to US 1099 reportable suppliers. You can designate suppliers as federally reportable in
the supplier setup. When you enter invoices for the supplier, you classify invoice distributions by US
1099 miscellaneous type using the Income Tax Type field. At year end, you can report accumulated US
1099 payment information to the Internal Revenue Service, other tax agencies, and your suppliers, in
standard format.

As a note – 1099’s are generated based on payments, not invoices. Also, 1099’s are only generated for
suppliers receiving payments totaling over $600 for the year.

Vendor/Supplier Setup

If a supplier will require a 1099 generated for the year, it is necessary to have the proper settings in two
areas of the supplier. First, locate your supplier using the Manager Suppliers task. Review the settings
for:

Supplier > General > Income Tax tab: Needs to have a TIN, Federal Reportable, and a tax type indicated.

Supplier > Sites > General tab: Needs to have the site indicated as the tax reporting site for the supplier.

Enter, Account, and Pay Invoices

When invoices lines are created for the 1099 suppliers, the Income Tax Type will default to the type
indicated in the settings for the supplier. The line Income Tax Type can be changed on individual invoice
lines as needed for different income types – such as rent or non-employee compensation. These types
correspond with the 1099 box to be used, such as MISC1 for rent and MISC7 for non-employee
compensation. You can also clear the Income Tax Type field for distributions that aren’t federally
reportable.

Reporting Entity Setup

The Reporting Entity controls the Payer information that is printed on the 1099-MISC document. Also,
the Reporting Entity determines which payments will be included on 1099’s for the reporting entity. The
FSM task Manage Reporting Entities is used to review, change, or edit the tax reporting entities.

Generating 1099’s

There are a few different processes that need to be run to review and generate 1099 reports.

Exception Reports:

First, you will need to run the processes US 1099 Supplier Exceptions Report and the US 1099 Invoice
Exceptions Report to generate a report detailing any conflicts that might exist with 1099 suppliers or
income tax types on invoices.

The US 1099 Supplier Exceptions Report will provide a list of suppliers with the following exceptions:

Make any necessary changes to the suppliers. Rerun report to be sure all exceptions have been
corrected.
The US 1099 Invoice Exceptions Report contains the following sections:

– Invoice Distribution Lines for 1099 Suppliers with No Income Tax Type

– Invoice Distribution Lines for Non-1099 Suppliers with an Income Tax Type

*Note that these suppliers will not generate 1099’s. If they are listed and the supplier should not
receive a 1099, this is not really an issue as no 1099 will be created.

– US 1099 Suppliers with a Negative Income Tax Type Total

– US 1099 Suppliers with Withholding Exceptions

Make any necessary changes, and the rerun the exception reports until all exceptions have been
remedied.

US 1099 Payments Report

Next, run the process US 1099 Payments Report. This will generate a list of all payment details that
have been made toward income tax invoice lines. It will group the report by Supplier, then by Income
Tax Type. Additionally, it will provide the invoice and payment details.

Again, if any changes need to be made, see the previous section for enabling adjustments to paid
invoices. Rerun the report to confirm changes.

Generate 1099 Reports

Below is a list of all the available reporting processes:

o US 1099 Report: Reports the total US 1099 miscellaneous payments for US 1099 suppliers, and
generates US 1099 forms for each tax reporting entity in an organization. (alternative: US 1099 Forms
Report (Comma Delimited Format) can be used if needed)

o US 1096 Report: Summarizes each US 1099 form type that’s transmitted on paper, as required
by the United States Internal Revenue Service. The report is generated on a preformatted Internal
Revenue Service form.

o US 1099 Electronic Media Report: Generates summarized US 1099 information in electronic

format as required by the United States Internal Revenue Service.

o US 1099 Payments Report: Lists payments made to US 1099 reportable suppliers. (same as in
previous section)

NOTE:

1. Customers who upgrade to 19D in November, December or January will automatically get the
updated 1099 templates.
2. Customers who are on 19C can opt for Cumulative Weekly Patch Bundle or can upload 2019
Template manually by following Instructions attached.