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 Accounts Payable Module Procedures
For Cougar Mountain Software Support's
Professional Version (V7, V8, V9, V10, V11 & V12)
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COUGAR
Mountain-1099 MISC. PROCEDURES FOR 1996
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Your
1099 Vendor is set up through Accounts Payable Vendor Maintenance (line #19-1099 Type). The entry on this line is available as a sort
option in most A/P reports and in generating 1099 forms.
To
set up a 1099 Vendor: Line #17-Customer
Number is for either the EIN or Social Security Number of your vendor that will print out
on the 1099 form. On line #18 Product type
you can put what kind of service you received from your vendor (ie, Rents, Accounting, Labor etc. this is for
your information only and will not print out on the 1099 form).
You
will need to establish codes for line #19, however you should enter codes that make sense
to you. You can use up to 6 characters.
1st
Character: Enter the payment types (1-11) as
defined (see attached sample 1099). This is
the most important character as it will place the dollar amount in the right section when
printing your 1099 form.
2nd
Character: Enter the letter B for a Business
or I for an Individual (optional).
3rd
Character: Enter the letter N for
non-employee, R for Rents, M for Medical payments, L for Labor only, etc. (optional)
4th
- 6th: These character are user defined, but
remember do not get to complicated "the shorter is the better" and can be left
blank and which most users will leave blank. (optional)
SAMPLES:
1BS = Rents, Business, Storage
2IN
= Royalties, Individual, Non-Employee
3BS
= Other Income, Business, Non-employee
5BS
= Fishing Boat, Business, Non-employee
6BS
= Medical Payments, Business, Non-employee
7BS
= Non-Employee, Business, Non-employee
8BS
= Substitute Payments, Business, Non-employee
revised
01-23-97
RUNNING
REPORTS
Through
Accounts Payable go to #5 Print Reports. First
print a Vendor List which will list all your Vendors that need to receive a 1099. Sort by using #4 - 1099 Type. Vendors names will be start to end, starting 1099
type will be number 1 (if you do not start with number 1 but start with number 2, the
sorting will not pick up the rents your have paid), your ending letter will be Z, this will catch all your letter coding. Next run a Master Report using the same procedure
as running the Vendor List. This report will
give you your year to date figures for each Vendor and is needed as back up to keep with
your copy of the 1099 forms and transmittal form.
PRINTING
1099-MISC. FORMS
If
running on a laser printer using plain paper for forms except for the IRS copy which must
be on the red ink preprinted forms, you must upload the format to the printer first. This is done from the Application menu, Laser
forms. See attached exhibit.
Then
both Dot Matrix and Laser printer users need to go to Accounts Payable to #5 Print
Reports. Select print 1099 Forms. Starting 1099 type will be number 1; Ending type
will be the letter Z; Vendors will be start
to end; Break amount is $599.99; Print Test is optional; Print Laser form will be P for
preprinted. Hit F4 to print, it will tell you
t
o load copy A into the printer (remember to load as many form A
as you have Vendors), next it will prompt you to load copy 1, then load copy B and finally
load copy 2.
The
next step will be to fill out (by hand) your transmittal form that is self explanatory. Send copy A along with transmittal to the IRS,
copy 1 is for your records (be sure to attach all your reports and work sheets), copy B
and copy 2 are for the Recipient.
Final
date for mailing 1099's to Vendors and filing with the IRS is January 31 for the prior
calendar year.
SUMMARY
OF STEPS
1. Immediately send an I-9 Request for Taxpayer
Identification as soon as you do business with someone who is subject to get a 1099 even
if they haven't reached the treshold yet.
2. Order your 1099 forms, preferrably in late
November or early December. Consider ordering
your W-2's, W-4's, W-6's, DE-6's and DE-7's. It
might be a good idea to take an inventory of all your custom printed forms as well such
as: checks, invoices, statements, envelopes and letterhead and order all the forms you
need. You should be able to get a better
price.
3. In December or early January, review your A/P
VENDOR LIST for ommissions on those who maybe getting a 1099.
4. Check your 1099 format in Cougar Mountain-A/P Profile
Mountain, Form Maintenance, 1099 Maintenance.
5. Final review of A/P VENDOR LIST and a sample print
of 1099's on plain paper.
6. After fixing any problems, load the 1099 forms and
print.
7. Separate forms and mail to the vendor, to the IRS
with transmittal and file the companies copies.
IMPORTANT
NOTE:
Although Cougar Mountain is date sensitive on most
things, it is not date sensitive on this dollar amount field. This means that the above must be completed prior
to posting any new year checks.
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