Three Simple Steps to Make Oracle ERP Cloud Ready for 1099 Season

It’s 1099 season – is your ERP ready?

It only takes a few simple steps to verify your data and make sure you are fully prepared to meet the IRS deadline to publish your 1099’s.

Step 1:

Validate that your “Reporting Entities” are setup, and that they have assigned “Balancing Segments”.   A reporting entity contains the federal reporting number.  It will logically group your 1099’s by paying company from the payables invoices lines.

Step 2:

Validate that your 1099 Suppliers contain one “site” flagged as a “tax site”, that it has a “Tax Type” assigned, such as “MISC7”, a country code, and a Tax ID number on the Supplier Profile page.  If there is a “Tax Reporting Name” that is different from the Supplier Name (such as a DBA), verify it is populated with the correct data.

 

Step 3:

Create and Pay invoices.  Validate that the line items on the invoice contain “MISC7”.  To validate these invoices will be picked up on a 1099, run the report: US 1099 Payment Report.  To determine why something is missing, you can run the following helpful reports:

US 1099 Invoice Exceptions Report
US 1099 Supplier Exceptions Report

 

If you have already created invoices BEFORE your supplier settings were updated, you can run the process “Update Income Tax Details”, which will retroactively populate tax data on your invoices based on the new supplier information.

For more useful tips and tricks, contact Perficient today, respond to this blog, or email matt.makowsky@perficient.com for a free 1 hour consultation.

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