Defining income codes

Use income codes to track vendor reportable income for reporting or withholding purposes. An income code represents a type of 1099 reportable income tax form or tape record. These 1099 forms are supported: miscellaneous, interest, and dividend. This procedure describes the process for defining income codes.

Define an income code

  1. Access Income Code (AP02.4).
  2. Define a code and description for the income code and complete the rest of the fields.
  3. Specify this information:
    Form Type

    Select the type of 1099 form you will need to produce: Miscellaneous, Interest, Dividends, Government Payments, Merch Card, and Third Party Foreign Person. If you leave this field blank, the system will track reportable income for unsupported form types.

    Box Number

    This represents a box number on the tax form. Specify the tax form box number used to print a vendor's accumulated reportable income. Each form has corresponding boxes for different types of income.

    It is your responsibility to update the income codes on Income Code (AP02.4) to print to the appropriate box number.