Completing setup for reportable income

Although some components of reportable income setup are described in the setup chapters of this user guide, the steps are reviewed here to provide you with a one-stop checklist of the required setup. This procedure describes steps you take to complete setup for reportable income.

Complete reportable income setup

  1. Use Income Code (AP02.4) to define the income codes you want to use to track a vendor's taxable income. Defining income codes
  2. Use Reportable Income Group (AP02.1) to define a reportable income group that associates a vendor group and tax identification number. Consider these tabs.
    Address

    Use the Address tab to define address information that is used in the creation of 1099 forms and tapes.

    Contact Information

    Use the Contact tab to define a contact for the reportable income group.

    1099 Defaults

    Use the 1099 Default tab to record additional information used for creating 1099 reportable income forms or tapes. You can define a payer state number, transmitter control code, and payer name.

  3. Click the Entities button to assign companies and process levels to the group.
  4. Specify this information:
    Company

    Assign an accounts payable company to the reportable income group. The company and reportable income group must have the same vendor group.

    Process Level

    You can also assign a specific accounts payable process level to the reportable income group. If left blank, all process levels defined for the company are assigned to the reportable income group.

  5. To define an income withholding code to link the General Ledger income withholding accrual account to an invoice, use Income Withholding Code (AP05.8). Defining income withholding codes
  6. Assign a reportable income code to a vendor class, to a vendor, or to reportable income invoices.
    To assign the code to Then
    A portion of an invoice Specify or select the code on the Options tab of Basic Invoice (AP20.1) or Taxed Invoice (AP20.2) and specify the reportable amount of the invoice in the Amount field.
    A specific invoice Specify or select the code on the Options tab of Basic Invoice (AP20.1) or Taxed Invoice (AP20.2).
    All invoices for a vendor Assign the code to the vendor on the Defaults tab of Vendor (AP10).
    Invoices for all vendors in a vendor class Assign the code to a vendor class using Vendor Class (AP00.3).
  7. When defining a reportable income vendor, assign a tax identification number to the vendor on Vendor (AP10.1).
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