Setting Up Address Details

See QAD Financials User Guide for details on setting up business relations and suppliers. This section summarizes the fields that affect 1099 report processing for suppliers and entities.

The following details associated with a supplier are used with 1099 reporting:

• In Supplier Create, select Tax Report in the Tax Info tab for the supplier to be included in 1099 reports.

• When Tax Report is selected, the headoffice address of the associated business relation must have values for name, first line of the street address, city, state, and zip code.

• The headoffice address must have a federal tax ID. This can be in one of two formats: social security number (SSN) or federal tax ID. SSNs have nine digits, separated by two hyphens (000-00-0000).

• A default purchase type must be specified for the supplier on the Accounting tab.

The following details are relevant for a business relation linked to an entity generating 1099-MISC reports. On the General tab, the business relation must be marked as an internal entity. You can then update the Tax Report, Name Control, and Last Filing fields.

• Tax Report must be selected. When this field is selected, values for name, first line of the street address, city, state, zip code, telephone number, and federal tax ID are required for the headoffice address. A warning displays when Name Control is blank.

• Enter the IRS magnetic media control code assigned to this company in the Name Control field. This code is generally listed on the IRS mailing label and contains some combination of the first few letters of your company name.

In the United States, this code is assigned by the IRS and must be included on all 1099 magnetic media. It is not required when filing paper documents.

• Select the Last Filing field to indicate that this is the last time your company is filing a 1099-MISC under its current taxpayer ID number.

• The Taxable Address field must be selected on the Address Info tab. Entity addresses with the Taxable Address field cleared are not included in the 1099 Box MISC Report.

The payments included in the report are selected by the entity address or range of addresses that incurred the initial liability, as recorded on the invoices matched to the payments. Even when a payment is processed at a different entity, the headoffice address that incurred the liability is legally regarded as having made the payment.

Each entity address in the selection range must be identified with only a headoffice address type; otherwise, an error displays.