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1099 Boxes

  • 22 December 2023
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Userlevel 5
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Acumatica has as a 1099 Box selection - MISC 07/NEC 02 - Direct Sales.  Is there any documentation on this or does someone know how / where this box should be used ?  I have found that using this Box on AP bills does not print on either 1099 form.  Is this a big?

IRS says… You may either file Form 1099-MISC (box 7) or Form 1099-NEC (box 2) to report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale.

 

 

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Best answer by DmitryShershnev55 28 December 2023, 16:04

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Hi, 

Box 7 was renamed and reported on a different NEC 1099 form starting a couple years ago, 2021 I think. 
Are your test bills that contain box 7 closed/paid? If so, in what year?  Are the 1099 preview reports being printed for the same year in which the bills with box 7 were paid?

Related settings can be found on Companies and branches, to identify from which companies and branches the 1099s will be printed. What is the branch on the AP bills and payments that use box 7? From what company/branch are the 1099 reports being tested?

Laura

Userlevel 1

There is an AP Preference Report Direct Sales On, entered on 1099 Settings tab. It defines whether Direct Sales is to be printed on MISC form or NEC form. 

Note that direct sales is not printed as amount but as X in the Box 7 in 1099-MISC or  in the Box 2 in 1099-NEC form.

If you need to always print it in the MISC form, set the preference to Form 1099-MISC Always.
If you need to always print it in the NEC form, set the preference to Form 1099-NEC Always.
There are two more options:
Form 1099-MISC if Filed for Payee: the X is printed in most of cases in MISC form; the only case when X is printed in NEC is when NEC shall be printed anyway and there are no other amounts to be printed on MISC.
Form 1099-NEC if Filed for Payee: the X is printed in most of cases in NEC form; the only case when X is printed in MISC is when MISC shall be printed anyway and there are no other amounts to be printed on NEC.


To have it printed in the 1099-MISC or 1099-NEC forms:
1) make sure there are bills or cash purchases for vendor with 1099 Vendor checkbox selected,  with lines with 1099 Box = MISC 07/NEC 02, which are paid in the year, with total paid amount > minimum report amount set in AP Preferences, 1099 Settings tab (by default 5000 for MISC 07/NEC 02).
2) make sure this amount is shown in Vendor History (AP405000), form, for this branch/vendor/year/box.
3) print 1099-MISC or 1099-NEC. Depending on Report Direct Sales On , direct sales shall be reflected in one of them.

Userlevel 1

Basically, verify Vendor History (AP405000) and if expected amount is there then 1099-MISC or 1099-NEC shall show X in the dedicated position.

Userlevel 5
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@DmitryShershnev55 - Thank you for your detailed response

1 - AP Preference / 1099 Settings = Report Direct Sale On - Form 1099-Misc Always

2- 1099 Vendor History - AP405000 for Vendor / Year shows amount $27,000  for Box MISC07/NEC02

3 - Printing 1009 - Misc - Prints for this vendor but there is no amount anywhere on form 

It appears I have this configured correctly but not getting expected results

I have report to ACM support 

 

 

 

Userlevel 1

It is that X  that tells that there are direct sales. Amount is not printed. In the paper form 1099-MISC  , find the text  “7 Payer made direct sales totalling ...” and find there is a checkbox that is to selected, rather than there is a place for amount to be printed.
 


 

Userlevel 1

Find the form there
https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

Userlevel 5
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@DmitryShershnev55 should the amount still print to complete the text ?

Userlevel 5
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@DmitryShershnev55 I see it now - no amount need - thank you for you help

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