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1099 Processing and Sales/Use Tax

ssolberg

VIP Member
I've been processing 1099's (know both methods well; A/P & G/L Methods) through JDE for many years but got tripped up this year. One of our companies is now using Sales/Use Tax at Voucher entry time and I can see a problem coming. Example: On the voucher entry, I have a service to a vendor for $660 and a Use Tax Amount on that for $33, so I have a 1 line voucher for these amounts. What gets written to the F0911 is also a one line journal entry for the total of $693. When the 1099 process (G/L Method) comes along, it is going to want to write a 1099 for $693 but this is incorrect in that it should not include the $33 in tax.

Of course these can all be corrected with 1099 adjustments but the poor A/P person is going to have to review each vendor and transaction (or go through a report I will likely have to write) to pull these $'s out. Does anyone have suggestions on how to improve or change our processing for next year?? (with regards to the taxes)
 

SallyWhite

Well Known Member
Sannan:

You would have to make 2 F0911 entries, and have the tax amount booked to an
account that is not included in any of the 1099 AAI ranges.....I don't have
an accountant background, but I am confused why there wouldn't have been a
separate G/L account for the tax burden to begin with?

Regards,
Sally White

----- Original Message -----
From: "ssolberg" <ssolberg@Washcorp.com>
To: <jdeworldml@jdelist.com>
Sent: Tuesday, December 05, 2000 10:47 AM
Subject: 1099 Processing and Sales/Use Tax ~~0:2187


> I've been processing 1099's (know both methods well; A/P & G/L Methods)
through JDE for many years but got tripped up this year. One of our
companies is now using Sales/Use Tax at Voucher entry time and I can see a
problem coming. Example: On the voucher entry, I have a service to a
vendor for $660 and a Use Tax Amount on that for $33, so I have a 1 line
voucher for these amounts. What gets written to the F0911 is also a one
line journal entry for the total of $693. When the 1099 process (G/L
Method) comes along, it is going to want to write a 1099 for $693 but this
is incorrect in that it should not include the $33 in tax.
>
> Of course these can all be corrected with 1099 adjustments but the poor
A/P person is going to have to review each vendor and transaction (or go
through a report I will likely have to write) to pull these $'s out. Does
anyone have suggestions on how to improve or change our processing for next
year?? (with regards to the taxes)
>
>
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Sally White
SJSoftware, LLC
 

ssolberg

VIP Member
I'm not an accountant either nor did I do the Tax Setup stuff for A/P. As it turns out, they would be quite happy if the tax burden didn't go to the same account as the actual service expense but I can't find behind the Tax Setup stuff anything that points me towards separating them so they WILL write 2 lines to the G/L (hence, different accounts). MMMmmmm....
 

SallyWhite

Well Known Member
Oops - I have not worked much w/ VAT, and forgot that the system creates the F0911 for the tax amount. With that in mind, and thinking that you still need to address FY2000 1099s, I would think about writing a program that subtracts the tax amount (as per the F0411) from the F0911 amount, voucher by voucher, to update the 1099 workfile. It's been 3 years since I worked on 1099s, so I do not know for a fact that the GLDOC/DCT are part of the 1099 workfile. I know it's not pretty, but I'm thinking from a progammer's perspective. I do remember that we always had some design/logic problems that we discovered each year (typically brought to our attention by the 1099 recipients), despite our best efforts to resolve the problems we could identify.

Sally White
SJSoftware, LLC
 
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