As the calendar year winds down, it’s time to gear up for one of the most important tasks for businesses—sending out 1099 forms to contractors and freelancers. Ensuring your 1099s are prepared and distributed on time is not just good business etiquette—it’s a legal obligation. In this blog post, we’ll walk you through the key steps to manage your 1099 process effectively, keeping your business compliant and your contractors happy. The 1099 forms should be sent out by January 31st each year.
Below is your step-by-step guide to producing 1099 reports from Acumatica.
Vendors
Identify Vendors who should receive a 1099 form in the Vendor profiles screen:
- Select ON the 1099 Vendor checkbox on the General tab of Vendors screen.
- Populate the 1099 Box Number.
- Populate the Tax ID Number and TIN Type fields on the Purchase Settings tab.
Acumatica: Preparing 1099’s for year 2024 
Please consult IRS.gov to learn about recent changes.
Threshold amounts
To Adjust threshold amounts for 1099 boxes, update the 1099 Settings tab of AP Preferences, for each type of 1099 as needed.
1099 Year Summary
View the 1099 Year Summary report to see the Year-to-Date figures for each 1099 vendor.
Select report parameters:
- Report Format:
- 1099-MISC: Generates the 1099-MISC form. For years 2020 and later, this report does not include Box 7.
- 1099-NEC: Generates the 1099-NEC form for years 2020 and later.
- Company/Branch
- Year. If the year you need does not appear in the lookup, no 1099 vendor had payments in the calendar year selected.
Adjustments to 1099 amounts
Amounts reported on 1099 Year Summary report may require adjustments:
If the paid Bill can be found in Acumatica: Select the bill on the screen and make changes to the 1099 Boxes on each detail line as needed.
If the paid bill does not exist in Acumatica (because it wasn’t migrated):
Turn on Migration mode in AP Preferences screen while other users are signed out of Acumatica. Enter and release a Bill with $0 open balance, Adjustment Amount, and box # on each line. Use a Bill Date in the current 1099 year ➡️ the Year for which 1099 forms are being prepared.
Create e-File
e-Filing is required for a quantity of 10 or more forms.
Transmitter: Select Company or Branch
Year: Select Year
Format: MISC or NEC
Prepare for: Select one branch/company, or ‘all marked companies’ to include all branches, all companies at the same time.
Click Process to prepare 1099’s for selected vendors or click Process All to print 1099’s for all vendors listed in the grid area.
Clicking Process or Process All produces a text file in the government-required format. You may open the file or may elect to save it in a folder on your system, for uploading to the IRS.
Print 1099 Forms
If submitting 10 or fewer 1099’s, printed forms may be used: 1099-MISC or 1099-NEC.
Select Company or Branch, and Year. Run Report.
Each report will be previewed on the screen. Load forms into the printer. From the preview, you can click the Printer icon to send to your printer.
The 1099 prints on standard forms that can be ordered online or purchased in office supply stores. Two forms print per page. The 1099’s print first, followed by the 1096 (Totals) form on the last page.
Navigating the 1099 process doesn’t have to be overwhelming. By following these steps, you’ll be well on your way to a smooth and successful filing season. Have questions about 1099 processing in Acumatica or need additional support? Our team is here to help! Email us at support@klearsystems.com, and we’ll be happy to assist.
Ready to tackle tax season with confidence? Let’s get started!
