AP Suppliers

Manage Suppliers

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AP Basic Chapter 2Section Objectives

At the end of this section, you should be able to: Enter new suppliers. Enter employees as suppliers. Perform supplier inquiry. Submit supplier reports. Perform supplier merges Understand supplier 1099 processing

PAGE: 2

Manage Suppliers: Overview

Set up suppliers to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. You must define a Supplier Master record for each Supplier you do business with. When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Oracle uses information you enter for suppliers and supplier sites to enter default values when you later enter transactions for a supplier. Most information you enter in the Suppliers window (Payment, Accounting, Control and Tax) is used to enter defaults in the Supplier Sites window.

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Master Supplier(ABC Company)

Site(Detroit)PO Site

Site(Chicago)Pay Site

Site(Detroit)

Pay and PO site


Trace the flow of Supplier default values:Oracle Payables contains a hierarchy of options and defaults to expedite and control data entry. Options and defaults set at one level automatically cascade down to all lower levels in the hierarchy. If desired, you can override options and defaults at lower levels in the hierarchy.

Enter Suppliers[Type a quote from the document or the summary of an interesting point. You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box.]

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SUPPLIER

PAYMENT ACCOUNTING CONTROL TAX

Terms Liability Flexfield Hold Invoices Tax NamePayment Method Payment Flexfield Invoice Amount Limit Tax GroupPay Group Distribution Set Hold Unmatched Invoices Tax Type

SUPPLIER SITE


(Same as Supplier) (Same as Supplier) (Same as Supplier) (Same as Supplier)

INVOICE\PAYMENT


(from Supplier Site) (From Supplier Site) (From Supplier Site) (From Supplier Site)


Suppliers—Integration

OracleAssets

Oracle CashManagement

OracleGeneral Ledger

Oracle HumanResources

OraclePurchasing

OraclePayables

OracleProjects

How Oracle Products Use Supplier Information:Three Oracle financial applications use the Supplier windows: Oracle Payables, Oracle Purchasing, and Oracle Assets. If you use more than one of these products, supplier information is shared with the other products.To enter a purchase order, Oracle Purchasing needs at least one purchasing site. Oracle Purchasing uses supplier and supplier site information to enter default values such as Freight Terms and Shipment Method for all of the supplier's purchase orders. By defining receiving control options, you can ensure that products you receive are within the tolerance you specify and the guidelines you choose. Oracle Assets uses only the Supplier Name, Supplier Number, and Inactive Date information from the Supplier windows.

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Enter Suppliers: Master Data1. Navigate to the Suppliers window: Suppliers\Entry

HEADER REGION

Field Name Comments Required?

Supplier Name Enter unique Supplier Name. Use naming convention that minimizes risk of duplicate supplier.

Yes

Supplier Number System generated Yes

Alternate Name Company Identification Number

No

Taxpayer ID Company Tax Identification Number or employee SSN

No

Tax Registration Number

Value Added Tax Registration number for VAT supplier

No

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Enter Suppliers: Master Data

Inactive On To prevent Invoice or Purchase Order entry for this supplier after a certain date

No

Enter additional supplier information via the appropriate Tabs of the Supplier window. Much of this information will default to the Supplier Site level.

GENERAL TAB


Parent Supplier Name Name of suppliers parent enterprise if franchise\subsidiary. Parent enterprise must also be entered as supplier.

No

Number Parent Supplier number. System generated

No

Customer Number Number your supplier uses to identify you.

No

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AP Basic Chapter 2: Master Data

The Classification Tab is used to define the type of supplier and their details:

CLASSIFICATION TAB


Type Vendor type. Use to group suppliers for reporting etc.

Yes

Employee Name Name of employee Yes – if Type is Employee.

Employee Number Choose from list of values if Type is Employee

Yes-if Type is Employee

One Time Check if vendor will only be used once. No repeat business

No

SIC Standard Industry Code

No

Minority Owned Minority owned business. Choose from list of values, if applicable

No

Small Business Check if vendor meets small business criteria

No

Woman Owned Check if vendor meets woman owned criteria

No

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AP Basic Chapter 2 Master Data

Use the Accounting Tab to enter default Accounting distribution information. Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.

ACCOUNTING TAB


Distribution Set Default Distribution Set for all suppliers. Defaults to all Invoices for supplier.

No

Liability Default Liability account for all invoices for supplier. System Generated

No

Prepayment Default Prepayment account for all invoices for supplier. System Generated

No

Future Dated Payment If you use future dated payments, enter account to use here

No

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AP Basic Chapter 2 Master Data

Use the Control Tab to prevent payment of multiple supplier invoices by applying holds to the supplier rather than to each individual invoice. You can enable several types of supplier related holds:

CONTROL TAB


Invoice Amount Limit Enter a max dollar amount allowable on a particular invoice

No

Invoice Match Option Select to match supplier invoices to PO or Receipts for PO shipments.

No

Hold All Payments Check box to hold all payments to this vendor for Payment Batch.

No

Hold Unmatched Invoices

Check Box to hold all invoices not matched to purchase orders

No

Hold Unvalidated Invoices

Check box to hold all invoices that are currently not validated for payment

No

Payment Hold Reason Reason you are applying a hold to an Invoice.

No

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AP Basic Chapter 2Master DataUse the Payment Tab to enter supplier payment data. All supplier payment values default to new supplier sites you enter. Supplier site values default to invoices. You can override any payment defaults during supplier site entry.

PAYMENT TAB


Terms Determines Payment Schedule for Invoice. Choose for list of values

Yes

PayGroup PayGroup assigned to supplier. Choose from list of values

No

Payment Priority Choose from list of values (1-99) which represents priority of payment

No

Invoice Currency USD NO

Payment Currency USD NO

Always Take Discount Check box if discount is always to be taken for supplier invoice.

No

Exclude Freight From Discount

Check box if excluding freight amount from discount for invoice

No

Pay Alone Payables creates a separate payment for each invoice.

No

Allow Interest Invoices Check Box to allow interest to be calculated and paid on invoices

No

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Terms Date Basis Date Payables uses to calculate a schedule payment for a supplier.

Yes

Pay Date Basis Determines pay date for a suppliers invoice.

Yes

Payment Method Method you most frequently use to pay supplier invoices.

Yes

Use the Bank Accounts Tab to record supplier bank accounts that are used for electronic payment transactions:

BANK ACCOUNTS TAB


Bank Number Enter vendor’s bank number

No

Branch Enter vendor’s bank branch number

No

Account Name Enter vendor’s bank account name

No

Number Enter vendor’s bank account number

No

Check Digits Enter vendor’s check digits

No

Account Type Enter vendor’s bank account type

No

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AP Basic Chapter 2Master Data

If you pay suppliers with electronic payments, use the EDI Tab to enter the following information for your supplier:

EDI Tab


Payment Method How the electronic payment will be made.

No

Payment Format Choose from list of values if Payment Method is selected

No

Remittance Method How remittance advice is sent to payee.

No

Remittance Instruction Electronic payment instructions.

No

Transaction Handling EDI Transaction Code specifying actions to be taken.

No

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Enter Invoice related Tax information in the Invoice Tax Tab:

INVOICE TAX TAB


Invoice Tax Code Represents Tax Charges on Invoice for supplier.

No

Use Offset Taxes Enable this check box to record taxes on invoices while offsetting the tax liability.

No

Calculation Level Level (Header, Line, Tax Code, None) in which Payables automatically calculates taxes for supplier

No

Rounding Rule Round up or down for automatically calculated Tax Amount. Choose from pull down menu

No

Allow Override Check if calculation rule can be overridden

No

Distribution Amounts Include Tax

Check box if distribution amounts include tax

No

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Use the Tax Reporting Tab to enter data for 1099 reportable suppliers:

TAX REPORTING TAB


Federal Check box if income is reportable federally to IRS.

No

Income Tax Type Select a default income tax type, which defaults to Purchase Order lines and Invoice distributions for 1099 reporting.

No

State Check box if income is state reportable

No

Reporting Site Reporting Site for 1099 processing

Reporting Name Enter if 1099 Reporting name is different than supplier name

Name Control Enter the first 4 characters of the supplier’s last name. This appears on the 1099 form.

Verification Date For suppliers taxpayer ID.

Organization Type

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Enter Supplier Purchasing Values via the Purchasing Tab. All Supplier values default to new supplier sites you enter. Supplier site values default to Purchase Orders and Purchasing Requisitions you create:

PURCHASING TAB


Ship-To Location Location where supplier sends shipments for goods\services.

No

Bill-To Location Location where supplier sends invoice for goods and services.

No

Ship Via Freight Carrier you use with a supplier.

No

FOB Free-on-Board code for a supplier.

No

Freight Terms Negotiated freight terms with a supplier

No

Create Debit Memo from RTS Transaction

Payables will automatically create DM when you enter a Return To Supplier in Purchasing

Purchase Order Hold Check if purchase orders should be on hold for this vendor

No

Purchasing Hold Reason

Reason you are preventing approval of purchase orders for this supplier. User Defined and must be enabled

No

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Use the Receiving Tab to enter Receiving values for a supplier. All supplier-receiving values default to new purchase orders you enter for a supplier. You can override any receiving defaults during Purchase Order entry:

RECEIVING TAB


Enforce Ship-To Location

Determines if the receiving location must be the same as ship-to location.

Yes

Receipt Routing Default receipt routing that you assign goods (Direct Delivery, Inspection Required, Standard Receipt)

No

Match Approval Level

Specify 2-way, 3-way or 4-way matching of invoices, PO’s and Receipts.

Yes

Qty Received Tolerance

Enter percentage number of allowed over shipment

No

Qty Received Exception

How to handle receipts that exceed Received Tolerance (None, Warning, Reject)

No

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RECEIVING TAB


Days Early Receipt Allowed

Enter number of days to allow early receipt

No

Allow Substitute Receipts

Check box to allow substitute receipts

No

Days Late Receipt Allowed

Enter number of days to allow late receipt

No

Allow Unordered Receipts

Check box to allow unordered receipts

No

Receipt Date Exception

How Purchasing handles early or late Receipts (None, Warning, Reject)

No

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Enter Suppliers: Sites

Identify the different sites of a supplier:

Y

San Francisco

Supplier

Purchasing SitePay Site

Purchasing SiteRFQ Only Site

Pay Site

Tokyo Paris

Contacts Contacts Contacts

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AP Basic Chapter 2

Enter Detailed Supplier Site InformationA Supplier Site is an address where your Supplier conducts business. Sites are classified in Oracle Purchasing as Purchasing Sites, RFQ Only sites and\or Pay sites. You cannot enter an Invoice for a supplier that has not been defined with a Pay Site. In the General Tab, check the appropriate Site Uses check boxes to indicate which specific business functions are performed at each site. A Pay Site is a supplier site to which you send payment for an invoice; you cannot enter an invoice for a supplier site that is not defined as a pay site. A Purchasing Site is a supplier site from which you create a purchase order for goods or services. An RFQ Only Site is a supplier site from which you receive quotations; this should be checked only if you do not allow entering purchase orders for a supplier site. Primary Pay Site defines the Default pay site for the Supplier. The Procurement Card checkbox indicates the site that accepts your Procurement Card. Enter contact information specific to that site in the Contacts Tab. This information is for your reference only and is not used by the system. All other Supplier Site information defaults from your Supplier information (General, Accounting, Control, Payment, Bank Accounts, EDI, Invoice Tax, Tax Reporting, Purchasing Tabs). You can modify this information if necessary.

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AP Basic Chapter 2

Enter detailed supplier site information: Supply\Enter

Select the Site button from the Supplier window:


Site Name Displays existing supplier site name

Yes

Country Enter Country No

Address Enter street address Yes

City Enter city Yes

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AP Basic Chapter 2


State Enter state Yes

Postal Code Enter postal code Yes

Province Enter Province name No

County Enter County name No

Language Choose language from list of values

No

Inactive On Enter date vendor is inactive

No

Pay Site Check box if address is a pay site

No

Primary Pay Check box if address is a primary pay site.

Purchasing Site Check box if address is a purchasing site

No

RFQ Site Only Check box if address is an RFQ site

No

Procurement Card Site accepts the credit card brands of your procurement card

No

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AP Basic Chapter 2

Use the Contacts Tab to enter supplier site contact information. This information is for User reference only and is not used by the System:

CONTACT TAB


LAST Contact last name Yes

First Contact first name No

M Contact Middle Initial No

Prefix Mr\Miss\Mrs No

Title Contacts job title No

Department Contacts Department No

Mail Stop Contact mail stop No

Inactive On Enter Date to inactivate contact

No

Telephone Enter contact Telephone number

No

Alternate Telephone Enter alternate number for the contact

No

Fax Enter contact FAX number

No

E-mail Enter contact email address

No

URL Enter contact home page

No

Alternate Contact Name

Enter name for another supplier contact

No

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Enter Suppliers: Employees

Enter an employee as a supplier so that you can pay the employee’s expense reports. Enable the “Automatically Create Employee as Supplier” Payables Option on the Expense Report tab to automatically enter an employee as a supplier during Invoice Import.

Enter the employee manually as a supplier in the Suppliers window. In the Classification Tab of the Suppliers window select ‘Employee’ for the Supplier Type:

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Enter Suppliers: Employee Expense Reports

Expense Reports are created in Oracle to capture and pay the business related expenses of employees. You enter expense reports using the ‘Expense Reports’ window in Payables. You can also enter expense report information in Oracle Internet Expenses (iExpenses) and Oracle Projects and import expense report data into Payables. Payables automatically saves the expense information in the Expense Report Interface tables AP_Expense_Report_Headers_All and AP_Expense_Report_Lines_All

When you submit the Expense Report Import program, Payables creates invoices from the expense reports. This process populates the Invoice tables AP_Invoices_All and AP_Invoice_Distributions_All. You then validate and pay these invoices like any other invoice. Before creating expense reports, you must define all employees in Oracle. If you are using Oracle HRMS, you enter your employees in the ‘People’ window. If you are not using Oracle HRMS, setup your employees in the ‘Enter Person’ window in Oracle GL.

You can also define Expense Report Templates to model the different types of expense reports (formats) your company uses. You can define default values for expense items to simplify the Expense Report process.

Invoice\Entry\Expense\Report

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Review Supplier Information: Online

You can find Suppliers by using the Find Suppliers window OR by entering a query directly into the ‘Suppliers Window’:

In the Find Suppliers window you can enter a wide variety of search criteria, including supplier name, supplier number, employee name, supplier type, payment terms, parent supplier, and payment priority range. You then choose the Find button to navigate to the Suppliers window, where Payables displays all suppliers that match the Find criteria. From the Suppliers window, you can review all information about a supplier.

Suppliers\Inquiry:


Supplier Name Use first few letters of Vendor Name & ‘%’

No

Taxpayer Id List of values No

Inactive Dates List of values No

Supplier Type List of values No

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AP Basic Chapter 2


Parent Supplier No

Payment Priorities No

Reporting Name No

Payment Terms No

Pay Group No

Supplier Number No

Tax Registration No

One Time No

Employee Number No

Parent Number No

Federal No

Income Tax Type No

State No

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Review Supplier Information: Submit Supplier Reports

Submit reports to review supplier information, including invoice and payment information.

Oracle Payables Supplier Reports

Report Name Description

Vendors Report Reviews supplier, supplier site, and supplier site contract information.

Vendor Audit Report Reviews supplier names whose names are similar up to a specified number of characters.

New Vendor/New Vendor Site Listing

Reviews new supplier and supplier sites.

Vendor Payment History Reviews the payment history, including void payments, for a supplier or group of suppliers.

Vendor Paid Invoice History

Reviews the payment history, including discount and partial payment information, for a supplier or group of suppliers.

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Merge Suppliers: Overview

The supplier merge process:

Merge Suppliers

Supplier Merge

Maintain Audit Trail

Review Merge Results

Identify Duplicate Suppliers

ABC Corp ABC Corporation

PurchaseOrder

Invoice

Vendor Merge ReportPO Headers Updates Report

Vendor AuditReport Purchase

Order

Invoice

ABC Corp

PurchaseOrder

Invoice

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Merge Suppliers: Overview

Merging Suppliers:

Although the AP system will not allow you to enter duplicate supplier names, you may inadvertently define the same supplier by using two different names. For example, you might enter ABC Corporation and ABC Corp, or you might enter a contractor under his name and his company name. You might also create duplicate suppliers if you import suppliers from another accounts payable system. Use Supplier Merge to combine two or more suppliers that you identify as duplicates. You can update purchase orders and invoices for the old supplier to refer to the new supplier. The Supplier Merge window also enables you to merge supplier sites so that any sites assigned to an old supplier can be reassigned to the new supplier. When you merge suppliers, you transfer invoices, purchase orders, or both from one supplier and site to another supplier and site. You can transfer to a new supplier and site unpaid invoices only or all invoices (including paid and partially paid invoices). Oracle Payables will not merge invoices if the merge would create a duplicate invoice for a supplier. For best auditing results, transfer both paid and unpaid invoices to a new supplier and site so you can identify duplicate payments easily. Also, transfer both purchase orders and invoices to a new supplier and site so all invoice and purchase order information refers to the same supplier.After you have merged suppliers, Oracle Payables automatically prints the Vendor Merge Report as an audit trail of your supplier merge activity. The Vendor Merge Report also lists any duplicate invoices that it did not merge. Research the duplicated invoice. You can then update the invoice number if the invoice has not been paid or posted.

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Merge Suppliers: Identify duplicate suppliers

Review records to identify duplicate suppliers and merge duplicate suppliers.

Identify Duplicate SuppliersReview supplier records periodically to prevent duplicate suppliers, improve system performance, and provide accurate supplier reporting.Use the Suppliers Report and the Suppliers Audit Report to help identify duplicate suppliers.

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AP Basic Chapter 2

To Merge duplicate suppliers navigate to the ‘Supplier Merge’ window: Suppliers\Supplier Merge.

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Merge Suppliers

Use the Supplier Merge window to merge suppliers.1. Use the pop-up list to choose what invoices you want copied

to the new supplier (All\Unpaid\None).2. Select the PO checkbox if you want to transfer all purchase

orders form the old supplier to the new supplier.3. Enter the Old Supplier Name.4. Enter the old Supplier Site.

5. Select the Copy Site checkbox if you want to reassign the Old Supplier Site to the New Supplier. During the merge, Oracle Payables enters the merge date as the inactive date for the old supplier site and creates a new site for the new supplier with the information you selected to transfer.

6. Do not select the Copy Site check box if you want to merge the Old Supplier site information with all existing New Supplier Site information. You need to enter one of the New Supplier’s existing sites in the Sites field. During the merge, Oracle Payables enters the merge date as the inactive date for the old supplier site and combines all of the information you selected with the new supplier site information.

7. Choose Merge to submit a concurrent request to run the Supplier Merge Program which transfers the information from the Old Supplier to the New Supplier and also runs the Purchase Order Header Updates Report and the Vendor Merge Report.

8. You will get a message advising this action is irreversible.9. Review the log file and reports after the request is complete.

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Merge Suppliers:


Invoices Select which invoices to transfer to the new supplier: All, Unpaid, None.

Yes

PO Check this box if you want to transfer all Purchase order information to the new supplier.

No

Name Enter the Supplier Name from which you want to merge information.

Yes

Site Enter the Supplier Site from which you want to merge information.

Yes

Copy Site Select to perform copy VS. Merge (Copy will keep the existing Site)

No

Name To Suppler Name Yes

Site To Supplier Site Name Yes, unless Copy Site

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Process 1099 Suppliers:

Process 1099 suppliers to comply with Internal Revenue Service (IRS) regulations that require accounts payable departments to report 1099 payment information for 1099 suppliers (Suppliers who perform contract supplier services such as lawn service and building maintenance over $600.00).

1099 steps:

1. Set up 1099 reporting.

2. Enter 1099 suppliers.

3. Create 1099 payment information.

4. Identify and resolve 1099 exceptions.

5. Submit 1099 reports.

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Process 1099 Suppliers

Implement 1099 reporting using Oracle Payables.

Submit 1099 Reports

Pay toNov 21, 1994

$500.00

Enter 1099 Details for Suppliers

Set Up 1099 Reporting

Identify and Resolve 1099

Exceptions

Select Combined Filing Program

Payables Option

Enter and Pay 1099 Invoices

DefineTax Regions

DefineTax Reporting

Entities

Enter Supplier

1096 Forms1099 Forms

1099 Payments1099 Tape

1099 Vendor Exceptions Report1099 Invoice Exceptions Report

PAGE: 36

Process 1099 Suppliers: Setups

Setting Up Oracle Payables for 1099 Reporting:

1) Define your tax reporting entities that produce 1099 reports. 2) To use combined federal and state 1099 filing, and to produce K-Records and B-Records, select the Combined Filing Program Payables option.

K-Records: A summary record of all 1099 payments made to a supplier for a single tax region that participates in Combined Filing Program

B-Records: A summary record of all 1099 payments made to a supplier for one tax region.

3) If you use combined federal and state filing, define your tax regions.

PAGE: 37

Process 1099 SuppliersReporting Entities:

1) A Reporting Entity is any person or organization that has a unique Tax Identification Number (TIN).

2) Enter a unique tax identification number (TIN) for each reporting entity.

3) Define an unlimited number of reporting entities.4) Assign each balancing segment to only one reporting entity.5) Submit 1099 reports for each reporting entity.

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AP Basic Chapter 2

Navigate to the Reporting Entity window to define the reporting entities that will produce 1099 reports:

Setup\Tax\Reporting Entities.

In the Reporting Entity window, enter the Name, Location, optional description and Tax ID Number of the Reporting Entity you are defining.

PAGE: 39

AP Basic Chapter 2

Enable the Combined Filing Program Payables option. Navigate to the Suppliers Tab of the Payables Option window:

Setup\Options\Payables

Select Supplier Region and check the ‘Combined Filing Program’ check box.

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AP Basic Chapter 2

Use the ‘Income Tax Regions’ window to define tax regions and reporting specifications for tax regions if participating in the Combined Filing Program. Use the predefined region abbreviations, descriptions, and codes for all U.S. states, the District of Columbia, and some U.S. territories.Setup\Tax\Regions:

Enter the region Abbreviation you are defining. Enter the region's Internal Revenue Service Code. Enter a Description for the region if it is not predefined. Enter for the Reporting Limit Amount the minimum amount

Payables uses to determine whether to report on a supplier's payments. If you do not enter an amount, Payables assumes the limit is zero.

Select the Method that Payables uses to compare actual payments to the Reporting Limit Amount:

o Compare Individually. Compare to the Reporting Limit Amount the sum of payments for each 1099 MISC Income Tax type.

o Compare Sum. Compare to the Reporting Limit Amount the sum of payments for all 1099 MISC Income tax types.

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AP Basic Chapter 2o Same as Federal. Ignore the region Reporting Limit

Amount, and instead use the Federal reporting limit, which Payables has predefined as $600.

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AP Basic Chapter 2

Identify a supplier as 1099 Federal and State reportable via the Tax Reporting region Tab of the Suppliers window:

Suppliers\Entry: Select the Tax Reporting region:

Use this form to enter 1099 supplier information. Select the Federal and State Reportable checkboxes. Select an Income Tax Type. For example; this supplier is an income tax type, of MISC7 which is Non-employee compensation.

Enter a 1099 Reporting Name

PAGE: 43

Process 1099 Suppliers: Create 1099 Payment information

Create 1099 Payments When you enter Invoices for 1099 Suppliers, enter an Income Tax

Type and Income Tax Region for appropriate Invoice Distributions.

Approve and pay invoices assigned with 1099 payment information.

PAGE: 44

Process 1099 Suppliers: Identify and Resolve 1099 Exceptions:

Identify and Resolve 1099 Exceptions:

Submit for each reporting entity the 1099 Exceptions Report to identify the following exceptions:

o 1099 invoice distributions with no Income Tax Typeo 1099 invoice distributions with invalid or missing income

tax regions

Submit the 1099 Supplier Exceptions Report to identify and resolve exceptions including the following:

o Suppliers with null or invalid state abbreviations.o Suppliers that will be flagged as incomplete in the 1099

Electronic Media report.o Suppliers with missing or non-standard Tax Identification

Numbers.

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Process 1099 Suppliers: Generate 1099 Reports:

Generate 1099 Reports: 1099 Forms. 1099 forms report on the total 1099 MISC

payments for a particular 1099 supplier. Generate 1099 forms for each tax reporting entity in your organization. Submit to the Internal Revenue Service for each 1099 supplier, and send a copy to the supplier.

1096 Form. A 1096 form is a summary of each 1099 form type you transmit on paper. Payables generates the report on a preformatted form from the Internal Revenue Service. Submit to the Internal Revenue Service for each 1099 MISC type paid during the calendar year.

1099 Electronic Media. If you submit 250 or more 1099 forms, the Internal Revenue Service requires you to file your 1099 payment information on magnetic media or electronically.

Form 941. Send this form to the Internal Revenue Service to report total supplier withholding for a quarter. Your Accounts Payable department should create a manual payment for the total amount withheld, and you should remit this amount and the 1096 Form to the Internal Revenue Service.

1099 Payments Report. Run this report to review 1099 payments by supplier.

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Documents

AP Suppliers