Processing Non-vendor, Non-employee Payments

Complete the following steps to ensure that non-vendor / non-employee payments are correctly processed within Spectrum.

If you make payments in excess of $600 to non-employees, non-corporations, and/or trusts, the IRS requires you to prepare 1099-MISC/NEC forms and send copies of the forms to the IRS and vendor(s).
  1. Set up the payee in Accounts Payable > Maintenance > Vendors.
  2. In the Vendors > Properties window, complete the Payment due, Discount due, Insurance, Status, and Invoice defaults sections.
    Note: Make sure you set the Status field to Active.
  3. In the 1099-MISC/NEC section of the Properties window, select the 1099-Applicable checkbox and then complete the Alternative name field.
    Note: It is suggested that you complete the Alternative name field in case the vendor uses multiple names when submitting his/her 1099 information to the government.
  4. In the Amount indicator field, use the drop-down menu to select the 1099 form's payment indicator.
  5. Complete the Social sec # field or the Federal id # field.
    Important: Do not wait to until a later time or date to complete this step.
  6. Complete the vendor entry process and then click OK until you return to the Site Map.

    Complete the following steps during year end processing.

    1. On the Site Map, click Accounts Payable > Period End > 1099 Misc Form.
    2. Complete the 1099-MISC/NEC type and Vendor/cust code fields.
    3. Complete the remaining fields, pressing Enter to accept the software defaults when appropriate.
    4. Click the Build button to open the Build 1099-Mics Forms screen.
    5. In the Vendor field, enter the vendor code, double-click on this field or press F4 to select from a list of available vendor codes, or press Enter to accept the software default of ALL.
    6. In the From date field, enter the first payment date to be processed.
      Note: Normally, this is 01/01/YY.
    7. In the Through date field, enter the final payment date to be processed.
      Note: Normally, this is 12/31/YY.
    8. In the Minimum amount field, enter the minimum year-to-date payment amount for the vendor 1099s. Vendors with total payment amounts less than the amount entered in this field will not be updated to 1099 processing.
    9. Select Continue and then click OK.