1099 balances and unapplied payments

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We have several vendors that require us to make pre-payments for PO orders. We have a few of these payments where we haven't yet received the corresponding invoice before the 1099 deadline, and we're not sure how to address them. Since no invoice has been received/applied, that remaining payment balance is not included in our 1099 totals for that vendor. Also, once the 1099 process has been run, those 2019 payment records appear to be essentially locked down and no invoices can be applied, until we "unsubmit/correct" our 1099's.

How can we deal with this issue? do we have to create a dummy transaction to apply these payments to, and then an offsetting DM to use for the invoices we'll receive later in 2020?

I would think some kind of error message should be triggered in this case, when 1099's are run saying that "there are unapplied payment balances for X vendors, all balances must be applied for 1099's to calculate properly" or something. Especially since moving forward essentially "breaks" those payment records.

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  • +1
    verified answer

    Got the SQL script from Support and it wasn't that helpful. It wipes all the submission records from the table, which seems like you'd need to start from scratch to me. There was no script to rebuild the data in the table. the status value in the submission table means nothing, as it was sitting with the value 3 (new) and not 0 (submitted), the fact that the record exists is enough to block anything from happening with 2019 payments after 1099's have been generated.

    We ended up using SQL to change the year in the submission table, create CM transactions to apply to the unapplied payment balances, link the application table back to the submission table with appropriate key values, update the box submission table, and revert the year back to 2019. Then we'll need to create DM transactions to "resurrect" those unapplied balances for 2020.

    such a pain.

  • 0 in reply to Mike Bresnan

    Apparently, if you apply payments while you are posting the invoice, it completely ignores this control and you are able to do so regardless of the existence of any 1099 flags. This should probably be an optional control, that i'd prefer to turn off.

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