1099 reporting in business central


Form 1099 is the miscellaneous income tax form, used to prepare and file income information that is separate from wages, salaries, or tips. For nonprofits, you must issue this form when you contract individual workers and vendors to complete work for the organization.

important things to consider


No format changes were required for 2023 so users should select the 2022 report formats where multiple versions are available.


1099 forms cannot include data from transactions generated outside of the Invoice system in Business Central. If you switch to akoyaGO/Business Central mid-year, you will need to aggregate the data from your former and current system to generate forms outside of Business Central.


1099 transactions include Document Type Invoice and/or Credit Memo that are closed (either by applying a payment or refund) during the tax year.


1099 tax forms that can be printed from Business Central directly include:

  • 1099 Div
  • 1099 Int
  • 1099 Misc  Miscellaneous income
  • 1099 NEC  Non-employee compensation


The 1096 form (summary for 1099s) can also be generated within Business Central. See the relevant knowledge article for instructions on how to set up and generate 1096 forms.



Marking a Vendor/Payee for 1099 by Default 


On the Payee Card, scroll to the Invoicing section. (If the section is not expanded, choose "Show More" to see all fields in the section.)

Select the appropriate 1099 code in the IRS 1099 Code field (It is also recommended to enter the Federal ID No. here so that forms may be printed directly from Business Central.)


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Note: The code "MISC" will not render a 1099 form but will render on the 1099 Information report; if possible, use a specific 1099 code, such as “NEC-01” (Nonemployee compensation) or "MISC-01" 


The code selected on the Payee card will auto populate all future Invoices created for the payee. The code can also be modified at the Invoice level














Optional: If you modify the IRS 1099 Code assigned to a Payee and there are posted entries using the former code, you will be prompted to update the existing lines, if desired.



Marking a Purchase Invoice for 1099


While creating a Purchase Invoice (prior to posting), scroll down to the "Invoice Details" section of the form, (If the section is collapsed, choose "Show More" to see all fields in the section)


If the Vendor is set up to receive a 1099 by default, the purchase invoice IRS 1099 Code field should already be marked. You can mark or unmark specific invoices as needed. Select (or clear) the appropriate 1099 code in the IRS 1099 Code field





Note: The code "MISC" will not render a 1099 form but WILL render on the 1099 Information report; expenses must be categorized using a specific 1099 code, such as "MISC-03" (other income) to appear on the 1099 form


Changing the 1099 Status of a transaction after posting


Open the Payee recordselect Vendor menu, then select Ledger Entries


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Locate the Invoice line (Document Type = Invoice) to be updated, then change the value in the IRS 1099 Code field and the IRS 1099 Amount field. (You may need to select "Edit List" to change the value)



Note: Only items processed as Invoices will be included in the 1099 reports. Transactions created via journal entry/imported data will not be included in 1099 form totals, even if a 1099 code is added in the vendor ledger.



Preparing Annual Forms


  1. Search for and select 1099 Form Boxes




If there are updates needed for the 1099 forms you will see a message indicating an update is required. Click on the “Schedule an update of the form boxes” link and follow the instructions to schedule an update.


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Always be sure to check the IRS website for annual changes to 1099 forms


Previewing Vendor 1099 Information


From the Payees section:


  • Click on the Reports menu (this may be located under More Options if your menus are currently condensed)
  • Click on the General category
  • Select Vendor 1099 Information



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In the following window, enter your preferred Date Filter. If desired, filter for a specific vendor. The report will summarize 1099 amounts by type per vendor. 


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printing 1099 forms


No format changes were required for 2023 so users should select the 2022 report formats where multiple versions are available.


In the main magnifying glass in the upper right-hand corner: Search for “1099”. Under the "Go to Reports and Analysis" section, select the name of the desired report, such as 1099 Nec.






Enter the Calendar Year. If desired, filter for a specific Vendor No.


Select Preview or Print. 





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