• Michael Intravartolo

1099 Processing - Reference Guide - Microsoft Dynamics NAV


Vendor Setup

Select Financial Management -> Payables -> Vendors. Each vendor can have a default 1099 Code defined on the Payments tab.


1099 Transaction Processing

When a new Purchase document is created, the 1099 Code from the Vendor record defaults to the document header:


On each Purchase Line, there is a “1099 Liable” checkbox field that can be checked per document line. This box must be checked by the user when the document line is entered.


When the purchase invoice document is posted, the two highlighted fields below are recorded on the resulting Vendor Ledger Entry record.

While most fields on a ledger entry type record within NAV are not editable, the “1099 Code” and “1099 Amount” fields on the Vendor Ledger Entry record are editable. To correct incorrectly posted invoices and/or payments posted throughout the year, simply update the values here prior to printing the 1099 reports.


Next, the open Vendor Ledger Entry will be paid via a Payment Journal.

NOTE: 1099 reporting and filing is based on paid invoices during a calendar year, thus, only invoices paid to the vendor will be considered within the 1099 reporting.


Note that the posting of the Payment Journal to pay the invoice resulted in a new “Payment” Vendor Ledger Entry being created. The 1099 fields are populated on this new Vendor Ledger Entry and this will be used for 1099 reporting.


1099 Reports and Forms

To review a list of vendors with 1099-able payments made during the year, select Financial Management -> Payables -> Reports -> Vendor 1099 Information.



To print the 1099 forms for a Calendar year, select Financial Management -> Payables -> Documents -> 1099 Misc (or 1099 Int, or 1099 Div). Select the Calendar Year and print the form:

Vendor 1099 Magnetic Media Report

Use this report to electronically file federal 1099 forms. The form information exported by this report is the same as the print reports for 1099 forms. These include 1099-DIV, 1099-INT and 1099-MISC.

The report uses the codes that apply to the form amount boxes from the IRS 1099 Form-Box table. Regulatory changes affecting this report and the table data are generally handled in end of year updates.

The codes from the IRS 1099 Form-Box table are mapped to the form boxes in the file layouts of this report, so the table data and report version for a particular tax year must be in agreement; if any custom codes are added to the table these must be mapped to the form boxes inside this object.

Select Financial Management -> Payables -> Periodic Activities -> Vendor 1099 Magnetic Media:


On the Vendor Filter tab, set the filter on the range of vendors to be included in the file. Then, populate the Options tab with data.

Upon selecting OK, the system will create a file called “IRSTAX” in the directory specified in the “Enter Data Path” field.

Below is a sample of the file output:


In the example above, it is hard to decipher due to the file format, but the $2000.00 payment made to London Postmaster is included in this file as highlighted by the red box.


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