AP 1099 Extract
Written by Brandy Burch
Updated at March 13th, 2025
Table of Contents
Overview
The AP 1099 extract works as it always has to report vendor payments as non-employee compensation. The difference is that instead of the extracted populating the 1099-MISC Payee Maintenance, it now populates the 1099-NEC Payee Maintenance. All other options still work as they have in the past.
Please see the client portal for training videos and webinars on the 1099 process. If you do not have access to the client portal, please contact the Customer Success Team.
Vendors that typically receive a 1099-MISC (Tax Class):
- Individual/Sole Proprietor/Single LLC
- Partnership
- Trust/Estate
- LLC-Partnership
- Other
Extract AP 1099 Entries - Process
- Click on the Review Vendor Coding button to verify the accuracy of the extract. Run the "New Vendors For This Year" report and then the "Vendor Reporting" option(s) to look for errors that should be corrected.
- Choose the appropriate Action to Perform Prior to Extracting option.
- Select needed Include/Exclude options if necessary
- Choose Extract Source
- Click on the Extract button. (All AP accounts will be included in the extract.)
- If necessary, correct any errors and re-extract AP 1099s; otherwise, the system will inform you how many records were extracted successfully.
1099 Extract AP
| Action to Perform Prior to Extracting |
|
| Include Corporations in extract (Attorney Corps/Box 14 Attorney Proceeds are automatically included regardless) | If checked, vendors with a Tax Class of C. S, LLC-C and LLC-S Corporation will be included in the extract. |
| Omit vendors with amounts less than $10 for box 2 (Royalties) and less than $600 for Box 1,3,5,6,7 and No Withholding |
This option will only include the mentioned vendors if unchecked. Vendors that do not meet these requirements will not be extracted. It is recommended that you review the "Vendor Reporting-Less than $10 Royalty and $600 " accessed via the "Review Extract" button, click on "Vendor Reporting", and choose the "Less than $10 Royalty and $600 Working" option to ensure that these vendors are being reported correctly. |
| Extract Source |
Bank Rec: Extracts based upon check dates from Check History in Bank Reconciliation. G/L (Paid Invoices): Extracts based upon the vendor check box selection in your Sub-Account Maintenance 1099 Options. This option pulls all payment records from the AP invoice history. This source is the required extract if your vendors have multiple 1099 codes. |
| Review Vendor Coding |
This option allows the user to create and review the AP 1099 Review Report to ensure accuracy of the AP 1099 extract. Taking the defaults will provide a preview of what could be extracted. There are two types of reports that can be reviewed:
NOTE: If the Review Coding Vendor does not match the 1099 Payee Listing, the primary reason is that there were manual changes made to the 1099 Payee Maintenance. Another reason could be that the vendors were coded to multiple 1099 boxes but the Bank Reconciliation extract was used. Also see: Common 1099 Problems |
NOTES
- You must decide what kind of extract should be used to create the 1099s. However, these extracts can be layered by choosing an Action Prior to Extracting that does not Delete all 1099 data from all systems.
- The 1099 extract is based on the original checks issued. A replacement check is not considered in the 1099 extract unless the original check was voided. This also applies to the Review Extract.
- Corporations will not be extracted unless the "Include Corporations in Extract" box is checked. However, Attorney corporations are automatically included in the extract.
- Vendors paid by Credit Cards will not pull on the 1099 Extract since you paid the credit card company, not the vendor.
Once the extract has been completed, go to the Payee Maint menu under 1099-MISC or 1099-NEC.