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State of Louisiana DIVISION OF ADMINISTRATION Office of Statewide Reporting and Accounting Policy

M. J. "Mike" Foster, Jr. Governor

Mark C. Drennen Commisioner of Administration

November 9, 1999

MEMORANDUM SA 00-15

TO:  Fiscal Officers  
All ISIS Agencies  
FROM:  F. Howard Karlton CPA, Director 
SUBJECT: 

Payments to Non-1099 Reportable Vendors Using 1099 Reportable Objects


Attached is an Infomaker report for your agency listing non-1099 vendor codes paid using 1099 reportable objects. The expended amounts shown on the report represent the amount paid to each vendor by your agency as of November 4, 1999. This amount cannot be used to indicate whether a 1099 would generate from your agency upon changing the 1099 indicator since the 1099 process will not be run until December’s monthly close.

In January, 1099’s will be issued for 1099 vendors paid $600 or more per agency type using 1099 reportable objects. A magnetic tape of 1099’s issued will also be sent to the Internal Revenue Service (IRS). 1099 reportable vendors have a 1099 indicator set to "Y" on the VENC screen in AGPS. Each 1099 vendor must have a master vendor indicated on the vendor file. Payments to each vendor code under a FEIN/SSN will be combined into one 1099 to the master vendor by agency type. The agency type is defined on the AGTP table in AFS and is listed on the AGCY table in AFS. Multiple agencies may be combined by use of one agency type. A 1099 will only be issued to a vendor from your agency type if the total of the payments is $600 or more. 1099 reportable objects are denoted by a return type in the 1099 Type column of the OBJT table in AFS. On December 30, 1999 the 1099 table and turnaround reports will be available to agencies for 1099 reportable vendors paid with 1099 reportable objects. The 1099 table will be available to agencies on January 3, 2000. The agencies will have until January 17, 2000 to correct the information on these reports using the 1099 and 99TX tables in AFS before the 1099’s are issued. Information and complete instructions regarding the 1099 process will be sent to agencies at a later date.

To ensure the 1099 information reported to the IRS is as complete as possible, please verify that the 1099 status of the vendors listed on the attached report is correct.

If a vendor listed should be 1099 reportable, please submit a Payee Vendor Update form to change the vendor’s 1099 indicator to "Y". Refer to the vendor change procedures issued to your agency if more information is needed. Changes to these indicators alone do not have to be submitted to the Office of State Purchasing or the Office of Contractual Review. Be sure to change the primary indicator to "N", and the master vendor indicator to "Y" for the primary location of the FEIN/SSN.

Please distribute copies of this memorandum to the personnel at your agency who are responsible for processing these transactions.

Should you have questions concerning this memorandum, please contact the Vendor Section at (225) 342-6356. Remember, all OSRAP SA memorandums and forms may be accessed through our home page at http:\\www.doa.state.la.us\osrap\osrap.htm.

Attachments

FHK:clm

C: Ms. Judy Davidson


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