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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

December 6, 1999

MEMORANDUM SA 00-17

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

Calendar Year 1999 - 1099 Processing

The AFS 1099 process will be run the morning of December 29, 1999. This process will create the 1099 Table and reports. Agencies should begin reviewing and processing manual additions, changes, and deletes to their 1099 data on the morning of January 3, 2000, continuing through the close of business (COB) January 17, 2000. All manual adjustments must be entered in AFS by COB January 17, 2000. The 4G01 1099 Turnaround Report and the 4G02 1099 Adjusting Transactions by Vendor Report will by placed in BUNDL current reports under mail code "ISFAFS" on December 29, 1999, for a period of 30 days. The reports are sorted based on the agency type used on the AGC2 table in AFS. The reports will be archived for a period of three years.

Each agency is responsible for retrieving and printing their portion of each report and must ensure that the information listed on the tables and reports is correct. It is the responsibility of the agency to make the necessary manual adjustments directly to the 1099 tables after reviewing the 1099 table and BUNDL reports. The 1099 tables will be created for ALL 1099 reportable payments, regardless of amounts. When the 1099 table entries are processed to create the 1099’s on January 17, a 1099 will only be generated for the vendors paid $600 or more during the 1999 calendar year, or to those vendors subject to backup withholding, regardless of income amounts. The 1099 forms will be sent to the agencies by this office on January 21, 2000. Mailing instructions will accompany the forms. The 1099’s and the magnetic tape sent to the Internal Revenue service (IRS) will generate from the information on the 1099 table as of January 17, 2000. Should it be necessary to correct the 1099 information after January, follow the directions in the "1999 Instructions for Forms 1099, 1098, 5498, and W-2G" IRS publication available through your local IRS office.

The 1099 process includes all transactions with effective dates January 1, through December 31 of the calendar year being reported that have issued checks. Since the 1099 process for calendar

Year 1998 was run on January 6, 1999, it included some checks issued in January 1999. Those checks will not be included in the 1099’s issued in January 2000. Some agencies manually corrected their 1998 1099’s or adjusted the 1099 table to exclude the payments that were issued in January 1999. If your agency processed corrections for 1998 1099’s to exclude any January payments, the 1099 table this year will have to be adjusted to include those payments

If you have paid another state agency using their 1099 reportable vendor code and a 1099 reportable object code, then you need to delete the 1099 table entry. This will also apply to payment vouchers that agencies input to their own 1099 reportable vendor code.

In order for the system to generate entries on the 1099 table and on reports, the following criteria must be met:

1. The agency type must exist on the AFS AGTP table, and a 1099 reportable master vendor record must exist for the FEIN associated with the agency type on the AGTP table.

2. The vendor code to which payments were issued is 1099 reportable.

3. The payments were coded using a 1099 reportable object code.

4. The FEIN associated with the vendor has one and only one master vendor code.

MANUAL ADJUSTMENTS TO THE 1099 TABLE

For manual adjustments to the 1099 table, you must first log on to AFS regardless of which subsystem of ISIS generated the payment. All manual adjustments will require an entry on the 99TX table of AFS before an entry is added, changed, or deleted from the 1099 table. New entries to the 1099 table require that the FEIN exists on the AFS MVEN table. Vendors may be made 1099 reportable and the master vendor indicator may be changed to "Y" during the period of January 3, through January 17, 2000. OSRAP will not change a vendor to non-1099 reportable or change a vendor’s master vendor indicator to "N" during the period of January 3, through January 17, 2000. These types of changes will be held until after the 1099 process is complete.

Adding Text to the 99TX Table

1. Type "99TX" in the TABLEID.
2. Press Enter.
3. Type "A" in ACTION
4. Enter the following data in the corresponding fields:

a. YR – 2 digits. Enter 99 for calendar year 1999.
b. RETURN TYPE – 1 character. Enter "A" for 1099-MISC.
c. AGCY TYPE – 4 characters. Enter your agency type as determined from the AGTP table in AFS for FY 00 in the format, A***.
d. FEIN/SSAN - 9 digits. Enter the Tax Payer Identification Number associated with the vendor to whom adjustments to the 1099 reportable income are to be made. (The FEIN/SSN from the body of the AFS VEN2 or AGPS VENC tables).

NOTE: There must be a MVEN record for the FEIN/SSAN entered.

e. INCOME TYPE – 1 character. Payee income type being adjusted. 1= Rents 6= Medical 7= Non-Employee Compensation C= Attorney Gross Proceeds.
f. TEXT – 70 characters per line/11 lines. An explanation of the adjustment being made. For example, "Vendor not paid with 1099 reportable object code in error".

NOTE: Text does not "wrap".

g. LINE – 3-digit line number for the text entered. Use even digits starting with 002, 004, 006, etc.

5. Press Enter. Receive the message "ALL LINES ADDED" at the bottom of the screen. If error message appears, correct the errors and repress ENTER.

Adding a New Entry to the 1099 table (Enter one line of data per income type).

1. Type "1099" in the TABLEID.
2. Press Enter.
3. Type "A" in ACTION.
4. Enter the corresponding data in the following fields:

a. CAL YR – 2 digits. Type "99" for calendar year 1999.
b. RET TYPE – Enter "A" for 1099-MISC.
c. AGCY TYPE – 4 characters. Enter your agency type as determined from the AGTP table in AFS for FY 00 in the format, A***.
d. FEIN/SSAN – 9 digits. Enter the Tax Payer Identification Number associated with the vendor to whom adjustments to the 1099 reportable income are to be made. (The FEIN/SSAN from the body of the AFS VEN2 or AGPS VENC tables).

NOTE: There must be a MVEN record for the FEIN/SSAN entered.

e. INCOME TYPE – 1 character. Payee income type being adjusted. 1= Rents 6= Medical 7= Non-Employee Compensation C= Attorney Gross Proceeds.
f. MISAPPLIED AMT – 15, 2 digits. Adjustment amounts from a transaction which is recorded in AFS, and/or
g. OUTSIDE AMT – 15, 2 digits. Adjustment amount attributable to a transaction not recorded in ISIS (i.e., agency side system).

NOTE: Enter either the decimal place or include a value for cents in the MISAPPLIED AMT and OUTSIDE AMT fields. For example, 2815 was entered and the system read it as $28.15. If 281500 is entered, the system will interpret this as $2815.00.

5. Press Enter. Receive the message "ALL LINES ADDED" at the bottom of the screen. If error message appears, correct the errors and repress ENTER.

6. Verify that the ADJUSTED 1099 field contains the correct amount.

NOTE: The "1099 Amt Revised field" is optional. There are no edits on the amount entered. You may use it to compare expected totals to the system generated total in the "Adjusted 1099 field"

Changing an existing 1099 Table Entry

1. Enter "1099" in the TABLEID.
2. Press Enter.
3. Type "G" in the ACTION to access the applicable 1099 record.
4. Enter the corresponding data in the following fields:

a. CAL YR – 2 digits. Type "99" for calendar year 1999
b. RET TYPE – Enter "A" for 1099-MISC.
c. AGCT TYPE – 4 characters. Enter your agency type as determined from the AGTP table in AFS for FY 00 in the format, A***.
d. FEIN/SSAN – 9 digits. Enter the Taxpayer Identification Number associated with the vendor to whom adjustments to the 1099 reportable income are to be made. (The FEIN/SSAN from the body of the AFS VEN2 or AGPS VENC tables).

NOTE: There must be a MVEN record for the FEIN/SSAN entered.

e. INCOME TYPE – 1 digit. Payee income type being adjusted. 1= Rents 6= Medical 7= Non-Employee Compensation C= Attorney Gross Proceeds.

5. Press Enter. The requested record will appear on the screen.

6. Types "C" in the ACTION.

a. MISAPPLIED AMT – 15, 2digits. Adjustment amounts from a transaction which is recorded in AFS, and/or
b. OUTSIDE AMT – 15, 2 digits. Adjustment amount attributable to a transaction not recorded in ISIS (i.e., agency side system).

NOTE: Enter either the decimal place or include a value for cents in the MISAPPLIED AMT and OUTSIDE AMT fields. For example, 2815 was entered and the system read it as $28.15. If 281500 is entered, the system will interpret this as $2815.00. If the amount recorded should be reduced, precede the amount with the negative sign (-). For example, you wish to reduce a vendor’s income by $234.00. Enter –234.00 or –23400.

7. Press Enter. Receive the message "ALL LINES CHANGED" at the bottom of the screen. If error messages appear, correct the errors and repress ENTER.

8. Verify that the ADJUSTED 1099 field contains the correct amount.

Deleting an Existing 1099 Table Record

1. Type "1099" in the TABLEID.
2. Press Enter.
3. Type "G" in the ACTION.
4. Enter the corresponding data in the following fields:

a. CAL YR – 2 digits. Type "99" for calendar year 1999.
b. RET TYPE – Enter "A" for 1099-MISC.
c. AGCT TYPE – 4 characters. Enter your agency type as determined from the AGTP table in AFS for FY 00 in the format, A***.
d. FEIN/SSAN – 9 digits. Enter the Taxpayer Identification Number associated with the vendor to whom adjustments to the 1099 reportable income are to be made. (The FEIN/SSAN from the body of the AFS VEN2 or AGPS VENC tables).

NOTE: There must be a MVEN record for the FEIN/SSAN entered.

e. INCOME TYPE – 1 digit. Payee income type being adjusted. 1= Rents 6= Medical 7= Non-Employee Compensation C= Attorney Gross Proceeds.

5. Press Enter. The requested record will be displayed on the screen.
6. Type "D" in the ACTION.
7. Press Enter. Receive the message "ALL LINES DELETED" at the bottom of the screen. If error message appears, correct the errors and repress ENTER.

Please provide copies of this memorandum to the individuals at your agency which actually perform the tasks detailed above. Should you have questions concerning this memorandum, please call the OSRAP Help Desk at (225) 342-1097. Remember, all OSRAP memorandums and forms may be accessed through our home page at http:\www.doa.state.la.us\osrap\osrap.htm.

FHK:clm


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