About 1099s and inter-entity transactions

In a multi-entity company, one entity might create a bill and another entity might make the payment. Your Accounts Payable configuration determines which entity is associated with the 1099 amount for the vendor or employee.

Your company must be configured to Issue a separate 1099 per entity before you can generate separate 1099s by paying entity.

Report by billing entity

By default, the 1099 amount is associated with the billing entity. For example, a bill is created in Entity 1 and paid from Entity 2’s bank account. If Generate separate 1099s by paying entity is not selected, the 1099 amount remains associated with Entity 1.

Report by paying entity

Select Generate separate 1099s by paying entity on the Accounts Payable configuration page when 1099 amounts should be associated with the entity that made the payment.

For example, a bill is created in Entity 1 and paid from Entity 2’s bank account. If Generate separate 1099s by paying entity is selected, the 1099 amount is associated with Entity 2. Sage Intacct determines the paying entity using the bank account from which the payment was made.

Verify 1099 amounts

After changing your configuration, run the 1099 report and review the amounts for each entity before printing or filing forms.