1099-Misc Changing tax code

[Former Member]

A custom program/transaction (Z_RFWT0020) needs to be developed using program RFWT0020 provided by SAP.

This transaction code can be used two ways:

1) To update transactions already posted without withholding tax information after the withholding tax fields have been updated for the vendor so that the company can issue the vendor a 1099-MISC.

2) To update transactions already posted with withholding tax information after the withholding tax fields have been updated with tax type NA and tax code 99 for the vendor so that the vendor will NOT receive a 1099-MISC.

Steps:  Z_RFWT0020 - TO UPDATE W/T TRANSACTIONAL DATA 0NCE A VENDOR HAS BEEN CHANGED TO TURN ON FOR 1099-MISC REPORTING 

Summary:

Step	Activity	Dependency
A.	Change Vendor Master
B.	Populate WHT data for Invoice docs	A
C.	Populate WHT data for payment docs	B
D.	Check Z_1099 Report

B) Updating Invoice Docs with Withholding Tax information:

This procedure is followed when a vendor, which previously had not been set up for 1099-MISC reporting, is updated because the company must issue a 1099-MISC.

Selection Criteria:

CC: 100

Date range:  1/1/06 to 12/31/06

Upload the selected list of ZPIs

Radial button: Creation of data

Check the box: only create documents, no withholding tax data

1)  Radial button:  Invoice docs / test run

 

2)  Uncheck the test run button, leaving the "invoice docs" radial button checked 

C) Updating Payment Docs with Withholding Tax information:

1)  Radial button:  Payment docs / test run

2)  Uncheck the test run button, leaving the payment docs radial button checked  (this updates the payment docs)

D) Run Z_1099 for the same list of vendors -those with payments in 2006 will show 

Steps:  Z_RFWT0020 - TO CHANGE THE WITHHOLDING TAX CODES IN THE W/T TABLE TO NA TO TURN OFF 1099-MISC REPORTING for vendors who were mistakenly set up by CBG  for receiving a 1099-MISC. 

Summary:

Step	Activity	Dependency
A.	Change Vendor Master and replace WHT type FE with NA and W/tax code with 99. The liable box remains checked.
B.	Change WHT data for Invoice docs	A
C.	Change WHT data for payment docs	B
D.	Check Z_1099 Report

B) Change Invoice Docs with Withholding Tax Type/code NA/99:

Selection Criteria:

CC: 100

Date range:  1/1/06 to 12/31/06

Upload the selected list of ZPIs 

Radial button: Change of withholding tax codes

Check the box: only create documents, no withholding tax data

1)  Radial button:  Invoice docs / test run

2)  Uncheck the test run button, leaving the invoice docs radial button checked 

C) Updating Payment Docs with Withholding Tax Type/Code NA/99:

1)  Radial button:  Payment docs / test run

2)  Uncheck the test run button, leaving the payment docs radial button checked  (this updates the payment docs)

D)  Run Z_1099 for the same list of vendors - no 1099-MISC DATA should appear.