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

MEMORANDUM SA 99-18

TO:		Fiscal Officers
		All ISIS Agencies
FROM:		F. Howard Karlton, CPA
		Director
SUBJECT:		Calendar Year 1998 1099 Pocessing

The AFS 1099 process will be run the night of January 6, 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 7, 1999, continuing through the close of business (COB) January 18, 1999. All manual adjustments must be entered in AFS by COB January 18, 1999. The 4G01 1099 Turnaround Report and the 4G02 1099 Adjusting Transactions by Vendor will be placed in BUNDL current reports under mail code ‘ISFAFS' on January 7, 1999 for a period of 30 days. The reports are sorted based on the agency type used on the AGC2 table of AFS. The reports will be archived for three years.

Each agency is responsible for retrieving and printing their portion of each report and ensuring that the information listed on the tables and reports are 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 1099s on January 18, a 1099 will only be generated for the 1099 table entries per agency type to vendors paid $600 or more during calendar year 1998 or those vendors subject to backup withholding, regardless of income amounts. The 1099s will be sent to the agencies by OSRAP on January 22, 1999. Mailing instructions will accompany the forms. The 1099s and the magnetic tape sent to the Internal Revenue Service will generate from the information on the 1099 table as of January 18, 1999. If it is necessary to correct 1099 information after January 18, follow the directions in the "1998 Instructions for Forms 1099, 1098, 5498 and W-2G" IRS publication available through your local IRS office.

In SA memorandum 99-12, agencies were informed of two new object accounts, 3435 - Legal Gross Proceeds and 3745 - Contract Atty-Gross Proceeds. You were told to code these objects on expenditure transactions to attorneys when the attorney's portion of the billing is not identifiable. If you made expenditures of this nature before the object accounts were created, you need to journal voucher the expenditures to these accounts. Remember, you must code the vendor number on the journal voucher lines to ensure that the journal voucher will correct the vendor's 1099 information. You were also told that all attorneys, individual and incorporated, are now 1099 reportable and should have their 1099 indicator changed on the vendor file to reflect the new IRS requirement.

Each year the 1099 process includes all transactions for the calendar year with effective dates January 1998 through December 1998 which have issued checks when the process is run. Since the process is run the night of the third working day in January, the 1099 table may include checks issued in January 1999 and will exclude some checks issued in January 1998. Some agencies manually corrected their 1997 1099's to exclude the payments which actually issued in January 1998. If your agency processed manual corrections for 1997 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, you need to delete the 1099 table entry. This applies to payment vouchers that agencies input to their own 1099 reportable vendor code as well.

For the system to generate entries on the 1099 table and 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 exit 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.
4. The FEIN associated with the vendor has one, and only one, master vendor code.

You must log on to AFS to process 1099 adjustments 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 7 through January 18, 1999. However, 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 7 through January 18, 1999. These types of changes will be held until after the 1099 process is complete.

Adding Text to the 99TX Table

1. If you are not on the 99TX table, type ‘N' in ACTION. If you are on the 99TX table, type ‘Y' in ACTION to obtain a     clear screen and proceed to step 3.

2 Type ‘99TX' in TABLEID.

3. Press Enter.

4. Type ‘A' in ACTION.

5. Enter the following data in the corresponding fields:

A. YR - 2 digits. Type 98 for calendar year 1998.

B. RETURN TYPE - 1 character. Type ‘A' for 1099-MISC.

C. AGCY TYPE - 4 characters. Type your agency type number as determined from the AGTP table of AFS for FY     99 in the format A***.

D. FEIN/SSAN - 9 digits. Enter the Tax Payer Identification Number associated with the vendor to whom adjustments     to 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 digit. Payee income type being adjusted. 1 = Rents, 6 = Medical, 7 = Non-Employee     Compensation, and C= Attorney Gross Proceeds.

F. TEXT - 70 characters per line/11 lines. Explanation of the adjustment being made. For example, "Vendor not paid with 1099 reportable object in error."

G. LINE - 3 digit line number for the text entered.

6. Press Enter. You should receive the message "ALL LINES ADDED" at the bottom of the screen. If error messages appear, correct errors and repress Enter.

Adding a New Entry to the 1099 Table (You will enter one line of data per income type.)

1. If you are on any other AFS Table, type ‘N' in ACTION and proceed to step 2. If you are on the 1099 table, type ‘Y' in ACTION to clear the screen and proceed to step 3.

2. Type ‘1099' in TABLEID.

3. Press Enter.

4. Type ‘A' in ACTION.

5. Enter the corresponding data in the following fields:

A. CAL YR - 2 digits. Type ‘98' for calendar year 1998.


B. RET TYPE - Type ‘A' for 1099-MISC.


C. AGCY TYPE - 4 characters. Type your agency type number as determined from the AGTP table of AFS for FY 99 in the format A***.


D. FEIN/SSAN - 9 digits. Enter the Tax Payer Identification Number associated with the vendor to whom adjustments to 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 digit. Payee income type being adjusted. 1 = Rents, 6 = Medical, 7 = Non-Employee Compensation, and C = Attorney Gross Proceeds.


F. MISAPPLIED AMT - 15, 2 digits. Adjustment amount 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:
You must either enter the decimal place or include a value for cents in the MISAPPLIED AMT and OUTSIDE AMT fields. For example, you entered 2815 and the system read this as $28.15. If you enter 281500, the system will interpret this as $2815.00.

6. Press Enter. The message ‘ALL LINES ADDED' should appear at the bottom of the screen. If error conditions exist, correct the errors and repress Enter.

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

Changing an Existing 1099 Table Entry

1. If you are on any other AFS Table, type ‘N' in ACTION and proceed to step 2. If you are on the 1099 table, type ‘Y' in ACTION to clear the screen and proceed to step 3.

2. Type ‘1099' in TABLEID.

3. Press Enter.

4. Type ‘G' in ACTION to access the needed 1099 record.

5. Enter the corresponding data in the following fields:

A. CAL YR - 2 digits. Type ‘98' for calendar year 1998.


B. RET TYPE - Type ‘A' for 1099-MISC.


C. AGCY TYPE - 4 characters. Type your agency type number as determined from the AGTP table of AFS for FY 99 in the format A***.


D. FEIN/SSAN - 9 digits. Enter the Tax Payer Identification Number associated with the vendor to whom adjustments to 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 digit. Payee income type being adjusted. 1 = Rents, 6 = Medical, 7 = Non-Employee Compensation, and C = Attorney Gross Proceeds.

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

7. Types ‘C' in ACTION.

A. MISAPPLIED AMT - 15, 2 digits. Adjustment amount 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:
You must either enter the decimal place or include a value for cents in the MISAPPLIED AMT and OUTSIDE AMT fields. For example, you entered 2815 and the system read this as $28.15. If you enter 281500, 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 want to reduce a vendor's income by $234.00. You will enter -234.00 or -23400.

8. Press Enter. The message ‘ALL LINES CHANGED' should appear at the bottom of the screen. If error conditions exist, correct the errors and repress Enter.

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

Deleting an Existing 1099 Table Record

1. If you are on any other AFS Table, type ‘N' in ACTION and proceed to step 2. If you are on the 1099 table, type ‘Y' in ACTION to clear the screen and proceed to step 3.

2. Type ‘1099' in TABLEID.

3. Press Enter.

4. Type ‘G' in ACTION.

5. Enter the corresponding data in the following fields:

A. CAL YR - 2 digits. Type ‘98' for calendar year 1998.


B. RET TYPE - Type ‘A' for 1099-MISC.


C. AGCY TYPE - 4 characters. Type your agency type number as determined from the AGTP table of AFS for FY 99 in the format A***.


D. FEIN/SSAN - 9 digits. Enter the Tax Payer Identification Number associated with the vendor for whom the 1099 record will be deleted. 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 digit. Payee income type being adjusted. 1 = Rents, 6 = Medical, 7 = Non-Employee Compensation, and C = Attorney Gross Proceeds.

6. Press Enter. The requested record will be displayed on the screen.

7. Types ‘D' in ACTION.

8. Press Enter. The message ‘ALL LINES DELETED' should appear at the bottom of the screen. If error conditions exist, correct the errors and repress Enter.

Please provide copies of this memorandum to the individuals at your agency that actually perform the tasks detailed above. Should you have questions concerning this memorandum, please contact Mr. Chris Meisner at (504) 342-6351. All OSRAP SA memorandums and forms may be accessed through our home page at http:\\www.doa.state.la.us\osrap\osrap.htm.

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