Why 1099 invoice is used

This forum is to discuss different features/issues of Oracle Financials modules ( GL - General Ledger, AP - Accounts Payable, AR - Accounts Receivable, FA - Fixed Assets & CM - Cash Management ).
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swetha80
Posts: 5
Joined: Mon Jan 28, 2008 4:25 pm
Location: India

Why 1099 invoice is used

Post by swetha80 »

Hi all,

What is the logic behind 1099 invoices and the usage of terminology 1099.
Further, Does it have different treatment in accounting ?
cnubandi
Posts: 101
Joined: Thu Jan 04, 2007 2:06 am
Location: India
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Post by cnubandi »

Hi Swetha,
In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers,<font color="red"><b>which is a tax-related designation for self-employed contractors in USA.</b></font id="red">. In the supplier window, you can designate suppliers as federally reportable. When you enter invoices for the supplier, you classify invoice distributions by 1099 MISC type using the Income Tax Type field. At year end, you can then report, in standard formats, your accumulated 1099 payment information to the Internal Revenue Service, other tax agencies, and your suppliers.
For each reporting entity, you assign one or more balancing segment values. When you submit 1099 reports for a tax entity, Payables sums up the paid invoice distributions that have these company balancing segment values in their accounts.
swetha80
Posts: 5
Joined: Mon Jan 28, 2008 4:25 pm
Location: India

Post by swetha80 »

thanks cnubandi
but is it used in Indian Context ?
cnubandi
Posts: 101
Joined: Thu Jan 04, 2007 2:06 am
Location: India
Contact:

Post by cnubandi »

Hi,

As per my knowledge concern the above answer is correct.Any how
<b>You need to go through
Payables User Guide page No 9-33 and the following previous posts in the forum
http://erpstuff.com/topic.asp?TOPIC_ID=2446
http://erpstuff.com/topic.asp?TOPIC_ID=1363</b>
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