NCAS

Correcting Withholding for 1099 Transactions

Use this procedure when the invoice should still be 1099 reportable and the payment was erroneously withheld.

1. If the vendor is a non-trade vendor, type vpn in the next function field and press Enter to access the Vendor Payable Information (VPN) screen.
2. Verify that the tax id expiration date field has an expired date.
3. Verify that the 1099 withholding rate field contains the appropriate withholding percentage.
4. Type vdd in the next function field and press Enter to access the Vendor Default Distribution (VDD) screen.
5. Verify that the 1099 withhold field contains the appropriate indicator.

See Procedure 19: Setting Up a Non-Trade Vendor for Backup Withholding to set up the tax id expiration date and 1099 withholding rate fields, if necessary. If the vendor is a trade vendor, contact the NCAS Support Services at 875-HELP to verify the information.
6. Type cde in the next function field and press Enter to access the Control Document Entry (CDE) screen.
7. Type your paying entity (XXPT or XXPN) in the pay entity field.
8. Type the control group number in the control number field.
9. Type .00 in the cntl amt field. Since the invoice is a zero-dollar invoice, the control group total will be zero.
10. Type your first and last initials in the appl area field.
11. Type d in the entry method field to indicate this is a direct invoice.
12. Type your bank account payment code in the bank acct pymt ind field and press Enter to access the Invoice Worksheet 1 (IWS-1T) screen.

Do NOT type ZRO in the bank acct pymt ind field.
13. Type the invoice information on the IWS-1T screen. Use the same vendor as the original invoice.
14. Type net in the terms code field.
15. On line 0001, type the positive dollar amount in the amount/percent field.
16. Type the company number in the co field.
17. Type the account number in the account field.
18. Type the center number in the center field.

Use the same accounting distribution as the original invoice. Do NOT type a 1099 code for this line.
19. On line 0002, type the negative dollar amount in the amount/percent field.
20. Type the company number in the co field.
21. Type the account number in the account field.
22. Type the center number in the center field.

Use the same accounting distribution as the first line.
23. Type st in the 99 field.
24. Type r in the request field and press Enter to access the Invoice Worksheet 2 (IWS-2T) screen. Verify that the bank pymt field contains your BAP code (not ZRO).
25. Type n or next in the request field and press Enter to balance the invoice.
26. Fax the ZERO DOLLAR PAYMENT AUTHORIZATION FORM to NCAS Support Services (919-981-5561).
27. They will temporarily change the policy to allow zero dollar checks to print.
28. After the check has been produced, access the Invoice Maintenance 1 (IMW-1T) screen and delete the ST in the 1099 field from the zero dollar invoice.