To enter vendor tax information:If a vendor is not including tax in the price they charge you, you are legally required to track the total dollar amount you have paid them so that you can send them and the government a 1099 form at the end of the year. Use the Vendor Tax Information screen to enter a vendor's 1099 tax information, so that the system includes that vendor in the1099 Summary Report of payments to vendors.
To enter vendor tax information:From the Files menu, select Vendor to display the Vendor Maintenance screen.
In the Vendor /New field, enter the vendor's name to display the vendor record.
Use the Add'l Data hot key to display the Additional Info hot keys.
Use the Tax Information hot key to display the Vendor Tax Information screen.
In the Vendor 1099 Tax ID field, assign the vendor's 1099 tax number. This vendor will be included in the1099 Summary report.
In the W-9 Forms Received Date field, enter the date you receive W-9 forms from this vendor.
In the Disallow Tax Capitalization field, enter one of the following:
Y – Does not allow tax capitalization, which is similar to freight capitalization.
N – Allows tax capitalization to distribute tax evenly for items on a purchase orders when calculating landed average cost for this vendor. This is the default.
Note: The Capitalize Tax on Purchase Orders control maintenance record must be set to Y to enable this functionality.
Press Esc to save your changes and return to the Additional Info hot keys.
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