Handling expenses for 1099 vendors

[Former Member]

Hi,

We are live with ECC 6.0 and have a requirement that the company business expenses, such as travel etc. that are paid out to 1099 vendors must NOT be included in the 1099 report at year end. In the old system, we handled this using two vendor master data created for every 1099 vendor, one to be used to enter expenses only and the other one for 1099 reporting. Does anyone have a solution for this problem in SAP using single vendor master data per 1099 vendor?

Thank you,

Kyung

[Former Member]

Hi,

The 1099 report considers only those invoices that have withholding tax code set on the invoice. The vendor master has a default withholding tax code, but that can be changed during invoice entry.

If you do not enter the withholding tax code at the invoice time, these invoices will not be included in the 1099 report.

Regards

Sharabh

[Former Member]

Hi Sharabh,

Thank you very much for your reply. Yes, you have answered my question.

But now in testing we are finding that it works for trx FB60 but for trx MIRO, the system does not show the additonal tab for withholding tax details.

Is there anything else we need to do to make the MIRO work like FB60? We have set up the vendor master with withholding tax code and social security number.

Appreciate your reply.

Best regards,

Kyung

[Former Member]

Hi Kyong,

Unfortunately MIRO does not work like FB60 as far as WH is concerned. I am glad that there is a solution.

After you post the MIRO invoice, go to FB09 and remove the WH tax code and WH base amount. This invoice will then be excluded from 1099 report.

You can also mass replace using LSMW or CATT if there are lot of invoices coming through MIRO.

Regards

Sharabh

[Former Member]

Hi Sharabh,

Thanks again for your reply. I have two more questions:

Do you know whether there is a way to switch on Extended withholding tax functionality to make the MIRO transaction come up with the withholding tax detail tab?

Right now the withholding tax detail information is stored at the invoice header level. Is there anyway to make it at the line item level so that we can enter both expense items and 1099 compensation items in one invoice and specify withholding tax details at the line item level?

Thank you & best regards,

Kyung

[Former Member]

how did you resolve this. I have a same situation that we would ener an invoice for both itmes that are subject to with hold and not-subject for 1099. Please let me know