This reference guide is intended for the Reportability Reviewer to review and update, as needed, the tax details then approve the 1099 and 1042 tax reportable invoices, correct paid 1099 and 1042 reportable invoices, and the year end process for issuing 1099 Copy B’s.

 

• Review Invoice, Update Income Tax Type (as needed) and Approve 1099 Reportable Invoice (if applicable)
• Review Invoice, Update Withholding Tax (if applicable), Populate Foreign Income Type Code and Services Performed Descriptive Flex Fields and Approve 1042 Reportable Invoice (if applicable)
• Correct Income Tax on Paid 1099 Reportable Invoice
  • Supplier Payment & IRS Tax Payment, both Uncleared and Cleared
• Correct Withholding on Paid 1042 Reportable Invoice
  • Supplier Payment & IRS Tax Payment Uncleared
  • Supplier Payment & IRS Tax Payment Cleared
• Update 1042 Invoice with correct tax reporting year for Sprintax Reports
• Year End Data Validation Process for 1099s
• Year End Process for 1099s – Creating Electronic Media Report for Diamond Solutions
• Year End Process for 1042s – Running Sprintax Reports

 

Refer to the FST Accounts Payable- Reportable Invoices slide deck to review the flow of any processes mentioned in this QRG.

 

1. Select Company Single Sign-On to access your Oracle account.  

 

2. Select the ‘Show All’ hyperlink from the notification icon of your homepage.

 

 

3. Select Worklist.  

 

4. Select the ‘Action Required’ notification for Invoice Approval.

      

 

5. Select the ‘Action Required’ notification for Invoice Approval.           

 

6. Select Edit from the Actions dropdown.     

 

 

7. Select Show All from the View dropdown of the Lines section. 

 

8. Select Income Tax in the shortcut banner.
9. Review Income Tax Type in the Income Tax area of invoice.

Note: If correction is not needed, proceed to Step 16.

10. If correction is needed, select Distributions button.        

 

Note:  If payment is for Stipends and MISC15a NT is displayed. Remove the MISC15a and tax region at the distribution level and check the “Stipend” checkbox.

 

11. Select the double chevron icon for the shortcut banner.
12. Select Income Tax in the shortcut banner.

      

 

13. Use dropdowns in the Income Tax section of Distributions to make updates as necessary.
14. Select Save and Close.

Note: Even after update is made at the Distribution level, the original 1099 tax income type code will still show at line level.       

 

15. Once the Income Tax Type has been corrected, select Save and invoice will still be in Validated status.
16. Select Approve the invoice from the Invoice Actions dropdown.

Note: If change is applicable to future invoices, contact Supplier Management Team to correct Supplier.   

 

You have now completed the process to review Invoice, update Income Tax Type (as needed) and approve 1099 Reportable Invoice (if applicable).

 

1. Select Company Single Sign-On to access your Oracle account.

    

 

2. Select the ‘Show All’ hyperlink from the notification icon of your homepage.

    

3. Select Worklist.

    

 

4. Select the ‘Action Required’ notification for Invoice Approval.

      

 

5. Select the ‘Action Required’ notification for Invoice Approval.         

 

 

6. Select Edit from the Actions dropdown.

        

 

7. Select Show All from the View dropdown of the Lines section.   

 

 

8. Select Tax in the shortcut banner.
9. Review Withholding in the Tax area of invoice.

Note: If correction to withholding is not needed, proceed to Step 18.  

 

10. Select Reject from the Invoice Actions dropdown.

 

11. Enter comment then select OK.      

 

 

12. Withholding in the Tax area of invoice is now editable. Select correct withholding percentage from the dropdown.       

 

13. Select the Descriptive Flex Field icon in the Details section on the invoice line.

      

 

14. Select Y or N from the “Were services performed in the US?” dropdown.
15. Enter the correct Foreign Income Type Code then select OK.

    

 

16. Select Save.

Note: After selecting Save, invoice status will be “Needs Revalidation”.    

 

 

17. Select Validate from the invoice Action dropdown.     

 

 

18. If Withholding was corrected, select Resubmit from the Invoice Actions dropdown. If Withholding was NOT corrected, select Approve from the Invoice Actions dropdown.

Note: If change is applicable to future invoices, contact Supplier Management Team to correct Supplier.        

 

 

You have now completed the process to review Invoice; update Withholding Tax (if applicable), populate Foreign Income Type Code and Services Performed Descriptive Flex Fields and approve 1042 Reportable Invoice (if applicable).

 

1. Select Company Single Sign-On to access your Oracle account.

    

 

2. Navigate to Invoices.

      

 

3. Search by Invoice Number.

 

 

4. Select Edit from the Actions dropdown.

      

5. Select Distributions button.  

 

 

6. Select the double chevron icon for the shortcut banner.
7. Select Income Tax in the shortcut banner. 

 

 

8. Use dropdowns in the Income Tax section of Distributions to make updates as necessary.
9. Select Save and Close.

Note: Even after update is made at the Distribution level, the original 1099 tax income type code will still show at line level.         

 

10. Once the Income Tax Type has been corrected, select Save and Close.

Note: If change is applicable to future invoices, contact Supplier Management Team to correct Supplier.        

 

 

You have now completed the process to correct Income Tax on paid 1099 Reportable Invoice.

 

Note:

The process will be the same to correct withholding on paid 1042 reportable invoices in situations that a payment was under withheld vs over withheld when the supplier and IRS tax payments are uncleared.

Prior to correction made by Reportability Reviewer, Payables Payment Processor voids IRS payment, and cancels IRS invoice then voids supplier payment and places ‘Withholding tax’ hold on supplier invoice.

1. Select Company Single Sign-On to access your Oracle account.

   

 

2. Navigate to Invoices.  

 

 

3. Search by Invoice Number.

    

 

4. Select Edit from the Actions dropdown.     

 

 

5. Select Show All from the View dropdown of the Lines section.   

 

6. Select the Tax hyperlink.
7. Use the Withholding dropdown to select the correct the Withholding amount.

      

 

8. Update existing Payment Terms on the invoice header to Immediate from the dropdown.

    

 

9. Expand the Invoice Header then select the Accounting tab.
10. Update the Accounting Date to fall within the current period.    

 

11. Once the Withholding has been corrected, select Save.
12. Select “Needs revalidation” hyperlink.

   

 

13. Select Manual Holds hyperlink.

      

 

14. In the Release section, select “Tax Withheld” from Name dropdown.
15. Select Save and Close.

    

 

You have now completed the process to correct Withholding on paid 1042 Reportable Invoice when both Supplier Payment & IRS Tax Payment Uncleared.

 

Note:

The process will differ to correct withholding on paid 1042 reportable invoices in situations that a payment was under withheld vs over withheld when the supplier and IRS tax payments are cleared.

• If payment was under withheld and supplier owes additional money to IRS, Payables Invoice Processor creates credit memo to supplier to reduce future payment amount and creates a new invoice to IRS.

• • No further action needed by Reportability Reviewer since payment was under withheld.
• If payment was over withheld and the supplier is owed money, Payables Invoice Processor creates credit memo to IRS to reduce total of payment.
  • Reportability Reviewer proceeds to Step 1 to submit a payment request for supplier’s tax refund.

 

1. Navigate to Purchase Requisitions (Classic) in Procurement.    

 

2. Select Payment Request under Request Forms   

 

3. Enter the Item Description, ‘REFUNDS’ for Category Name, Amount, and Currency.
4. Input Supplier name and select Supplier Site.
5. Respond to the Certifying Statement.
6. Select Add to Cart.     

 

7. Select the Shopping Cart icon.          

 

8. Select Review.  

 

9. Review Charge Account to ensure appropriate accounting to alien tax account then select Submit.

      

 

You have now completed the process to correct Withholding on paid 1042 Reportable Invoice when both Supplier Payment & IRS Tax Payment Cleared.

 

Note:

This process can be used to ensure that 1042 related invoices are showing up in the correct tax reporting year.

1. Select Company Single Sign-On to access your Oracle account.  

 

2. Navigate to Invoices.

         

 

3. Search by Invoice Number.

     

 

4. Select Edit from the Actions dropdown.

         

 

5. Select More Details from the lines section of the invoice.

 

6. Update Tax Reporting Year field. If additional years must be added to the dropdown, reach out to Oracle Solutions to update configuration.

 

You have now completed the process to correct Tax Reporting Year on an invoice.

 

1. Select Company Single Sign-On to access your Oracle account.

   

 

2. Navigate to Tools and select Scheduled Processes.      

 

3. Select Schedule New Process.

 

 

4. Search US 1099 Invoice Exceptions Report.
5. Select OK.        

 

 

6. Enter required parameters.
7. Select Submit.  

 

 

8. Select Schedule New Process.       

 

 

9. Search US 1099 Invoice Exceptions Report.
10. Select OK.

      

 

11. Enter required parameters.
12. Select Submit.  

      

    

13. Select Schedule New Process.

      

 

14. Search US 1099 Report.
15. Select OK.        

 

 

16. Enter required parameters.
17. Select Submit.

    

 

Note: To open report in different formats, follow the below steps.

                   

1. Highlight successful report run.
2. Select Republish (paper with eyeglasses).

 

3. Select the Gear Icon then select Export.
4. Choose your preferred output.

 

You have now completed the year end date validation process for 1099s.

 

Note: The following exceptions must be resolved prior to being able to successful run this report.

Supplier Exceptions

Exception	Description	Course of Action
No TIN	This supplier does not have a tax identification number.	Correction required -- must add TIN to supplier record.
No organization type	This 1099 supplier does not have an organization type defined.	Correction required -- must add tax organization type to supplier.
Nonstandard TIN	Tax identification number is more or less than nine digits.	Correction required -- must correct TIN on supplier record
No address element	This 1099 supplier has a tax reporting site that does not have an address, city, or postal code defined.	Correction required – must add address, city, or postal code.
No foreign address	This foreign supplier has a tax reporting site that does not have an address or country defined.	Correction required – must add additional address information.
No state	This supplier does not have a state abbreviation for its tax reporting site.	Correction required – must add additional address information. Suppliers with foreign addresses must be flagged as Foreign Individual / Foreign Corporation
Nonstandard state	State abbreviation is nonstandard for the supplier tax reporting site.	Correction required – must update state abbreviation Suppliers with foreign addresses must be flagged as Foreign Individual / Foreign Corporation
No tax reporting site	No tax reporting site defined for a multisite 1099 supplier.	Correction not required -- Oracle will choose the first active pay site to be tax reporting site
Foreign supplier	Supplier is designated as foreign for 1099 reporting.	Correction not required.

 

Exception	Description	Course of Action
Invoice distribution lines for non-1099 suppliers with an income tax type.	Invoices with income tax codes exist for suppliers that are not flagged as federal reportable.	Correction required – The supplier must be flagged as 1099 reportable with a TIN, or the income code must be removed from the invoice distribution.
Invoice distribution lines with null or invalid income tax regions	Invoices exist with income tax codes, but no tax region is populated.	Correction required – The invoice distribution must be updated to either add a tax region or remove the income tax code.
Invoice distribution lines for 1099 suppliers with no income tax type.	Invoices without income tax codes exist for suppliers that are flagged as federal reportable.	Correction not required – Based on the business process, the reportability review team may have excluded the income type code from a specific invoice if the payment was determined to be non-reportable.

 

Note: This report will likely be run by someone in Oracle Solutions so they can drop the files on the Diamond Solutions SFTP server.

 

1. Select Company Single Sign-On to access your Oracle account.

 

2. Navigate to Tools and select Scheduled Processes.

 

3. Select Schedule New Processes.

 

4. Search US 1099 Electronic Media Report.
5. Select OK.

 

6. Enter parameters as shown in screenshots.

Note: Use accurate accounting dates (for given year), Control name, Control Code 9provide by IRS), phone number, and email.

7. Select Submit.

 

8. Highlight successful report run.
9. Select Republish (paper with eyeglasses).

 

10. Select the Gear Icon then select Export.
11. Choose your preferred output.

Note: Make sure you export outputs for both the MISC and NEC reports that are generated by the US 1099 Electronic Media process.

 

You have now completed the process for generating US 1099 electronic media reports to be sent to Diamond Solutions.

 

1. Select Company Single Sign-On to access your Oracle account.

 

2. Navigate to Reporting Hub and select Oracle Central Finance Reporting Hub.

 

3. Select Accounts Payables Dashboards.
4. Select any report to open the dashboard.

 

5. Select Sprintax user Import.
6. Select a Payment Date range to pull 1042 related supplier information for the particular year.

 

7. Optionally, export to excel by select the Gear Icon, export, Excel.

 

8. Select Sprintax 1042 Tax Information.
9. Select a calendar year to pull 1042 tax information for the particular year.

 

10. Optionally, export to excel by select the Gear Icon, export, Excel.

 

You have now completed the year end process for 1042s – Running Sprintax reports.