Backup Withholding on 1099 Payments

Gotcha’s on using the withholding feature in Dynamics GP

Lately, I’ve been fielding several questions from clients regarding the ability to track Backup Withholding using Dynamics GP. The short answer is that you can do it, you’ve just got to be careful.

Here are a few tips:

1. First, turn it on by entering a 1099 vendor ID in the Company Setup Options window:
   
   Administration | Setup | Company | Options Button
   
   
2. Open the Vendor card for the Vendor subject to backup withholding, push the Withholding button, and check the box indicating the Vendor is Subject to the Withholding Deduction .
   
   
   
3. After entering, posting and paying some transactions subject to withholding, print the Form 1099 for the vendor on whom you have withheld. Make sure box 7 has not been reduced by amount withheld.
4. The Vendor must be marked as a 1099 vendor on the date of the transaction subject to withholding or it will not make it onto the 1099. Neither the ‘update’ utility, nor the PSTL utility will fix it.
5. Using the Update ‘1099 Information’ utility does not move the withheld amount to the new form.
6. The ‘Edit 1099 Transaction Information’ window will likewise not move nor create the withholding information.
7. If you enter any amounts in the 1099 details window and then reconcile, the amount not supported by a transaction will return to zero
8. The withholding vendor will not withhold on itself even if you have it set up as a 1099 vendor subject to withholding.

Bear in mind, this withholding feature was not designed for the United States. If you are using it for US Backup Withholding, be sure to test it after each service pack release.

Live the Dream!

Leslie

Do not automatically unapply other documents if one is voided: 921385

Please vote for this suggestion if you agree.

Vote here: https://connect.microsoft.com/dynamicssuggestions/Feedback

Read about it here: https://connect.microsoft.com/dynamicssuggestions/feedback/details/921385/do-not-automatically-unapply-other-documents-if-one-is-voided

This refers to the new feature in GP2013 that will automatically unapply all documents (except payments) from a vendor invoice if even one of those documents is voided. For instance, if you pay an invoice using checks, credit memos, returns and write offs – ALL of those documents (other than checks) become unapplied when one of the checks is voided.

I just posted the suggestion on Connect, here’s why the new feature is a bad idea:

This new feature is a DISASTER and should be an option, NOT an automatic unapply of all non-payment documents. Here's what happens.

You have a payable to a vendor	$1,000
You pay by check ($400)	($400)
You pay by check ($415)	($415)
You apply a credit memo of ($10)	($10)
You apply a credit memo of ($75)	($75)
You apply a return ($50)	($50)
You write off ($50)	($50)
Remaining Balance	$0

At this point the invoice is fully applied and in history, as are the other apply documents.

Now, you void the $400 payment. Magically the following documents become unapplied:

• The credit memo of ($10)
• The credit memo of ($75)
• The return for ($50)
• The write off of ($50)

Now the balance of the invoice shows to be $585 instead of the ‘real’ balance of $400

WHAT! This is insanity!

So now you have to go back and figure out what those four documents should be applied to and apply them. This is causing a real problem and it should not behave this way. At least present a dialog asking the user if they want to unapply the other documents, don't just do it. And why the inconsistency with the payments, why aren't they unapplied too, the returns are.

This new 'automatic' feature is a nightmare and should instead be an option, not a mandate.

Kind regards,

Leslie

Allow changes to the Amount Paid field on the Edit Payables Check Batch window: 921350

Please vote for this suggestion if you agree.

Vote here: https://connect.microsoft.com/dynamicssuggestions/Feedback

Read about it here: https://connect.microsoft.com/dynamicssuggestions/feedback/details/921350/allow-changes-to-the-amount-paid-field-on-the-edit-payables-check-batch-window

I just posted the suggestion on Connect as appears below:

Currently, if you check a voucher on the right side of the Edit Payables Check Batch window, the Amount Paid defaults to 100% of the Open amount. What if I don't want that? What if I want to pay less than the total amount.

Well, then we have to open that particular payment in the Edit Checks window and change the amount. OR, we have to enter the check anew in the Edit Checks window. Either way, it adds a lot of steps to the payables function.

I think we ought to be able to just change the amount on the Edit Payables Check Batch window and go on with processing the check run.

Live the Dream!

Leslie

Add a [Mark/Unmark All] button to the Edit Payables Check Batch window ID: 921336

Please vote for this suggestion if you agree.

Vote here: https://connect.microsoft.com/dynamicssuggestions/Feedback

Read about it here: https://connect.microsoft.com/dynamicssuggestions/feedback/details/921350/allow-changes-to-the-amount-paid-field-on-the-edit-payables-check-batch-window

I just posted the suggestion on Connect as appears below:

The Edit Payables Check Batch window is a widely accepted, much sought after window and I was thrilled to see its addition to the program. However, I find it difficult to use if you have a long list of vouchers for a vendor and you need to uncheck most of them.

As soon as you select a vendor on the left-hand side, all of the vouchers are marked on the right-hand side. If you want to Unmark them, you have to do it one at a time. I expected the little check box above all of the other checkboxes would provide the Mark All, Unmark All functionality but it does not. If it's supposed to, it's broken.

This would reduce the amount of time it took for the payables clerk to pay vouchers if only a few vouchers were paid. Clients do not necessarily want to pay ALL of the vouchers outstanding, so there's always a second step to 'Unselect' the ones you do not want to pay.
It's easy to miss some vouchers, and end up paying too many. Cash out the door.

It would be much better if the default were 'unchecked', since changing the default doesn't make sense at this point, I think we need an "Check/Uncheck All" button, or an option in the Payables Setup window that controls the default behavior

Kind regards,

Leslie

Edit Payables Check Batch–Change the Columns Displayed

I find that there is a relatively unused feature of the Edit Payables Check Batch window. You have the option to change which columns appear on each side of the window. One change I nearly always make is to display the document number instead of the voucher number. Voucher number, really, what’s up with that?

Not only can you turn on or off the columns, you can also rearrange them.

In the screenshot below, notice I changed the left-hand section to include the Payment Priority. On the right-hand side, I changed Voucher Number to Document Number and added a field for the Original Amount.

To make these changes, you just need to push the ‘Column’ button in the header of the side you want to change. The button is circled in red above.

Upon pushing the button on the left, you get the following window with some additional choices that you can turn on or off. You are limited; you can only choose to display three columns. It will bark at you if you select too many.

Pushing the button on the right, will reward you with the following window with some additional choices that you can turn on or off. You are limited to seven columns for the right side. This side will bark at you too if you select too many.

Choices for the left and right are listed in the table below:

Left Side	Right Side
Vendor ID	Voucher Number
Vendor Name	Document Number
Total Amount Paid	Due Date
Class ID	Amount Remaining
Payment Priority	Amount Paid
	Original Amount
	Discount Date
	Terms Available
	Terms Taken
	Type
	Transaction Description
	Currency ID

Utilizing this feature can make this popular window even more inviting.

Now, if we only had a way to ‘Unmark All’. The suggestion is on Connect. Vote for 921336 if you agree.

Kind regards,

Leslie