Unique Business Challenges and General Discussion

[Controller]

I have searched and tried to find the answer, before using test data, to determine the following:

1.  If a vendor was not properly set-up as a credit card vendor - can you change the status and begin using the transfer option by

      simply marking the box and inputting the credit card data?

   a, If you can do option one, do you have to re-index the information to begin properly using the credit card option?

   b.  and transfer back to the vendors for all the open invoices incorrectly listed under the credit card vendor?

   c. For option one, if this can be done, is there an easy way to correct the information that WAS NOT properly transferred to the

       vendor resulting in understated vendors for 1099 purposes.

2.  OR.... Can you merge a non-credit card vendor to a newly established vendor that is properly set-up for the credit card option?

     a.  If so, once merged, can you then use the transfer option on those invoices currently reported as payable under the

          credit card that need to be transferred to the correct vendor?

     b.  Since the historical information will also merge, unless you have the option for only current OPEN invoices, how do you

          go back and transfer the information to the correct vendor?

Realizing that this is rather in-depth, I am sure I am not the only one that has stumbled upon this situation at year-end as part of an A/P verification re-structure and would greatly appreciate help on this item so that we can fix 2012 going forward correctly.

Thanks in advance.......

Controller

[Controller]

I have searched and tried to find the answer, before using test data, to determine the following:

1.  If a vendor was not properly set-up as a credit card vendor - can you change the status and begin using the transfer option by

      simply marking the box and inputting the credit card data?

   a, If you can do option one, do you have to re-index the information to begin properly using the credit card option?

   b.  and transfer back to the vendors for all the open invoices incorrectly listed under the credit card vendor?

   c. For option one, if this can be done, is there an easy way to correct the information that WAS NOT properly transferred to the

       vendor resulting in understated vendors for 1099 purposes.

2.  OR.... Can you merge a non-credit card vendor to a newly established vendor that is properly set-up for the credit card option?

     a.  If so, once merged, can you then use the transfer option on those invoices currently reported as payable under the

          credit card that need to be transferred to the correct vendor?

     b.  Since the historical information will also merge, unless you have the option for only current OPEN invoices, how do you

          go back and transfer the information to the correct vendor?

Realizing that this is rather in-depth, I am sure I am not the only one that has stumbled upon this situation at year-end as part of an A/P verification re-structure and would greatly appreciate help on this item so that we can fix 2012 going forward correctly.

Thanks in advance.......

Controller

[BigLouie]

That's a long post. All you do is just check the Credit Card Vendor box any time you want. No other action is required.

[Controller]

Thank you on that note, but how do I move/transfer the invoice to the correct vendor if the invoice was originally put under the credit card and the box was not marked?

Here is our issue specifically, MAILCO has PO in their file as open.

Invoice is under Credit Card Vendor with box unmarked.

If I mark the box on the vendor, it will not allow us to transfer (Most likely because the invoice is under the Credit Card Vendor)

So how do I correctly repost/correct all these MAILCO invoices that have been paid (and need to match to POs) and is under the Credit Card vendor and needs to move to the MAILCO Vendor?

Thank you for assisting.

[TomTarget]

I haven't convinced myself if you misunderstand what a credit card vendor is or whether there's a functionality of the program that I haven't tumbled to (I learn new things about the program often even after 20 years working with it).   Hopefully this helps.

From the help files in MAS.

Credit Card Vendor

Select this check box if this vendor is a credit card vendor; a credit card vendor is your credit card company, such as VISA or American Express. You can perform credit card transfers to and from credit card vendors in Accounts Payable Invoice Data Entry and Manual Check and Payment Entry. Clear this check box if this vendor is not a credit card vendor. In Vendor Inquiry, this check box can only be viewed.

In other words, it is NOT one of your vendor that you typically pay with a credit card.

---

The other interpretation I can get is that you don't want a payment for vendor you pay with a credit card to show up in 1099 info (per IRS instructions - the credit card companies are issuing 1099-K(?) for this now).    The transfer to a credit card vendor might actually do this (but I've never tested the theory) and I think that would be great if it did!   I've pondered this issue before.

So assuming it does work that way,  I would go to 1099 history in vendor maintenance and manually fix the numbers.  Is this a pain?   Yes!   Is there any automated way of fixing it?   I don't think so.

UPDATE:

I just tested my second interpretation.  A vendor invoice paid with a credit card transfer DOES increase the 1099 reporting amounts.   It really shouldn't under current IRS reporting standards.   So my second interpretation becomes moot,  but I do have a suggestion for an enhancement.

[rmikolainis]

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TomTarget wrote:

So assuming it does work that way,  I would go to 1099 history in vendor maintenance and manually fix the numbers.  Is this a pain?   Yes!   Is there any automated way of fixing it?   I don't think so.

---

If the person has Visual Integrator, you can use table AP_Vendor1099Payments and import the totals into that table.

[SRYork]

Wouldn't you normally have the 1099 option turned off on your Credit Card Vendors since you wouldn't be sending them a 1099 for payment made to them? 

Or, are you saying that when you pay an invoice by credit card on non-credit card vendors you should not include those amounts on a 1099?

That kind of makes sense since 1099's are on a cash basis of accounting.  But the vendor did receive the money (from the credit card company).

Now, whether you can deduct it? That  is different, but not the purpose of 1099 reporting.

In any case, tracking when the credit card amount is paid to then put it in a 1099 amount would really be a nightmare since money is fungible and people rarely always pay the outstanding CC balance every month.

Am I missing something?

[TomTarget]

See the instructions for 1099-MISC.   First page about 3 paragraphs down.

http://www.irs.gov/pub/irs-pdf/i1099msc_11.pdf

Non credit card vendors (other than the credit card company)  should not have payments made to then with a credit card included on their 1099-Misc.    The credit card company will send them a 1099-K showing those amounts.

[SRYork]

Thanks for the link.  I just talked to a colleague.  She thought the 1099-K requirement came into effect last year. It was new to me. 

I think the answer is to turn off 1099 reporting for the non-CC vendor when making the payment / transfer to CC Vendor. Since this is fairly new, it is defaulting to whatever 1099 reporting you have set up for the non-CC vendor.  I would submit an enhancement request to support to change this to default to none instead.

[TomTarget]

Unfortunately the 1099 setting is specified when you do invoice data entry,  not when you pay the invoice. 

As long as you know in advance whether you will be paying by credit card,  it can be handled at the time of invoice data entry,  but you don't always know.

Have already put a suggestion in the suggestions website.   Vote for it people!

[SRYork]

I believe Kim indicated the 1099 flags were visible in the transfer to CC vendor entry.  Are you saying that is incorrect?  Be sure to include making this visible as part of the CC transfer in your enhancement requests.