1099 incentives- accounting entry in sap fico

1099 incentives- accounting entry

Question: For incentive payments to be reported in 1099, what will be the accounting entries in SAP.

I understand we will need to create 2 GL accounts: one alternative reconciliation account for 1099 vendors and one offsetting entry non reconciliation account; and we will need to link these accounts to special GL indicators. Do I need to create new special G/L indicator or use one already in SAP?

I understand we will need to post an invoice document and then reverse it.

But haven't been able to put together accounting entries for this.?

Answer:
I have no clue what you are trying to say, I have worked with 1099 functionality in SAP, and I am also a 1099 vendor to companies providing SAP consulting
Does anyone has any idea what sapfico73 is talking about would like to know and learn more about it
sapfico73 could you please explain the business process for what you have said in your post


Regards

Answer:
Yes, how do you pay incentives/gift checks to 1099 vendors; since those will not have any invoice?

Answer:
sorry, my question was not very clear. now that I've found the answer, let me share.

so, the question is for payments that are made outside of SAP but which need to be included in the 1099 report, how do you handle this case? if you posted actual invoice/payment in SAP, that would distort your financials.

solution:

have 2 new accounts: 1099 alternate reconciliation account (A) and 1099 contra account (B) e.g. 99999 and 99998 respectivley. create a special gl indicator to post to alternate reconciliation account.

now post a invoice fb60: credit account A , debit account B
now post a payment f-53: reverse of above

now run generic withholding tax report; specify special gl indicator in selection screen.

please reply if any questions.

now, if someone can help me with staggered printing in 1099 reporting program i.e. print forms 1 and 2 for one vendor, then do the same for 2nd vendor and so on.