Using Accounts Payable

Components of Vendor Tax InformationFields on the VNTX FormUse the VNTX form to define the following information:Table 13: Fields on the Vendor Tax Information (VNTX) FormFieldUsage1099-MISC Information (appears for U.S. institutions only)Required/OptionalSecond NoticeFlagWithholdingFlagDisplays “Y” if the Internal Revenue Service(IRS) has contacted you twice regarding thisvendor.The IRS sends your institution a notice if any ofyour vendors has furnished them an incorrectTaxpayer Identification Number (TIN). If youhave received two notices from the IRS withinthree years about this vendor, set this field to“Y.” The 1099-MISC process will then mark the“2nd TIN Not.” box on the 1099-MISC form forthis vendor.Displays “Y” if this vendor is subject to 1099withholding.Most vendors are not subject to federal taxwithholding from the amount appearing on their1099-MISC form. However, in some cases, taxmust be withheld. If the vendor is subject towithholding, you will need to deduct (as anegative line item) the required percentage oftax owed from each check issued to thatvendor.Colleague checks this field whenever you exitthe item maintenance forms for requisitions,purchase orders, or vouchers. If you have setthis flag to “Y” for a given vendor, and the TaxForm for an item in an item maintenance form isa 1099 type, Colleague issues a warning thatyou must enter a negative line item within thevoucher, to deduct the required amount of taxfrom your check to the vendor.OptionalOptionalUsing Accounts Payable, June 19, 2009 83© 2009 Datatel, Inc.