Accounts Payable Year-end Checklist Quick Start

Accounts Payable Year-end Checklist Quick Start

Accounts Payable Year-end Checklist

This section is for those of you who have completed the year-end steps checklist before or for those of you who want a really short summary of the steps that you're about to complete. If you open the PDF on your computer, you'll find a short paragraph or two to explain each step. If you need additional instructions, there's a link in each section that will take you to more detailed instructions.

What if this is my first time closing the accounts payable year?

If this is your first time completing the year-end steps checklist, follow the instructions in the Accounts Payable Year-end Checklist and watch the Accounts Payable Year-end Webinar. The easiest way to follow the instructions is to use a second monitor to display the Accounts Payable Year-end Checklist so you can use your primary monitor to run Connect Accounts Payable.

What if I need additional assistance? Contact customer support at (800) 228-9851 to request one on one assistance for your organization.

Step 0. Before you get started

Before you begin the Accounts Payable Year-end Checklist, you’ll need to perform these tasks. [More]

Are you using the latest IRS 1099 Forms?

There are no changes to the IRS 1099 Forms for 2024. [IRS Tax Forms Reference Sheet] [Adobe Reader]

Do you have the latest Connect release installed and running?

You should be running the 2024.11 release or later.

Are you filing electronically?

If you have 10 or more 1099s to file, you will need to file electronically. Make sure you have submitted Form 4419; you have an active TCC that is less than 3 years old; and you are running the Connect Create Electronic 1099 File module. [More]

Have you downloaded and installed the Accounts Payable Year-end Electronic Checklist (XML)?

There are no changes in 2024 to the steps checklist. if you downloaded the 2023 XML, you can skip this step. [XML] [PDF]

Have you issued all December checks?

Before you start the Accounts Payable Year-end Checklist, make sure all checks that will be issued in the 2024 calendar year have been issued because the 1099 balances run on a calendar year basis. You're 1099 amounts will be off if you start this process before all of the checks have been issued for the 2024 calendar year.

Have you reviewed the vendor list?

Print and review the vendor list. The vendor list should include all vendors who were paid during the tax year. Make sure the vendor information that prints on the vendor list is correct. If you notice any issues (wrong information, typos, etc.), mark the corrections on the report. You'll need to enter the correct vendor information in Steps 3a and 3b. [More]

Step 1. Run Checkout

Verify all invoice and check transactions have been posted to Connect General Ledger. Running Checkout will not affect 1099 balances.

Step 2. Print 1099 Reconciliation Report

Use the 1099 Reconciliation Report to print invoice and check information for 1099 type vendors and to verify 1099 totals. You need to make sure all 1099 vendors appear on the report and all 1099 invoices are correct. In step 3, you will reconcile the 1099 vendor total to the 1099 invoice total. When you're done, the grand total on the 1099 Reconciliation Report - All Vendors should match the grand total on the 1099 Reconciliation Report - All 1099 Invoices.

Step 3. Review 1099 Reconciliation Report

Print the 1099 reconciliation report and then use it to review the invoices and vendors. If a vendor is missing from the 1099 reconciliation report, you should verify the vendor's 1099 type, 1099 ID, and recipient information. If the invoices are not correct, continue to step 4 to correct 1099 amounts. [More]

First, print the 1099 reconciliation report - all 1099 vendors

Second, print the 1099 reconciliation report - all 1099 invoices

Third, verify reconciliation reports

Step 3a. Correct 1099 IDs and types

If a 1099 vendor wasn't included on the 1099 Reconciliation Report, you may need to check the 1099 vendor information that's saved in the vendor record. The 1099 Reconciliation Report will only include a 1099 vendor if the 1099 vendor type is selected. If the 1099 vendor type is set to none, the vendor won't be included on the 1099 Reconciliation Report. Changing the 1099 vendor type to any 1099 type except None will fix this issue.

Step 3b. Correct 1099 amounts

When you review the 1099 Reconciliation Report, you may find invoices for 1099 vendors that show the wrong invoice amount or 1099 vendor type. You can use Adjust 1099 Balances to correct the invoice amount and 1099 vendor type. You can also use this routine to change the 1099 type to none and remove 1099 amounts from a non-1099 vendor.

Correcting 1099 IDs and types

Correcting 1099 amounts

Step 4. Print final copy of 1099 Reconciliation Report

If you made any changes to the 1099 vendor information, you'll need to reprint the 1099 Reconciliation Report for all 1099 vendors and the 1099 Reconciliation Report for all 1099 invoices.

Step 5. Print vendor history (Optional)

This step is optional.

Save the vendor history report for each vendor for your records. You can print the vendor history to paper or save it as a PDF (recommended). If you do choose to print the report, you should know this is a very large report. It includes vendor information, invoice detail for every invoice, check detail for every check, requisition detail for every requisition, and purchase order detail for every purchase order.

Another option is to print the Vendor History Report only for some vendors and not others. For example, you may need to keep a history of the transactions that you've had with a vendor for later.

Step 6. Convert year-end tax information

Good job! You've cleaned up the 1099 vendors and invoices and now you're ready to print the 1099 forms. The following steps use the Government Reporting application to convert 1099 information and print 1099s.

Step 7. Review the conversion report

Use the conversion report to review the converted 1099 vendors, 1099 amounts, and 1099 ID numbers. This is important because this is the information that will print on the Form 1099.

Step 8. Verify the 1099 Organization information

Verify the organization's contact information, Federal ID number, 1099 limits, and electronic 1099 file (if the organization will create an electronic 1099 file).

Step 8a. Fill out the Electronic Filing tab (10 or more returns)

If you are filing electronic 1099s, fill in the information on the Electronic Filing tab. Organizations filing 10 or more 1099s are required to file electronic 1099s.

Step 9. Run Checkout 1099 Recipients

Verify the converted year-end tax data in the 1099 Recipients table and then run Checkout 1099 Recipients to search for errors in the 1099 recipient records.

Step 10. Print sample 1099s to plain paper

You've reviewed the 1099 recipients and you're ready to print the sample 1099s to plain paper. Printing to plain paper gives you an opportunity to check if the right 1099 information prints for the 1099 recipient in the right box on the right 1099 form.

Step 10a. If corrections are needed, correct recipients

If you find errors on the sample 1099s that printed to plain paper, you will need to make corrections. Where you choose to make the correction will determine which step comes next.

Step 10b. Print actual 1099s for each form type

Use the same settings that you used to set up the sample 1099s (Step 10: Print sample 1099s to plain paper) to set up the report to print final 1099s. This is important because you may have made changes to the form alignment and you want to use those changes to print the final 1099s.

Step 11. Print substitute forms

If you're filing electronically, you will need to print a 1099 Form to send to the vendor. Instead of ordering pre-printed 1099 Forms, you can use the Caselle substitute 1099 Form to print the 1099 Form to plain paper, which you can use to send to the vendor.

You can mail a substitute form to a recipient to take the place of an actual 1099 Form. Substitute forms should only be used if you are filing electronically with the IRS. You are required to file electroncially if you are filing more than 10 information returns.

Step 12, 12a, 12b. Create electronic 1099 file

If you are filing 10 or more information returns, you will need to file electronically.

Step 12. Create electronic 1099 file

Step 12a. Select tax year and file path

Step 12b. Enter Transmittal Control Code (TCC)

Step 13. Change current year

The next step is to change the current year in the Accounts Payable application to the new tax year.

Step 14. Back up Accounts Payable data

Back up the Accounts Payable (AP0) and Government Reporting (GR0) databases before you continue. A general rule of thumb is to always back up the database BEFORE running routines that modify or delete transactions.

Steps 15-18a. Delete history (Optional)

Steps 15-18 will show you how to delete history. You do not need to delete any history if you prefer to keep all of transactions created by the Accounts Payable application.

Step 15. Print an Aging Report

Step 16. Print an Open Purchase Order Report

Step 17. Print a Pending Requisition Status Report

Step 18. Run Delete History (Optional)

Step 18a. Reprint reports (steps 15-17)

202311, 2023Dec28

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