Converting a 1099-NEC to a 1099-MISC in Accounts Payable

Some vendors may need to receive a 1099-MISC instead of a 1099-NEC, such as when payments are made for rent, prizes, or other non-service income. By default, 1099s generated through Accounts Payable (AP) use the NEC form type, so adjustments may be required before completing year-end processing.

When 1099 forms are generated through Accounts Payable, the system defaults to the 1099-NEC form type. If a vendor should instead receive a 1099-MISC, the form type must be changed before transferring the 1099 information to Human Resources (HR). Once transferred, the form type cannot be edited.

Use the steps below based on whether or not you have already transferred the AP 1099 forms.

Before You Begin

• Verify all vendor information (names, addresses, and tax IDs) is accurate.
• Ensure all AP entries are posted for the reporting year.
• Confirm you are working in the correct tax year.
• If applicable, review the article Payroll & Tax-Form Updates – Tax Year 2025 for current filing details.

If You Have Not Yet Transferred the AP 1099 Forms

1. Go to Accounting > Accounts Payable > Browse AP 1099.
2. Locate and edit the vendor record.
3. In the 1099 type field, select 1099-MISC instead of 1099-NEC.
4. Review and make any other necessary updates.
5. When all changes are complete, transfer AP 1099 forms to create the print file.

If You Already Transferred the AP 1099 Forms

1. Go to Browse W-2 & 1099 Information.
2. From the Worker Type drop-down, select Subcontractor (1099).
3. Click Insert to create a new record.
4. Choose 1099-MISC as the form type.
5. Enter all required information for the vendor.
6. Click OK to save the record.
7. Locate and delete the 1099-NEC record for that vendor to avoid duplication.

Important Notes

• 1099s generated from Human Resources will always be created as 1099-NEC and cannot be changed.
• Once AP 1099 data has been transferred to HR, the form type cannot be modified; it must be deleted and re-entered as shown above.