This discussion is relevant and meaningful for those looking to generate 1099 reports using NetSuite.

Background

Commencing in 2015, I developed a focus on the complexities surrounding NetSuite’s 1099 reporting functionality. Initially, NetSuite offered its own 1099 reporting solution, which was then subsequently phased out in favor of external third-party solutions.   Over the years, observing the third-party ecosystem, I noticed a trend where saved searches were used to funnel data to their proprietary external tools for 1099 report generation and distribution. However, this approach fell short due to incorrect assumptions about vendor payments and saved searches.

The issue lies in the limitations of NetSuite’s saved search functionality, which lacks the depth (data reach) needed to accurately source the data elements crucial for a comprehensive 1099 report. It’s imperative to understand that 1099 reporting is based on cash transactions rather than accruals, necessitating a detailed analysis of cash flows to vendors before delineating the reportable elements of these transactions. Saved search just can’t get there.   See my diagram for the relationship between the transactions.

Prior to the introduction of SuiteQL (SQL) reporting capabilities within NetSuite, I addressed this challenge in my 2020 article, Finally Solved: NetSuite 1099 Cash Basis Reporting, demonstrating a viable solution. While effective, this method necessitated the creation of additional records to facilitate true cash-basis reporting.   The setup effort is more demanding because we need to get the infrastructure in place before we can get to the 1099 report.

Using SuiteQL to Report 1099 Transactions

The emergence of SuiteQL has revolutionized our approach, allowing us to transcend the limitations of saved searches, provided one possesses the requisite skill and willingness to leverage this powerful built-in capacity. At Prolecto Resources, we offer our clients a suite of high-performance SQL reporting tools at no additional license cost.  I encourage you to explore my writings on the NetSuite SQL subject for further insights into maximizing your NetSuite experience through our innovative solutions.

Gaining a Deeper Insight into the NetSuite 1099 Reporting Challenge

For a more nuanced comprehension of the challenges associated with cash-basis 1099 reporting in NetSuite, I recommend referring to my 2019 article, Understand NetSuite 1099 Challenges with SuiteAnalytics Workbook Inspections, which delineates these issues in detail.  After reviewing the article, I saw no need to restate it here.

I updated that article to include references to the current discussion, highlighting the advent of a resolution that employs SuiteQL. This approach enables a lightweight method to direct database queries, facilitating the summarization of essential data for accurate 1099 reporting.

Supplying the SuiteQL for True Cash Basis 1099 Reporting

Our Prolecto Financial Saved Search Library, freely available to the NetSuite user community, now includes SuiteQL, specifically designed for 1099 reporting. This inclusion facilitates the generation of a comprehensive 1099 report, with added commentary to shed light on certain subtleties. For instance, the SuiteQL framework doesn’t grant access to the native vendor taxidnum or the is1099eligible fields directly. Nevertheless, seasoned NetSuite administrators can successfully overcome these hurdles.

Alternatively, our expert team can configure the SuiteQL report as a straightforward annual 1099 report, simplifying the reporting process and enhancing compatibility with third-party platforms. This advancement ensures that NetSuite users can now access financially accurate 1099 reporting based on cash transactions with minimal setup requirements for annual agency reporting requirements.  Click the image to see a sample of the report.

If you found this article relevant, feel free to sign up for notifications to new articles as I post them. If you are ready to tackle your 1099 reporting challenges, let’s have a conversation.

Marty Zigman

Holding all three official certifications, Marty is regarded as the top NetSuite expert and leads a team of senior professionals at Prolecto Resources, Inc. He is a former Deloitte & Touche CPA and has held CTO roles. For over 30 years, Marty has produced leadership in ERP, CRM and eCommerce business systems. Contact Marty to set up a conversation.

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