1. In Records, Vendors, open the vendor record.
  2. On the Vendor tab, click the 1099 Adjustments button or click Vendor, Enter 1099 Adjustments from the menu bar.
  3. Enter a date in the Effective Date column.
    Note: The effective date must be within the year you want to adjust.
  4. Select the vendor's normal 1099 box number.
  5. Select the current (incorrect) state from the drop-down menu.
  6. Enter the adjustment that needs to be made to box 18.
    • Enter a positive number to increase the box 18 amount
    • Enter a negative number (e.g.,-100) to decrease the box 18 amount
  7. In the next row, enter the same effective date and 1099 box number as in the first row.
  8. Leave the State box blank.
  9. Enter an amount that is opposite of the amount in the first line. If you entered (-100) in the first line enter 100 in the second line.
    Note: The net of the two lines should equal zero the total 1099 amount for the vendor remains the same.
  10. Click OK.

1099 Adjustment screen

Note: To prevent this happening in the future ensure the state is defined correctly on the vendor's 1099 distribution.