Last Updated: 1/22/2026
Workaround for Invalid 1099 Amounts (2025) in Business Central
An issue has been identified in the 1099 reporting amounts that include invoices processed via payment consolidation. This discrepancy occurs solely when a single vendor payment is allocated to multiple invoices.
As a workaround, apply an adjustment to the vendor account to compensate for the inaccurate calculations.
How to locate and resolve 1099 amount
Step 1: Click on the 1099 to open the details.
Step 2: Click on the calculated amount to open the vendor ledger entries.
Step 3: Check that amounts match
Please note that the line totals amount to 311, across a total of 3 lines. Due to the bug, the 1099 amount is erroneously calculated as (1099 Amount on Payment multiplied by the Number of invoices).
Step 4: Temporary workaround to create adjustments to fix 1099 amounts
Open IRS Reporting Periods and select 2025.
Step 5: Click on Documents
Step 6: Click on Validate 1099 Amounts
This process will attempt to sum the detail lines for each 1099 and compare to the amount.
Step 7: Show recommended adjustments
Step 8: Review recommended adjustments
At this stage, the adjustments have not yet been applied to the 1099 forms. You may review, edit, or export them to Excel to facilitate further auditing.
It is strongly recommended that you export and retain a copy for future reference and audit purposes.
Step 9: Close the form box adjustments
Step 10: Optional, Auto-Create the adjustments
At this step, the option to transfer the adjustments will be displayed. Selecting Yes will append the recommended adjustment amounts.
Please note that unidentified edge cases may still exist, and special caution is advised.
Step 11: Recreate 1099s
Following any adjustments, the system will prompt you to recreate the 1099 forms. This action simply initiates the "Create Forms" process.
If adjustments are applied, the existing 1099s will not incorporate the revised amounts. As such, they must be regenerated to ensure accuracy.
Further Auditing?
Choosing No at this point will allow for you to further audit the recommendations and change the 1099 adjustment amounts if required.
Please note that unidentified edge cases may still exist, and special caution is advised.
Step 12: Recreate 1099 - Set Period and Replace options
Set the Period to the 2025 year and select Replace. This will recreate the 1099s using the adjustments previously made.
Step 13: Click on Yes
Example of repaired 1099 amount
This shows the result of the correction after we have made the adjustment and recreated the 1099s.
Example of recreated 1099
Please note that the Calculated Amount remains incorrect. The Adjustment has been incorporated into the adjusted amount, and the amount field is now accurate.
Adjustment Location
The adjustments area can be found in the IRS Reporting Periods area after selecting the correct year.
Example of adjustment details