Overview: Starting Breeze in the middle of the year
If you start Breeze in the middle of the year, you probably made some payments in Breeze and some in another system. Before you can process 1099s in Breeze, you need to enter data for the payments made outside of Breeze. There are two ways to enter this data:
Using the YTD 1099 Amount field on the Vendor or Owner screen.
Entering dummy transactions and reversing them via journal entries.
The method you use depends on the way you file 1099s for owners and vendors.
Vendor or Owner | How you file | Enter data via |
Vendor | 1099-NEC form where the payer is the property management company and 100% of the payments go in box 1 on the NEC form. | The YTD 1099 field on the Vendor screen. |
Owner | 1099-MISC form. | The YTD 1099 field on the Owner screen. |
Vendor and Owner | - 1099-NECs where the owner is the payer. - If you need to populate box 4 of the 1099-NEC. - 1099-INT. - 1099-MISC for a vendor. | Dummy transactions. |
Using the YTD 1099 Field
With this method, you first calculate the amount of payments made in Breeze and the amount made in the other system. To obtain the amount of the payments made in Breeze, run the 1099 data extraction and verification reports. (For more information, see and ). In the other system, you can run similar reports.
Add the two amounts together and enter the total manually in Breeze for each vendor/owner.
Note(s):
Do NOT enter data manually and then run data extraction. If you do, the data extraction will overwrite the 1099 data on vendor and records.
Before you enter a YTD 1099 Amount, you must close the year. For example, if you complete a YTD 1099 Amount field prior to updating the operating month to 01/2021, Breeze will interpret the amount as belonging to 2019.
The YTD amount on the vendor screen will only populate on the NEC/MISC Vendor by Management form. The payer must be the property management company.
Entering 1099 Data via Dummy Transactions
This example assumes that we went live on June 1, 2022 so all transactions are dated May 31, 2022.
1. Calculate how much each recipient was paid prior to going live in Breeze and break this amount out by property.
2. Create a payable for each vendor for the lump sum amount they were paid prior to going live. You will need to add a separate line item for each property. Date the payable prior to your go live date and mark it as an adjustment.
3. After entering all the payables, go to the Make Payments screen. Make sure that you enter dates prior to your go live date in the Payment Date and Post Month fields at the top of the screen. Then locate the payables you entered, select them all, and pay them. Because they are adjustments, they will not impact your check numbers or trigger Bill Pay payments.
As of this step, the vendor ledgers have the detail you need to run the extract data function as if you had been in Breeze all year.
4. To correct the impact these transactions had on your financials, create a journal entry that reverses them. Date the journal prior to your go live date. This entry will debit the cash account you used and credit the expense accounts you used.
5. In order to keep these payments and journals from appearing on the next bank rec, use the Checkbook Maintenance feature to reconcile them back into a period prior to your go live date.
Go to Accounting > Banking > Checkbook Maintenance. The filter appears.
If you marked all the payments as adjustments, you can locate both the payables and the journals by setting the Item Type dropdown to Other Items. Set the Show dropdown to Unreconciled.
If you used the same date on all of these transactions, you can enter it in both the Date From and Date To fields. Selecting No Reconciliation Date ensures that nothing you have already reconciled will be appear in the search results.
Click Display and the transactions appear.
Enter a date in the Reconciliation Date field at the top of the list.
Click Set To All. This populates the Date field and selects the Rec? checkbox on all the transactions.
Click Save.