Auditing 1099s

To audit the 1099 total for each owner we suggest using the 1099 Reconciliation report. People will often try to audit the 1099 amounts with other reports in the software. This will usually appear as a discrepancy because many of the reports pull information differently and are showing different things. Some include suspense while others do not. Some report on production periods while other report on accounting dates which can lead to some overlap. First you need to make sure that you are running the reports with the same criteria and that both reports are showing the same thing.

1099 Reconciliation Report - This is the only report that will exactly match up with the 1099 every time. This is the report that you can send to your investors to show what makes up the balance of the 1099.

Owner Yearly Disbursement Summary - This is a report that will often appear different than the 1099. We do not recommend using this to audit your 1099 records. A few things that will cause this report to be different from the 1099:
- Report by - The 1099s are created based on the accounting date. Reporting on something other than the accounting year will not produce the same results.
- Group - If you are not including all groups the information may be different because another group could have affected the 1099.
- Direct Paid - Amounts paid directly from the purchaser will not affect the 1099. Including Direct Paid Oil and Gas will create a different amount than on the 1099 for owners in this situation.
- Include JIB History - JIB Amounts will not affect the 1099.
- Include Entries Still in Suspense - By default the 1099s do not report what is in suspense. Reporting what is in suspense will differentiate the report from the 1099.
- Only Include Entries Originally Created During the Selected Range - This option will allow the yearly disbursement summary to match the 1099 if they were created with the "Only Include Revenue Earned This Year" option marked. However, the other options on this report can still affect it so that it doesn't match.