This means that vouchers entered for the Vendor were flagged on the individual distribution lines to be included on a 1099 form. When you create the 1099 Work File, Orion goes out and looks at all checks written (on all banks) in the specified date range.  Once it locates the checks it will look at the voucher distribution lines of the vouchers paid by these checks and see if they were flagged to appear on a 1099.  All such distribution lines are totaled for each Vendor and a record created in the 1099 work file with the amount calculated placed in the YTDPayments column regardless of the 1099 Type. A Vendor does not have to be flagged for a 1099 in order to be included in this Work File – they only need to have had vouchers paid where distribution lines were flagged to appear on 1099s. 

The easiest way to correct this for the current batch of 1099 Forms is to just delete the record from the 1099 Work File.