How to Create Per-Unit-Retains for 1099PATR
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Version 18.1 (January 2018) released a completely re-vamped Patronage per-unit-retains function. This function will give you a better way to update the per-unit-retains for the 1099 reporting and it will also allow imports to stop.
Determining the Amount of the 1099 Per-Unit-Retain to distribute to each patron.
Learn about all the small questions to be answered in regards to how you distribute per-unit-retains.
Learn how to run the report that will auto update per-unit-retains.
Learn how to create spreadsheets, if you still want to import instead of auto update.
Learn how to make Corrections to the dollar amounts for each patron.
Per-Unit-Retains – what are they
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Name id must be marked YES or WITHHOLDING for ACCUMULATE PATRONAGE.
NAM > Name id Maintenance > Select Name > general information > Accumulate Patronage must equal Yes or Withholding.The new Per-unit-Retain reporting will allow you to update the per-unit-retain with three possible calculations: * Gross = Net Quantity times Contact Price* Net = Settlement Amount* Value of Grain = Gross adjusted by all "value discounts" such as Moisture, FM, Test Weight, Etc. but not by service charges such as Weighing and inspection fees, storage charges, etc.
It is our understanding that gross dollars are to be reported for the activity in a given calendar year less non-value deduction such as storage, drying, trucking, check-off expenses, etc. Please check with your auditor to verify. But note that you will now have 3-options of what value to post so we can handle however your auditor recommends.
The Section 199 Per-Unit-Retains are to be reported in Box 3 of the 1099-PATR form.
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It is recommended that you create a folder in My Documents or on your desk top. Use this folder to store the reports that you will be creating. The reports are one-time reports so spool them to the spool, then save an electronic copy somewhere else.
Settlement Split Name id: The per-unit-retain calculation is designed to print based on the settlement split name id. This is the person that received the check.
There is now a standard import report for importing source Allocations. AGRIS > Pat > Report manager > Advanced Reports > Per-Unit-Retain Allocation Export (AGEXPIMP.CSV>this will create the import file and allow you to tweak the values before importing them into the system.
Business Rules
The following business rules will be used to determine the per-unit retain allocation:
Each of the topics below refers to each split payment distribution of Purchase Settlements. The settlement split Name ID is used to determine each party's share of the Grain Value toward their Per-Unit Retain allocation.
# | Purchase Settlements | Notes |
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1 | Advance Settlement | The total Advance Amount will be reported for each split payment Name ID based on the date of the settlement, unless an A/P Voucher/Credit Memo is created. The A/P check amount will be reported based on the date of each A/P Disbursement. |
2 | Discount Settlement | No amount will be reported for discount settlements (settlements for storage charges, or any other type of discounts and/or premiums). |
3 | Final Settlement | The total Value of the grain, minus all advances will be reported based on the date of the settlement, or the date of the A/P Disbursement. |
4 | Client Load-Out Settlement | No amount will be reported. |
5 | Contract Cancellation Settlement | No amount will be reported when a contract is cancelled, and a settlement is created as a cancellation charge. No grain was purchased and there is no Grain Value. |
6 | Settlement Reversals | All reversals of Advances and Final Settlements will produce the opposite dollar affect, based on the date of the reversal. |
7 | Reopen and Resettle | The net effect of the resettled Grain Value will be reported (a negative amount of the old value plus a positive amount of the new value) |
Examples
The following examples are supplied to explain the different methods of settlement distribution. Each of the examples will report the appropriate value of grain purchases, regardless of how each of the split Name IDs were "paid" (by check, credit memo, A/R invoice, etc).
These examples assume that the DM discount (Damage) is set up as a discount that does affect the value of the grain, but SC (Storage Charges) does not affect the value.
# | Settlement Scenario | Result |
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1 | $1000 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1000 advance = $50 GRN Settlement Check |
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2 | $1000 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1000 advance = $50 A/R Reduction |
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3 | $1000 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1000 advance = $50 A/R Credit Memo |
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4 | $1000 advanced in 2017, with another 2017 final settlement of $1200 - $50DM - $100SC - $1000 advance = $50 A/P Voucher |
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5 | $1050 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1050 advance = $0 (zero-dollar settlement) |
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6 | $1100 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1100 advance = -50 ($50 GRN Settlement Receipt) |
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7 | $1100 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1100 advance = -50 ($50 A/R Invoice) |
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8 | $1100 advanced in 2017, with a 2018 final settlement of $1200 - $50DM - $100SC - $1100 advance = -50 ($50 A/P Credit Voucher) |
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Every example above results in a consistently reported Grain Value of $1,150.
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9 | With no previous advances, a 2017 final settlement was done of $1200 - $50DM - $100SC = $1050 GRN Settlement Check | $1150 reported in 2017 (1200 - 50DM) |
10 | On the same settlement as in #9, some Contract Cancellation delivery sheets were also included to charge the patron $600 for not delivering on his committed grain, and some client load-out delivery sheets were also included for $600 storage charges. The patron owes you more than the $1050 that you are paying him. $1200 - $50DM - $100SC - $600 Contract Cancellation - $600SC = -150 ($150 A/R Invoice) | $1150 reported in 2017 (1200 - 50DM) |
11 | In 2017, the patron paid you for the DM and SC discounts with a discount settlement $0 purchase - $50DM - $100SC = -150 ($150 A/R Invoice) |
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12 | In 2017, a final settlement was done of $1200 - $50DM - $100SC = $1050 GRN Settlement Check |
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13 | In 2017, a final settlement was done of $1200 - $50DM - $100SC = $1050 GRN Settlement Check |
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14 | In 2017, a final settlement was done of $1200 - $50DM - $100SC = $1050 and was split 60/40 to two patrons = $630 and $420 GRN Settlement Checks |
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Notes on the Report Created
RED Warning - If an allocation already exists for that customer and date range, you are warned on the report. It will still create an allocation transaction, so you can double or triple this amount up if you run and post the report over and over. But you do get a warning on the report. This warning occurs whether you are updating totals or not.
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Every allocation created for the customer will have a series of Remarks that give that provides the detail for what makes up the totals.
It's the grand total for each settlement type for that allocation.
This is provided for research purchases.
NOTE: if you answered NO to a certain settlement type, such as A/R Reductions, then the notes would say NA as in you didn't use this field to calculate.
Also note that this remarks can be edited via Account Balance Inquiry.
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Columns A-N These are the columns that will be used for the import file.The ability to edit the column N will allow you to create a different amount than what was calculated.
Columns O - End of import Fields. All information after this is to help you calculate column N manually
Columns P-AZ Grain Settlement Detail & Name ID Detail
Steps to Import the Spreadsheet (file)
At the Main Menu of AGRIS go to Reports.
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