Objective

This document will explain what a pass through credit is, how calculate the credit(s) and how the credit(s) is reported on the 1099-PATR form.

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Pass Through Credits

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• Select Option 2 – Alternative Minimum Tax (see Illustration 2 below)

• Alternative Minimum Tax Amount to Allocate – Type the total alternative minimum tax to be used in the calculation of each patron's share of the alternative minimum tax. Refer to the formula above. There will a report generated when the process is finished, it is recommended that this report be sent to the spool.

• For the Calculation Option select 1 – Refund Based

• Begin/End Transaction Date – Type the dates that define the range in which a patronage refund was completed and is to be used to calculate each patron's share of the total patronage refund.

• Enter in any other parameters that may be necessary.

• Illustration 3, which can be found on the next page, is an example of the report.

Illustration 2
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Illustration 3
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Qualified Production Activities (DPAD)

The Qualified Production Activities is based on grain purchased from the member patrons during the Co-operative's fiscal year.
From the menu shown in Illustration 1 select Option 7 – Qualified Production Activities
The steps for processing are as follows (see Illustration 4 on the next page):

• Qualified Production Activities Amount To Allocate – Type the amount of the credit to be allocated to the patrons.

• Calculation Option – Option 1 will calculate the credit based on refund dollars, whereas Option 2 will calculate based on activity.

• Transaction/Activity Date – If using Option 1, enter the date range of the refund to be used to calculate the credit. If using Option 2, enter the date range of the activity that is to be used to calculate the credit.

• Click OK.

• If you are using Option1, at this point the credit will be calculated

• With Option 2 there are additional parameters to enter.

• Because the allocation is based on activity you will need to enter the parameters that you use to specify who is eligible to participate in a patronage refund.

• After clicking OK, additional fields will appear, see Illustration 5 on the next page.

• Purchase/Sales – Enter a P, beginning and ending

• Accounting Type – The options are 2 – 4. Enter the accounting type that is designated on the commodity patronage code

• Product Code – Enter the range of the commodity patronage codes for which the credit is to use in the calculation.

• Location Code – Enter a location range if there is activity in a direct ship location that they do not want to allocate on.

• Proration Option – Enter 1 – Quantity Based or enter 2 for Amount Based.

• Click OK, the credit will now be calculated.

Illustration 4
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Illustration 5
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Below is an example of the Qualified Production Activities report
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How to Edit a Patron's Pass Through Credit

If the necessity arises, there is a way to correct or re-enter a pass through credit for a patron. To do this go to Account Balance Inquiry, select the patron you wish to make a change to. The following screen will appear. To make the change click the Edit button which will open up the fields to be edited. See Illustration 8 on the next page.
Illustration 7

Illustration 8

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Building a Spreadsheet

To utilize this function, Excel must be installed on your computer or the terminal server. Remember if you are going to import the credit then you will need to manually calculate the credit for each individual. To build a spreadsheet that can be imported you will need the file layouts for imports. These can be found by going to Maintenance at the Main Menu of AGRIS then select File Layouts for Import. The following screen (Illustration 9) will appear. Scroll down until you reach the PAT package, here select the import description Pass Through Credits.
Illustration 9

The file layout provides the necessary information to build the spreadsheet. The first column on the report indicates the column of the spreadsheet and what is in the Comments column tells you what goes in the column. See the example of a spreadsheet below.
Illustration 9

Illustration 10


~ Documentation Written by: Alisa Mueller and Sherelyn Roberson 11/2015