AGRIS^™ V18.4.0.3

Patronage Accounting System
Training Manual

Compiled by:
Sherelyn Thomas-Roberson
Cultura Technologies, LLC
March 2019

© Copyright 2008 Cultura Technologies, Inc. Alpharetta, Georgia USA. All Rights Reserved Worldwide. Products mentioned herein may be trademarks or registered trademarks of their respective companies. This bulletin contains proprietary and confidential information owned by Cultura Technologies, Inc., and which is subject to laws, regulations, and treaties, and the provisions of your Cultura Technologies, Inc. license agreement. Any copying, dissemination, or use of this bulletin or its contents without prior written consent from Cultura Technologies, Inc. is expressly prohibited.
Table of Contents

Chapter 1: Introduction

What is a Cooperative?

A Cooperative is a business that is owned and controlled by the people using its services. That brief definition doesn't cover all the variations and complexities of cooperatives but, it captures the central difference between a cooperative and other businesses. In the cooperative, the owners and the users are the same people; they are the members. United State, Department of Agriculture, Agriculture Cooperative Service, Cooperative Information Report Number 9, What Are Patronage Refunds? (Washington 1985), 1 We all are familiar with farmer-owned cooperatives (farm stores, grain elevators, etc.) but there many different kind such as credit unions, utility companies (Rural Electric Associations), telephone companies and food coops just to name a few. The owners' (member) business transactions with the cooperative are considered patronage.

What are Patronage Refunds?

Patronage refunds are directly related to key principles and important practices, and the responsibilities the cooperative and its owners have to each other. The purpose of a cooperative is to provide a service to its member-users at the lowest possible cost, rather than generate a profit for investors. However, service at cost doesn't mean the cooperative operates that way on a daily basis. It doesn't for at least two good reasons: (1) it doesn't know exactly what its costs are on a daily basis; and (2) as a business in the private enterprise system, the prices it pays for products purchased and receives for goods sold fluctuate with the market.
Once a year, a formal accounting determines the cooperative's income and expenses. Income remaining after deducting all expenses (net margin or profit) is then distributed in proportion to patronage. The income in excess of expenses generated by the members' use of their business is thus refunded to them. This income returned or refunded is called a patronage refund. The patronage refund is an important source of financing for cooperatives. Members usually elect to leave a portion of the refund in the cooperative to help keep its operations on a sound financial basis. The retained portion of the patronage refund is allocated to the member's stock/equity account and maybe paid out at a later date. The special nature and purpose of a cooperative places the responsibility to finance the business on its member-users. Benefits are tied to use. Those benefits do not enhance the value of shares of stock or other equity capital. Therefore, the incentives that cause persons to invest in stock of other corporations are not present in cooperative stock. Consequently, members of the cooperative must provide most of its equity capital, either by direct investment or through retained patronage allocations. The cooperative has a responsibility, acting collectively for members, to develop a financing and ownership transfer plan that's equitable to members individually and that is in keeping with cooperative principles. As members use the cooperative, they assume the basic responsibility of providing capital according to their use. When patronage terminates, so does the financing responsibility. Unless the cooperative adopts a systematic plan to redeem equities, inactive members will hold an increasing amount of capital. Such a situation can lead to less participation by members in their cooperative's affairs and conflicting objectives. Financing the cooperative through reinvestment of patronage refunds is a simple and straightforward way for members to carry out their obligation to finance according to use. Equity redemption serves to keep the cooperative's ownership in the hands of current users. What Are Patronage Refund?, 2-3
Some people refer to patronage refunds as dividends so it is important to understand if they are talking about the patronage refund or a stock dividend,

Terminology

Allocation – The patron's share of the cooperative's net margin, or obligation for its loss. Tax laws require allocations retained by the cooperative be evidenced by a document issued to the patron by the cooperative. A document reporting a dollar amount allocated to the patron and the portion thereof that constitutes a patronage refund is called a written notice of allocation. There are two types of allocations, based on how the allocation and the document are structured and they are Qualified and Non-qualified.
Certificate of Indebtedness (C of I) – This is a debt instrument and is a way for the cooperative to borrow from the patrons to fund capital improvements. These instruments are usually issued at a given rate of interest for a given period of time.
Equity Redemption – The payment of cash or other property to return previously invested funds. A revolving fund plan is a system of equity redemption where the earliest investments are redeemed first, on a reasonably regular schedule.
Member/Consenter – A person or organization joining a cooperative and agreeing to abide by the conditions of membership
Member Equity – The capital investment of each member in the cooperative. Such investments are usually in the form of cash, retained patronage refunds, and per-unit retains.
Net Margin or Profit – Total income from all sources minus all expenses.
Non-qualified – The allocation is not structured to comply with specific IRS requirements. The cooperative pays the tax on these monies in the year obtained. When a nonqualified allocation is redeemed, the cooperative ducts the allocation from taxable income and the patron includes it in taxable income in the year of redemption.
Pass Through Credits – Tax credits that the Cooperative is passing on to its patrons. The Pass-Through Credits include Alternative Minimum Tax (AMT), Low Sulfur Diesel Fuel Credit, Small Ethanol Producer Credit, Indian Employment Credit, Small Refiner Coops Credit, Qualified Production Credit (DPAD) and Agri-Biodiesel Producer Credit.
Patron – A person who uses the services of a cooperative and agrees to share the margins in proportion to use. A patron can be either a member or nonmember of the cooperative.
Patronage Refund – A payment from a cooperative to a patron from net margins based on quantity or value of business done with or for the patron. The refund may be in cash and/or in the form of a document evidencing the patron's decision to have the cooperative retain the refund as an investment by the patron. Patronage refunds may be paid only to members or to both member and nonmember users. A patronage refund should not be confused with a dividend on capital stock. A dividend is a distribution to a shareholder based on investment or ownership. A patronage refund is a distribution based on use.
Per-Unit Retain – A deduction by the cooperative from the proceeds of sale based on the value or quantity of products marketed for the patron. This should not be confused with a patronage refund. Again, Patronage refunds are based on net margins generated during the year whereas Per-unit retains are based on the number or dollar value of units marketed.
Pooling – An averaging process wherein producers who market a commodity through a cooperative during a fixed period of time agree to share expenses and returns associated with the commodity handled during the period on a pro rata basis. What Are Patronage Refunds?, 4-6
Qualified – The allocation is structured to comply with specific requirements of the Internal Revenue Code. This means that the tax on the income is paid by the patron not the cooperative in the year that the income was obtained. The cooperative must pay at least 20 percent of any covered patronage refund in cash.

Chapter 2: Set-up

To optimize AGRIS, set-up is required in Accounts Payable, Accounts Receivable, General Ledger, Name/Address and Patronage. Consideration also needs to be given to the product categories in the inventory module and the first four miscellaneous fields in the general information of Inventory Setup.

Accounts Payable

Two voucher types need to be set up for patronage transactions, one for interest and one for all other patronage transactions except stock sales. This allows the user to cut the patronage checks and interest 1099s based on a voucher type.
There is a special patronage refund check form. This new form allows the user to use the check stub in place of the patron statement and/or as a substitute 1099 form. If the user wants to use this function it is an extended option and is controlled by system security.

Accounts Receivable

It is recommended that a unique invoice type for reporting purposes. This is used for stock sales.

Inventory Management

Patronage activity is accumulated based on the recap category that is set-up on each product category in inventory. Special attention should be paid to the fuel categories. If road fuel sales include road taxes and patronage is paid on dollars rather than on units then do not put road fuel items and off-road fuel items in the same product category because the road diesel dollars will include road tax. If you want to pay the same rate for both road diesel and off-road diesel, patronage has the ability to reduce the activity amount. This will be further explained in Patronage Code setup.
Patronage has the ability to use the first four miscellaneous fields in Inventory Set-up, General Information to control which items within a product category will be included or excluded from the accumulation of activity process, see Illustration 1 below. Example – the user could exclude direct ship items or other items within a product category that they do not want to pay patronage on. This will make balancing more difficult. Instead, it is recommended that they use a different product category or location code for direct ship activities.

Illustration 1

General Ledger

It is recommended that in addition to the normal equity ledger accounts, the following accounts be set-up; a patronage clearing account, a patronage refund payable account and one or more patronage adjustment account(s). If you choose, there can also be a separate account for each stock class and/or equity source code.
Below is an excerpt of the liability/equity section of a chart of accounts. The Unallocated Savings for a cooperative is synonymous with the Retained Earning account that would be used by a corporation.
2065 Back-up Withholding Payable POSTING
2620 Patronage Refund Payable POSTING
2630 General Reverse Account POSTING
2680 Patronage Clearing Account POSTING
2690 TOTAL CURRENT LIABILITIES FORMAT
2700 LONG-TERM LIABILITY FORMAT
2720 NOTES PAYABLE POSTING
2740 PURCHASE AGREEMENT POSTING
2770 TOTAL LONG-TERM LIABILITY FORMAT
2999 TOTAL LIABILITIES FORMAT
3000 EQUITY FORMAT
3030 Common Stock POSTING
3040 Preferred A Stock POSTING
3045 Preferred B Stock POSTING
3060 Local Equity POSTING
3070 Regional Equity POSTING
3080 Non-Qualified Equity POSTING
3910 Unallocated Savings POSTING
3920 PROFIT FOR PERIOD POSTING
3970 TOTAL EQUITY FORMAT

Name/Address

General Information

One of the miscellaneous fields in Set-up Information, Code Descriptions needs to be labeled and coded to differentiate different types of members from each other and from non-members. This field is very important because it is used to control who is eligible to participate in the patronage refund. This field needs to be required and validated. See Illustration 2 below.
The codes for this field are defined in Name Id Code Options under Set-up Information. For each patron the proper code will be entered on the Reporting Codes screen of the Name ID master. In Illustration 3 there are some examples of how the codes for Member can be set up.
Illustration 2

Illustration 3

In Set Up Information > General Information the User Defined #1 Description needs to be set to Birth Date. This information will allow you to do stock/equity paybacks based on a birth date or to do 100% cash for patrons over a certain age, such as 70. This description controls how the data will be entered on each individual. See Illustration 4 below.
Illustration 4

System Integration

Beginning with V18.1.0, there is an option to have the system update patronage with the name id type and the name id miscellaneous codes. The option allows the user to control if the codes are updated on the activity and/or on the transactions.
There are three options for the Activity Entries and they are as follows: 0 = No update, 1 = Update Unrefunded only and 2 = Update All. It is recommended that only Options 0 or 1 be used.
There are also three option for Transaction Entries and they are as follows: 0 = No Update, 1 = Update Active Stock/Equity Only and 2 = Update All. For better control, it is recommended to only use Option 0.
Illustration 5

Individual Name ID

On the General Information screen (see Illustration 6 on the next page) there is the question "Accumulate Patronage?". The options for this field are N, Y or W, where the W indicates that the account is subject to back-up withholding. This would be the result of a notice from the IRS or there is no federal id number. The system defaults a Y. If a Social Security/Federal ID number is not entered, when the record is saved the system replaces the Y with a W. It is recommended that all accounts be flagged as either a Y or W. If N is used then the activity for that account will not be accumulated and this can cause problems when trying to balance patronage to the ledger AND if the auditor needed a report for ALL business the user would be unable to get this information. This would also be a big problem if it was later determined that the activity should have been accumulated for the account.
The next field on this screen is the patron's social security/federal ID number.
The Birth Date field is also found on the General Information screen and requires the information to be entered as YYYY-MM-DD. For reporting purposes this field is considered a text field not a date field.
Also on this screen is a field where the name of the customer can be entered as it appears on the patron's federal id. Example: The name on the account may be Jesse James but for tax purposes the name needs to appear as Jesse R. James.
In the set-up of individual names a patronage relationship can be set up if the inventory and/or grain activity needs to be split to two or more accounts. This usually takes place in the case of a partnership where each of the partners are members but the partnership is not. The maximum number of accounts that can be split to is ten (10). See Illustrations 7 below and Illustration 8 on the next page.
Illustration 6

Illustration 7

Illustration 8

Patronage

Set-up Information

The options under this selection allow the user to change a variety of information which affects the overall operation of Patronage Accounting system.

Define Comparison Dates
Define three categories of date ranges for use in several reporting functions. These dates can be anything the user desires, some suggestions are fiscal year dates, calendar year dates or a combination of the two. See Illustration 9 below.
Illustration 9

Stock Class Information
The user can define up to five classes of stock and the steps are listed below (Illustration 10 on the next page).

Description – Across from the appropriate stock class, put in the description of each class of stock that the Cooperative has. This field is 15 characters in length.

Price Per Share - This price is the par value of the stock and the field is 10 characters in length including the decimal point. The number of decimal places is controlled by the Unit Price, All Packages in Numeric Precision which is found under the Customize menu.

Maximum Number Shares – This number represents the maximum number of shares that a patron can purchase or earn and is usually specified in the By-Laws of the organization. The maximum is 9,999,999.

Qualified? – The response to this question controls at what point the information prints on a 1099 if the stock is earned, not purchased. A response of "Y" indicates that the stock is Qualified and means that the stock is taxable in the year that it is earned. An "N" response indicates that the stock is Non-qualified which means that the stock is taxable in the year that it is paid back.

Last Certificate Number - This is the number of the last stock certificate that was issued. If loading beginning balances this field would be left at zero.
Last Equity Control Number – This number is comparable to the Certificate Number for stock. This number will be updated with each equity transaction and should be left blank if importing stock/equity balances or loading beginning balances.
Last Transaction Number – This number will be updated with each transaction and can be left blank if importing stock/equity balances or loading beginning balances.
Maximum Patron Equity – Enter the maximum dollar amount of equity that each patron can have if any. If there is no limit enter 9,999,999,999.99.
Maximum Stock/Credit – This is the maximum amount of stock/credit a patron can have.
Location Code – Enter the location code to be used for all patronage transactions. This code will be used regardless of the current default location that the user may have selected. It is very important that the Location Code for Patronage Transactions be entered and not left blank. If left blank, there is a risk of having transactions in multiple locations which can cause problems when doing an account balance inquire, doing a stock/equity payback and etc.

Illustration 10

Patron Refund Information
This allows the user to set up the parameters to be used by the system when calculating patronage refunds. This information can change from refund to refund and is also used by the system when doing a source allocation based on Patron Refund.
Patron Refund Information, Screen 1, Illustration 11 on the next page.

Minimum Refund Amount – This is the total amount of the refund. Anything less than the minimum will not earn any patronage and the funds will be returned to the cooperative.
Minimum 1099 Amount – This amount is set by the IRS and is currently $10.00.
Minimum Check Amount – What is the smallest check amount to be issued? This can be left blank but if necessary, this can any amount but is usually anywhere from a $1.00 to $10.00. Then if the check does not meet this minimum enter in a 1 to increase the check amount or a 2, no check will be issued and the total refund will be given as stock and/or equity based on flags on the next screen.
% Withheld If No Tax ID – This is called Back-up Withholding and the percentage, which is set by the IRS, is currently 24%.
If the user chooses option 1=From Check then the tax is only deducted from the cash portion of the refund.
If the user chose option 2=From Total Refund then the tax is deducted as 28% from the cash potion and 28% from the equity portion.
The bottom portion of the screen allows the user to pay back a different percentage of cash based on a given issue such as 100% if the patron's birthday falls within a given date rage or if the total refund is less than a given amount. The parameters for the patron's birthday have to be entered as YYYY-MM-DD as discussed in Chapter 2 and the Beginning birthdate cannot be left blank. The minimum cash portion of a qualified refund as set forth by law is 20%.

Illustration 11

Patron Refund Information, Screen 2, Illustration 12 and 13 on the next page.

This screen deals to which stock class and or equity and to whom the refund will be issued.
The refund order is the order in which the patron is to receive the stock/equity portion of the refund. This is also controlled by the maximum number of shares that was set up in Stock Class Information. Percent controls the amount of the stock/equity portion of the refund that will go to a particular class.
The balance of the screen is used to control who is eligible to participate in the patronage refund based on the flags that were set up in Name/Address.
The Refund Order controls how equity will be distributed. Based on the Illustration below, the patrons can earn Class A stock and Equity. The stock will be earned first until the maximum number of shares is reached per setup of the Stock Class Information and then equity will be earned.

Illustration 12 – Using Y/N flag to distinguish members from non-members

Illustration 13 – Using A, B and E to distinguish members

Dividend/Interest Rates

Here the user sets up the parameters to be used by the system when issuing stock dividends or paying interest. See Illustration 14 below.

Dividends are generally paid on participating preferred stock as set forth in the by-laws of the cooperative and are paid at some given amount (not a percentage) per share and therefore are not the same thing as a patron refund. (Some people call the patronage refund patronage dividends, so be sure to clarify what they are talking about)

The ability to pay interest was added to the patronage package with V9.2.1 to provided cooperatives with the ability to use the patronage system as a way to track Certificates of Indebtedness (C of Is), pay interest and issue 1099s.

Dividend Price Per Share – Enter the dividend amount to be paid per share, if any for each stock class.

Interest Percent – Enter in the interest rate for the period for which interest is paid. Interest is simply calculated by taking the value of the stock or equity and multiplying by the rate. There is no calculation for the length of time. Example – If the interest rate is 5% per year and the interest is paid quarterly then the rate to enter would be 1.25.
Minimum Check Amount – Enter the minimum check amount to be issued.
%Withheld If No Tax ID – This is called Back-up Withholding and the percentage, which is set by the IRS, is currently 24%.
Minimum 1099 Amount – The minimum 1099 amount is set by the IRS and is currently $10.00 for dividends and $600.00 for Interest.
Are Dividends Qualified? - This controls what boxes the information prints in on the 1099-DIV form. With an N response the information will only print in Box 1a and with a Y response the information will print in Box 1a AND Box 1b.

Illustration 14

Equity Source Codes

Equity Source Codes allow for the accumulation of ownership in the Cooperative beyond the limited number of shares. The equity source code allows the user to segregate monies based on qualified or nonqualified as well as the source of the income such as local or regional refunds. See Illustration 15 below and 16 on the next page.

Equity Source Code – This code is a one character field and the available characters are 1 – 9 and F – Z. In the look-up box the source codes will appear numerically and then alphabetically. The system requires a source code for the local refund and most generally 1 or L is used.
Description – Enter in a descriptive description for the equity source being set up.
Qualified? – The system requires a Y or N to the qualified question. The response to this question controls at what point the information prints on a 1099. A response of "Y" indicates that the equity is Qualified and is taxable in the year that it is earned. An "N" response indicates that the equity is Non-qualified and taxable in the year that it is paid back.
If the user wants ALL equities to hit the same ledger account, the account codes do not need to be identified on this screen. The account codes will be set up in System integration.
Equity Account Number – If you want each equity source code to be represented on the financials then each source code will need its own account code and you would set it up here. Enter the account number for the equity that is being set up.
Purchase Adjustment Account Number – If the purchase adjustments for all equity is driven to the same general ledger account code, this can be set up in System Integration and this field would be left blank. Otherwise, enter in the unique account code. It is recommended to use the Patronage Clearing Account.
Interest Payment Account Number – It is not likely that interest would ever be paid on equity and cannot be done if there is more than one kind of equity because the process to pay interest does not allow the user to choose an equity source code. This is why Certificates of Indebtedness (C of Is) are set up as a stock class.

Illustration 15

Illustration 16

System Integration
System Integration allows the user to indicate which patronage accounting functions should be integrated with Accounts Payable and Accounts Receivable, and assign corresponding General Ledger account codes.
System Integration, Screen #1 and #2, Illustration 17 on the next page.

This is where the user turns on the system integration and indicates which voucher or invoice type to use for each type of transaction.
Beginning and Ending Name ID Type – This is for default information only and does not control any SJI mapping. The response to this question will depend on the set up in Name/Address and is used to limit the name ids that are seen when searching for a name id in patronage.
Override Name ID Type Range? – Valid responses are "Y" and "N".
Integrate – Valid responses are "Y" and "N". A "Y" will result in an invoice or voucher being created for the transaction and the general ledger being updated accordingly. An "N" response will not create an invoice or voucher and there will be no impact to the ledger.
Enter the voucher type or invoice type to be used by the transactions.
Enter in the description that you want to appear on the voucher or invoice.

Illustration 17

System Integration, Screens #3 - Illustration 18 and #4 - Illustration 19 on the next page.

The third and fourth screens are where the mapping takes place that is used by SJI.
Stock/Equity Account Numbers - The account numbers should be from the equity section of the Chart of Accounts. There is usually a separate account number for each stock class.
Stock Credit Account Numbers – This can be the same number as the Stock Account Number or a unique number from the equity section of the Chart of Accounts.
Purchase Adjustment Account Numbers - This is the account number used by the system to post an entry when the user does a transaction, with the exception of patron refund, and does not pay 100% in cash. The account number can be the one the organization uses for the unallocated savings or can be a unique number for all transactions or a unique number for each stock class and equity depending on why the user is not paying 100% in cash.
Patron Refund Account Number – This account is the patronage refund payable account.
General Reserve Account Number – This account number should be a clearing account. This account is used when a refund falls below the minimum refund amount or the refund is a negative. Ledger entries will have to be done to zero out the clearing account and the dollars moved to Unallocated Savings or an account of the user's choice.
Back-up Withholding Account Number – This is a liability account.
Stock Dividend Account Numbers – These account numbers are usually expense accounts unless the dividend payment was set up as a payable.
Interest Payment Account Numbers – These account numbers are usually expense accounts unless the interest payment was set up as a payable.

Illustration 18

Illustration 19

Patronage Codes

This option allows the user to add, view/edit, update, delete and print Patronage Codes. Patronage Codes is how the Patronage system communicates with Inventory Management and/or Commodity Accounting and determines what activity will be accumulated.

Add or View/Edit Patronage Codes
Inventory – See Illustration 20 on the next page.

For inventory activity an S will find the activity that the cooperative sold to the patrons.
The accounting type for all inventory activity is a 1.
The Patronage code is the same as the Recap Product Category that is set on the product category in inventory and the user can search for the Product Category. It would be to the users benefit to print the Product Category listing from inventory. See Addendum A
The location code is optional. The only time that the user would want to set up the Patronage Code with a location would be if they would want to pay a different rate per location.
The status defaults as A for active.
The Description, Unit of Measure and Weight per UOM defaults from inventory.
The refund rate is usually provided by the auditor and can change per refund therefore; the rate is not needed to set up the patronage codes. When the rates are entered percentages and cents are entered as X.00. The rates can be carried out four decimal places.
The rate base defaults to 1 = Cents per unit but this can be changed to 2 = Percent of Amount.
The Alternate Source Rate is only used if the user is doing a Source Allocation based on accumulated activity.
The Activity Reduction Rate is used when the user wants to reduce the dollar amount of the accumulation and is based on cents per unit of measure. An example of this would be fuel sales (gasoline or diesel). The sale dollars include the road taxes and the user would want to reduce the amount of the sales by amount of these taxes. The reduction rate must be set up prior to accumulating the activity.

Illustration 20

Commodity Accounting – See Illustration 21on the next page.

All grain activity accumulates based on the name id of the delivery sheet. Therefore, most generally settlement splits do not work for a Cooperative.
The activity for the patron is accumulated as a P.
The accounting type will be based on how the cooperative wants to pay patronage on grain.
- Commodity Received – The grain can be in any liability position on the DPR other than in hold and must be on a delivery sheet. The activity will be accumulated based on the date of the delivery sheet.
- Commodity Purch/Sold – The grain has to be on a delivery sheet and on a contract. The activity will be accumulated based on the later date of delivery sheet date or application date.
- Commodity Settled – The grain has to be final settled before the activity will be accumulated.
For discounts such as storage or drying the accounting type is a 5. This activity accumulates based on settlement date.
As in inventory the location code is optional. The only time that the user would want to set up the Patronage Code with a location would be if they would want to pay a different rate per location. An example would be a zero rate on direct shipped grain.
The status code defaults as A.
The Description, Unit of Measure and Weight per UOM defaults from Commodity Accounting setup.
The refund rate is usually provided by the auditor and can change per refund therefore; the rate is not needed to set up the patronage codes.
Just like the discount tables in commodity accounting 1percent or one cent is entered as 1.00. The rates can be carried out four decimal places.
The rate base defaults to 1 = Cents Per Unit but this can be changed to 2 = Percent of Amount.
The Alternate Source Rate is only used if the user is doing a Source Allocation based on accumulated activity.
The Activity Reduction Rate is used when the user wants to reduce the dollar amount of the accumulation and is based on cents per unit of measure. This is used most usually with inventory activity.

Illustration 21

Delete a Patronage Code

Chose Patronage Codes > View/Edit patronage codes.
Now highlight the code that is no longer wanted
Click on the delete button.

Update Patronage Rates

This function works well if the user has multiple patronage codes that will be refunded using the same rate base, same unit of measure if refunding based on rate 1 (Cents Per Unit) and at the same rate. See Illustration 22 below.
Remember the Reduction Rate needs to be set up prior to accumulating the activity, the rates do not.
The rates can also be set up through View/Edit patronage codes by highlighting the code to change and then clicking on the Select button.

Illustration 22

Print Patronage Codes – See Illustration 23 on the next page.

No parameters are required if the user wants to print all patronage codes
If the user only wants to print a given range of Patronage Codes, the Accounting Type is requited
If wanting to print both numeric and alpha codes, the numeric code needs to be the first code in the parameter.

Illustration 23

Chapter 3: Processes

The functions within the patronage system allow the user to accumulate, compress, transfer, copy, remove and view/edit activity; issue patronage refunds and dividends; buy and sell stock; transfer and payback stock/equity; pay interest and allocate equity based on five options. The user also has the ability to reverse transactions.

Process Activity

Within this menu option the user can accumulate and compress the activity, copy or remove the activity and transfer or view/edit the activity.

Accumulate Activity

This option allows the user to accumulate transactions from the Inventory Management and Commodity Accounting packages, creating a file from which the user can print reports, calculate a patronage refund, or calculate a source allocation. The system will accumulate transactions from the inventory and grain modules. The result will be one activity record for each Patronage Code, location, and patron, identified by the Ending Date entered. This information is stored in the Accumulated Activity file, and is the basis for reporting, refunding, and allocation. An important benefit of accumulating activity is that large numbers of transactions are combined into a single record, identified by patron, date range, patronage code and location.
The steps to accumulate activity are as follows (see Illustration 24 on next page):

Current Period Beginning and Ending Dates - This date range can be for a given month or for the whole fiscal year. It is recommended that the activity be accumulated by the month because it is easier to balance to the ledger and if there is a problem the user will know which month to audit.
The system will warn the user if the Beginning Date is earlier than the Ending Date of the last accumulation (in other words, if the current accumulation overlaps a previous accumulation).
The system will warn the user if there is a gap between the Ending Date of the last accumulation and the Beginning Date of the current accumulation.
The next four fields are controlled by Inventory Setup Options and are Misc. Fields 1 through 4.
In inventory these fields are used in item setup and can be used to control which items within a given product category will be included for the accumulation.
The inventory miscellaneous field value is attached to the transaction at the time the transaction occurs. Therefore, if the user updates an item's inventory miscellaneous field value after a transaction for that item has occurred then that transaction may not be accumulated as desired.
A report will print after the accumulation is complete. This report is by patron by document number and therefore will be extremely long. It is recommended that this report be spooled rather than printed to paper.

Illustration 24

In summary, the things that control what activity is accumulated is as follows:

Name/Address – Accumulate Patronage flag. This defaults to Y and never should be changed.
Patronage Codes – Activity or Inactive; Location Code(s) and Date Range.
Inventory - Miscellaneous Fields, if used as parameter for accumulation.

Possible Accumulate Activity Error Messages

Activity Already Exists for This Period. Previous Un-refunded Accumulations Will Be Replaced. Do You Wish to Continue? See Illustration 34 on page 38. The system is verifying records and has encountered a previously accumulated record with the same ending date as the ending date entered above.
- (Y)es deletes all previously-accumulated un-refunded records with matching ending dates and then re-accumulates activity.
- (N)o stops the accumulation process and no files will be updated.
Refunds Have Been Distributed for This Period. Transaction No. 999-9999999 Must be Reversed. Do You Wish to Continue? This message will appear only if the user answered "Y" to delete previously-accumulated records. Before deleting a previously-accumulated record, the system verifies that it has not already been refunded. This message appears if the record has already been refunded.
- (Y)es - The refunded record will be skipped and the deletion process will continue. When deletions are complete, activity will not be accumulated. Must reverse the necessary transactions and perform the accumulate activity step again.
- (N)o - The deletion process will stop. If the user has answered "Y" to this prompt, and then answer "N" when it appears again, be aware that may have partially deleted activity.

If re-accumulating the activity without first removing, you will get the following message: Prev. Un-refunded Accumulations Have Been Deleted. Press Enter. At this point the deletion process has completed. Press Enter to continue to accumulate activity, or press Escape to exit the program and activity will not be accumulated. You will only get this message if you are re-accumulating with the same date range as the previous date range. If you accumulate using a different date range that includes the date range already accumulated you will have duplicated activity.

Compress Activity

This option is used to compress multiple lines of activity for a given patronage code to one line and/or to change the name id miscellaneous codes on the activity. See Illustration 25 on the next page.

Compress Accumulated Activity (Compress Activity = "Y")
This function is used if the user has accumulated activity for multiple time frames, and wishes to consolidate this un-refunded activity into a single activity record per patronage code. For example, if the user accumulated activity on a monthly basis, the activity file will could contain up to twelve separate sets of patronage activity data per patronage code. Compressing will combine all activity per patronage code into one activity record with a single period ending date, thus speeding the reporting, refunding, and source allocation processes.

Enter in the date range of the activity that needs to be compressed.
The compression can be controlled by Patron Name ID, Product Location and/or Purchase/Sales
Enter "Y" to both replace Name ID Type and Miscellaneous Field values and compress activity.

Update Accumulated Activity (Compress Activity = "N")
When accumulating patronage activity, entries for Name ID Type and Name/Address Miscellaneous Fields are saved along with patronage activity in the Accumulated Activity file. If changes are made to a Name ID Type or Miscellaneous Field value after accumulating activity, this process may not need to be done depending on how the system integration is set up in Name/Address. If the setup is set to Option 0 – No Update for Activity Entries, then the user must use this option to update the Accumulated Activity file with current values. This step ensures that up-to-date values are used during the patronage refund or source allocation process. This process can be done as many times as necessary before the activity is refunded.

Enter in the date range of the activity.
The compression can be controlled by Patron Name ID, Product Location and/or Purchase/Sales
Enter "N" to only replace Name ID Type and Name Miscellaneous Code values.

Update Patronage Transaction Records (Compress Activity = "T")
This function is used to change the flags on existing patronage transactions and is used to segregate transactions from a larger group of transactions.
Illustration 25

Transfer Activity

This option allows the user to transfer un-refunded activity to one or more other patrons. This option will look at the patronage splits set up in Name/Address (Illustrations 7 on page 13 and 8 on page 14). The user has two options – Transfer One Patron at a Time or Transfer Multiple Patrons At Once.

Option 1 - Transfer One Patron at a Time

Enter in the Name ID of the patron with the activity that is to be transferred, click OK.
Now the user has the ability to select specific lines of activity or the user can click the Select All button to select all of the activity.
If the user selects only one line of activity (Illustration 26) then they have the ability to change one or more of the following fields. If only one field is changed the system will change the others accordingly.
The Amount
The Quantity
The Percentage

Illustration 26

After clicking OK the user is taken back to the first screen and the activity that was transferred now has a Y in the Transfer column and the amount, quantity and percentage to transfer has changed for the one line of activity that was selected if less than 100% is being transferred (Illustration 27).

Illustration 27

If the user chooses the Select All button they only have the ability to change the percentage (Illustration 28 – next page).

Illustration 28

After clicking OK the user is taken back to the first screen and all of the activity now has a Y in the transfer column. Again the amount quantity and percentage to transfer will reflect the proper amounts based on the percentage to be transferred (Illustration 29).

Illustration 29

The next step is to click the next button. The next screen is where the user selects the name id of the patrons the activity is to be transferred to. If the splits were set up in Name/Address that information would default in. The user can have up to ten (10) splits. After clicking next the user has the ability to enter in the percentage or they will see the default from Name/Address. See Illustrations 30 and 31 on the next page.
Clicking next will start the transfer process and there is a report that will print after all transfers are complete.
The system comes back to the screen where the original name id was entered and lets the user know how many lines were transferred. The user can now select the next name id to transfer. When complete click ok and the report will print

Illustration 30

Illustration 31

Option 2 - Transfer Multiple Patrons At Once

This option will only transfer the activity of patrons for which the patronage splits have been set up in Name/Address.
The user can control the transfer for multiple patrons in the following ways (Illustration 32 on the next page).
Patron Name ID range
Period Ending Date range
Product Location range
Purchase/Sale range
Accounting Type range
Patronage Code range
Enter any desired control ranges or leave blank. Click ok.
The user will then be asked to select a printer. It is recommended that the report be sent to the spool.

Illustration 32

Copy Activity

This option allows the user to copy previously refund activity which will be used to process an additional refund (i.e. regional refund). The following Illustration shows the fields that can be used to select the activity to be copied.

The Equity Source Code and Period Ending Date are required.
Clicking Ok copies the activity. See illustration 33 below.

Illustration 33

Remove Activity

As previously discussed if the user re-accumulate activities for the same period and the system will let the user know that activity already exists for that period and ask if the user wants to remove the activity, see Illustration 34 below. Selecting Yes will remove the activity.

In Version 9 a second way was introduced to remove activity. There is now a menu function to remove activity. As shown in Illustration 35 below the date is required. If removing copied activity, then the equity source used in the refund process for the activity which was copied is required. You can never have two sets of un-refunded activity with the same date.
Illustration 34

Illustration 35

Activity History
This option allows the user to view, edit or delete existing un-refunded patron activity, add new activity for a given patronage code, see an audit of the selected activity and compare activity. Select the menu option and enter in the patron name id. Press enter or click OK.

The next screen that appears displays the activity for the patron selected. See Illustration 36 below.

Illustration 36

The user has the ability to see additional information about the activity by clicking twice on the line selected or highlighting the line and clicking the Select button at the bottom of the screen.
Selected Activity

If the activity is un-refunded the user has the ability to edit the activity (see Illustration 37 on the next page).
The fields available to be edited are as follows.
Period Beginning Date
Quantity
Amount
Refund Rate
Rate Basis
To delete the activity remove the Quantity and Amount.

Illustration 37

If the activity is refunded (Illustration 38 on the next page) the user can drill down to the transaction level (see Illustration 39 on the next page). The user can continue to drill down on the transaction to see any remarks (Illustration 40 on page 40), the voucher (Illustration 41 on page 40), the ledger distribution (Illustration 42 on page 41) and the disbursement (Illustration 43 on page 41).

Illustration 38

Illustration 39

Illustration 40

Illustration 41

Illustration 42

Illustration 43

Audit Activity

If the user selects a line of activity and clicks the audit button they will see (Illustration 44 on the next page).
Patron Name ID
Period Beginning and Ending Dates
The type of activity – P/S, Accounting Type, Patronage Code and Location
Entry Date
Work Station Number
User
Audit Type
- 1 = Manual Edit
- A = Accumulate
- B = Import Activity
- C = Compress Activity
- D = Transfer Activity
- E = Copy Activity
- F = Remove Activity
- G = Refund Activity
- H = Reverse Activity
- Quantity and Amount Change
- New Quantity and New Amount
- The user can drill down further and see the refund rate, amount, process date and audit type. See Illustration 45 below.

Illustration 44

Illustration 45

Compare Activity
The user can also compare years of activity by clicking on the Compare button at the bottom of the screen (Illustration 46).
Illustration 46

The next screen that appears is shown in Illustration 47 below.
The Beginning/Ending date ranges default from setup but the user can change them on this screen for this comparison only.
Clicking on OK or cancel returns the user to the pervious screen.

Illustration 47

Insert Activity

The user can add activity by clicking on the Insert tab.
A screen will appear where the user will need to select the patronage code for the activity that is being added.
On the next screen (Illustration 48 on the next page) the user will need to add the following information and then press Enter or click OK.
Location Code
Period Ending Date
On the next screen (Illustration 49 on the next page) the user will need to add the following Information and then press Enter or click OK.
Period Beginning Date
Quantity
Amount
Rate – This is optional. It is much easier to set the rate and rate type on the patronage code rather than when entering the activity.
Rate Type – This is optional. Again, it is much easier to set the rate type on the patronage code rather than when entering the activity.

Illustration 48

Illustration 49

Patronage Transactions

The sub-menu options included in this menu option allow the user to perform several different functions. Those functions are issue patronage refunds and dividends, sell and buy stock, transfer and payback stock/equity, pay interest and reverse transactions.

Patronage Refunds

This option allows the user to distribute the profits of the Cooperative among patrons/members based on patron activity. Make sure in Setup Information, System Integration that Patronage Refunds is set to integrate with Accounts Payable. This allows the system to generate an Accounts Payable voucher for each refund. For step-by-step instructions for processing a patronage refund that can be shared with a customer see Addendum B.

The steps for processing a patronage refund are listed below.

If Name/Address miscellaneous fields are being used to control the patronage refund, print a Name/Address report to verify that all patrons have the correct entry in this field.
Also verify the response to the question "Accumulate Patronage?" on the General Information screen for each patron. Everyone should be flagged with a Y unless they are subject to back-up withholding or there is no Social Security/Federal ID No. present and then the flag will be a W.
Accumulate the activity and reconcile to the ledger, inventory management and/or commodity accounting as previously explained.
After the activity is accumulated if changes are made to any name ids, verify in Name/Address how System Integration is setup. It may or may not be necessary to compress the activity as previously discussed under Process Activity.
Update the rates and other parameters for each Patronage Code/Location combination. When finished, print a Patronage Code listing and check for accuracy.
Review all responses to Patronage Setup Information options, including:
- Stock Class Information
- Patron Refund Information
- System Integrations
Caution - If you plan on completing multiple refunds or a Source Allocation, consider carefully the entries for Minimum Refund and Minimum Check Amount. These may need to be changed for each refund or source allocation. Remember that the system is treating each refund or allocation individually; it is not accumulating minimum refund and check amounts towards a grand total minimum amount for all refunds/allocations combined.
Print one of the following reports from the Activity reports menu:
- Patronage Product Activity Summary report. Adjust the Ending Date parameter to be for the fiscal year for which patronage is being issued and the necessary parameters to include only the patrons who are eligible to participate in the refund. By patronage code, this report will give a preview of the volume and patronage refund but will not update any files.
- Projected Refund Summary - By Patron report. Adjust the Ending Date parameter to be for the fiscal year for which patronage is being issued and the necessary parameters to include only the patrons who are eligible to participate in the refund. This report also previews the refund, will not update files, and is summarized by Patron ID. It has the added benefit of printing an Actual Refund value adjusted to $0.00 if the patron's refund is below the Minimum Refund amount entered in Setup Information, Patronage Refund Information.
Review the report printed in the above step for accuracy and verify that the Actual Refund Amount is in tolerance of amount that was allocated for the refund
Calculate the patronage refund. From the Patronage Transaction menu option, go to Patronage Refunds. The following information will be required, see Illustration 50-A on the next page.
- Period Beginning and Ending Dates - Enter the beginning and ending dates containing the accumulated activity to be used to calculate the patronage refund. This is the fiscal year.
- Equity Source Code – This is the code where the equity will be accumulated.
- Transaction Date - Press Enter to assign the transaction date shown, or enter the date of choice. Note - this is the date that will be used when selecting transactions for inclusion in 1099 printing and the 1099 electronic file.
- Voucher Due Date - This prompt appears only if the Patronage package is integrated with the Accounts Payable package. Enter the Due Date to be assigned to each voucher. Note - Due Date must be equal to or greater than the Transaction Date above.
- Remarks may be entered. They will only be seen when drilling down on the transaction in Transaction History.
- Click OK.

Illustration 50-A

Rate Selection - This option allows the user to select which refund rate will be used for calculating patronage refunds. (See Illustration 50-B on next page).
- Activity Refund Rate - Every time the Accumulate Activity option is ran, the system saves patronage activity for the period specified, along with the product code refund rate(s). This method uses the refund rate in effect at the time(s) that the activity was accumulated.
- Patronage Code Refund Rate - This method uses the refund rate currently entered for patronage codes.
- Refund Rate of Zero - This method flags all existing accumulated activity as having been refunded, and no refund will occur. This feature is useful when the user has accumulated activity but does not wish to calculate a patronage refund. Once flagged as refunded, the activity can be purged.

Illustration 50-B

Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patronage refund has been calculated. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next control number in the sequence, or 3) enter an Accounts Payable voucher or control number of choice. Whichever method the user chooses, the system will sequence the number for the remaining patronage refunds.
At the end of the refund process the system will display the transaction number range and the voucher number range. It is recommend that they write these numbers down.
The user can print the Patronage Refunds report (from the Transactions Report menu).
In Accounts Payable, print the Voucher Register (from the Accounts Payable Voucher Reports menu). Adjust parameters on the first screen to include only the voucher type for patronage refund.
In Accounts Payable, disburse the patronage refund vouchers using Patr Refund Disbursements. It is recommended that you print the checks in batches by using a range of voucher numbers to control the number of checks that prints. This makes it easier to recover if the printer jams or runs out of paper. There is the ability now to reverse a range of checks if that becomes necessary.
In Accounts Payable, print a Vendor Disbursement report, and adjust parameters on the first screen to include only the voucher type for the patronage refund (optional).
If the checks were printed using the Accounts Payable check form rather than the Patronage Refund Fund check form, in Patronage Accounting print a Patron Statement or other report to attach to the refund check.

Issue Dividends

This option allows the user to calculate dividends on active shares of stock. Remember dividends are paid based on number of shares NOT the stock value. If Patronage Accounting is set to integrate with Accounts Payable, the system will also generate an Accounts Payable voucher for each dividend. The list below is the entire sequence of steps that the user should complete whenever calculating dividends.

Review all responses to Patronage Setup Information options, including:
- Stock Class Information
- Dividend Information
- System Integrations
Issue dividends; see Illustration 51 on the next page.
- Voucher Due Date – This field only appears if Patronage is integrated with Accounts Payable, accept the default or enter in the due date desired for the vouchers.
- Transaction Date – Press enter to accept the default date or enter in the desired date for the transaction. Note - this is the date that will be used when selecting transactions for inclusion in 1099 printing and the 1099 electronic reporting.
- You can control which certificates get paid based on the date of the certificate. Leave the Beginning and Ending Certificate Date fields blank if you are paying a dividend on all certificates. Otherwise, put in the appropriate date range. (Ludlow Coop pays dividends based on the date the certificate was issued.
- Answer Y to each stock class to be issued a dividend and enter the rate per share.
- Enter any necessary remarks. These remarks will only be seen when drilling down on the transaction. Click OK or hit enter.
- The user will get "Is This Correct?", respond appropriately
- Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patronage refund has been calculated.
- Press Enter to accept the voucher number displayed, or
- Blank out and press Enter to display the next control number in the sequence, or
- Enter an Accounts Payable voucher or control number of choice. Whichever method the user chooses, the system will sequence the number for remaining patronage refunds.
Print the Stock Dividend report (from the Transactions report menu) and check for accuracy.
In Accounts Payable, print the Voucher Register (from the Accounts Payable Voucher Reports menu). Adjust parameters on the first screen to include only the voucher type for the dividend.
Disburse the dividend vouchers.
Print a Vendor Disbursement report (from the Accounts Payable Disbursement Reports menu), and adjust parameters on the first screen to include only the voucher type for the dividend (optional).
If the user tries to issue another dividend with the same transaction date as a prior issuance the system will display a warning and ask the user if they want to issue another one. The responses are yes to continue or cancel to end.

Illustration 51

Stock Sales

This option allows the user to sell any of the five classes of stock to any patron who does not already own the maximum shares allowed for that class of stock (as defined in Setup Information). Stock Class Information and System Integrations in the Patronage Accounting Setup Information section must have been completed. If Patronage Accounting is set to be integrated with Accounts Receivable, the system will generate an Accounts Receivable invoice for each stock sale transaction. This option may also be used to initially load stock balances for patrons, in which case the user should set the "Integrate with A/R" flag to "N".
Listed below is the entire sequence of steps that the user should complete when selling a share of stock.

Review all responses to Patronage Setup Information options, including:
- Stock Class Information
- System Integrations
Issuing stock - See Illustration 52 on the next page.
- Patron Name ID - Enter the ID of the patron to whom the stock is being sold, or use the Alpha Search option to locate the ID. Press enter or click OK.
- Stock Class - Enter the letter designating the class of stock being sold to the patron. Press enter or click OK.
- Stock Credits - Any existing credit accumulated by the patron toward purchase of the share of stock will be displayed for the user's reference. No entry is allowed.
- Sales Amount - Enter the net amount due for the stock sale (calculated by deducting stock credits from stock price). If integrating with Accounts Receivable, this amount will be transferred to Accounts Receivable as an invoice. When initially loading stock make sure the integration to Accounts Receivable is off. The user should enter the stock value (share value times number of shares) in this field. If loading a stock credit, enter the credit value in this field; the system automatically identifies the entry as a credit if it is less than the value of one share of stock.
- Certificate Number - The system will assign the next available stock certificate number. The user can override if necessary. Note - the system maintains a unique range of certificate numbers for each class of stock. Therefore, a certificate number can be used more than once as long as it is assigned to a different class of stock.
- Transaction Date - Press Enter to use the transaction date shown, or enter the date of choice.
- Invoice Due Date - This prompt is valid only if patronage is integrated with Accounts Receivable. Enter the Due Date to be assigned to this invoice when it is passed to Accounts Receivable. Note - Due Date must be equal to or greater than the Transaction Date on the previous line.
- Invoice Number - If Patronage is integrated with Accounts Payable, the system will display a default Invoice Number.
  - Press Enter to accept the invoice number displayed, or
  - Blank out and press Enter to display the next sequential control number, or
  - Enter an Accounts Receivable invoice or control number of choice.

Illustration 52

Stock Purchase

This option allows the user to purchase any of the five classes of stock or stock credits from a patron. If Patronage Accounting is integrated with Accounts Payable, the system will generate an Accounts Payable voucher for each stock purchase transaction.
Listed below is the entire sequence of steps that the user should complete when purchasing a share of stock.

Review all responses to Patronage Setup Information options, including:
- Stock Class Information
- Stock System Integrations
Purchase - See Illustration 53 and 54 on the next page.
- Patron ID - Enter the ID of the patron from whom the stock or stock credits are being purchased, or use the search function to locate the ID. Press enter or click OK.
- Stock Class - The system will display those classes in which the patron owns stock or stock credits. Enter the letter of the class of stock being purchased from the patron. Press enter or click OK.
- Stock Credits - If the patron has stock credits available, the system will display the stock credit value as "$x.xx Remaining". The user may either enter the value of the credits to purchase, or leave blank.
- Purchase This Certificate? - The user is allowed to purchase only one certificate at a time, though each certificate may consist of multiple shares. As the system displays each certificate in succession, the user will be prompted whether or not to purchase that certificate. Enter "Y" to purchase the certificate, or "N" to skip.
- Purchase Amount - The system will calculate the purchase amount based on the entry, if any, for stock credits, and selection, if any, of a certificate. Press Enter to accept the default purchase amount, or enter the amount of choice.
- Transaction Date - The system assigns today's date as the transaction date. Press Enter to accept, or enter a transaction date of choice.
- Voucher Due Date - If Patronage is integrated with Accounts Payable, the system will assign today's date as the voucher due date. Press Enter to accept the date displayed, or enter the due date of choice.
- Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number.
  - Press Enter to accept the voucher number displayed, or
  - Blank out and press Enter to display the next sequential control number, or
  - Enter an Accounts Payable voucher or control number of choice.
In Accounts Payable pay the voucher.

Illustration 53

Illustration 54

Stock/Equity Transfers

This option allows the user to, 1) transfer all or a percentage of stock, stock credits, or equity one patron at a time, 2) transfer stock for multiple patrons at once or, 3) transfer equity for multiple patrons at once. There is the ability to change the Miscellaneous Name ID flags on patronage transactions. This was discussed earlier in this chapter. This will allow the user to segregate a group of patrons which will provide further control of transfers for multiple patrons.
Listed below are the steps to transfer one patron at a time:

Check system integration. Even though no voucher or invoice will be created for the transfer the integration must be on for the ledger to be updated.
Transfer one Patron at a time – See Illustration 55 below.
- Patron ID - Enter the ID of the patron who is the source of the transfer (that is, from whom the transfer is being made), or use the search function to locate the ID. Press enter or click OK.
- To select the stock/equity to transfer the user can either double click on the line to transfer, or highlight the line and then click on the Select button, or if all stock/equity is to be transferred click the Select All button.
- If selecting a given line a box will come up with the Transfer Amount. The system will display the current dollar amount for the line selected. Press Enter to accept the amount displayed or change to the desired amount.
- After the selection is complete click on the Continue button.
- Illustration 56 on the next page will appear.

Illustration 55

Select the stock/equity to transfer to.
Number of People Receiving Transfer - Enter the number of recipients (up to 48) among whom the stock/equity is going to be distributed.
Name ID __ of __ - Enter the ID of the (first) recipient to whom the stock/equity is being transferred. If splitting the stock/equity among more than one recipient, this prompt will be displayed again after completing Amount Received below, until 100% of the stock/equity is transferred.

Illustration 56

Percent - This prompt appears only if distributing the stock/equity among more than one recipient. Enter the percent of the stock/equity being transferred to this recipient.
Amount Received - This prompt appears only if the user is distributing the stock/equity among more than one recipient. The system will multiply the Transfer Amount by Percent on the previous line, and display the calculated amount. Press Enter to accept the amount, or enter the amount of choice. The system continues to use this amount in the calculations that follow:
Previous Balance - Recipient's stock/equity before transfer.
Total Stock/Equity - Sum of previous and transferred stock/equity.
Next Certificate - If stock has been issued as a result of this transfer, the system will assign the next available certificate number (in the sequence from Stock Class Information in the Setup section). Press Enter to accept, or enter the certificate number of choice.
Date Option - After all splits are entered the user will have the option of 1) using the new transaction date or 2) maintaining the original transaction date. This will be the date on the transaction for the new owner. How this is answered plays into Stock/Equity paybacks. If the Cooperative has a revolving or systematic way that they payback old equity then the question is do they want this to be refunded based on the original issue date or the date of the transfer.
New Transaction Date - Do not change the New Transaction Date. This will be the voucher date so that the transaction flows to the ledger. The voucher will be a zero voucher but the system needs this to make the proper general ledger entry.
Remarks – The user has the option to enter remarks if they wish.
Voucher/Control Number - If Patronage is integrated to Accounts Payable, and if stock has been issued as a result of this transfer, the system will display a default Voucher Number. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice. See Illustration 57 below.

Illustration 57

Listed below are the steps to transfer stock for multiple patrons at once:

This feature was added for Cooperatives that want to "park" equity. This is also usefully when transferring stock from an estate to the heirs.
Check system integration. Even though no voucher or invoice will be created for the transfer the integration must be on for the ledger to be updated.
There are several different parameters the user can use to control what stock/equity is transferred.
Select the Transfer Stock For Multiple Patrons option – See Illustration 58 on the next page.
- Transaction Date – Enter a date range if necessary to control which years of issuance is transferred.
- Patron Name ID – Enter a name id range to control whose stock/equity is transferred if necessary.
- From Stock – This field is require and controls which stock is being transferred.
- To Stock/Equity – This field is required and controls to which stock/equity the transfer is going.
- Maximum Amount – This filed is optional. This field will control how much stock will get transferred.
- The next seven fields are optional. These flags had to be set at the time of the original stock/equity transaction. These flags cannot be changed and then used to control the transfer.
- After completing the screen, press enter ok click OK.

Illustration 58

The following screen will appear (Illustration 59 on next page).
Date Option - The user will have the option of 1) using the new transaction date or 2) maintaining the original transaction date. As discussed in the previous topic, this will be the date on the transaction for the new owner. How this is answered plays into Stock/Equity paybacks. If the Cooperative has a revolving or systematic way that they payback old equity then the question is do they want this to be refunded based on the original issue date or the date of the transfer.
New Transaction Date - Do not change the New Transaction Date. This will be the voucher date so that the transaction flows to the ledger.
Remarks – The user has the option to enter remarks if they wish.
Voucher/Control Number - If Patronage is integrated to Accounts Payable, and if stock has been issued as a result of this transfer, the system will display a default Voucher Number. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice.
The voucher will be a zero voucher but the system needs this to make the proper general ledger entry.

Illustration 59

Listed below are the steps to transfer equity for multiple patrons at once:

This option works just like the pervious option with the exception that the user can transfer a range of equity source codes to a given stock or equity.
Check system integration. Even though no voucher or invoice will be created for the transfer the integration must be on for the ledger to be updated.
There several different parameters the user can use to control what stock/equity is transferred.
Select the Transfer Equity For Multiple Patrons option – See Illustration 60 on the next page.
- Transaction Date – Enter a date range if necessary to control which years of issuance is transferred.
- Patron Name ID – Enter a name id range to control whose equity is transferred if necessary.
- From Equity – This field is required and controls which equity or equities that are being transferred.
- To Stock/Equity – This field is required and controls to which stock/equity the transfer is going.
- Maximum Amount – This filed is optional. This field will control how much equity will get transferred.
- The next seven fields are optional. These flags had to be set at the time of the original stock/equity transaction. These flags cannot be changed and then used to control the transfer.
- After completing the screen, press enter ok click OK.

Illustration 60

The following screen will appear (Illustration 61 on the next page).
- Next Certificate – The field will only be present if transferring to a stock and the next certificate number defaults in.
- Date Option - The user will have the option of 1) using the new transaction date or 2) maintaining the original transaction date. Just like before, this will be the date on the transaction for the new owner. How this is answered plays into Stock/Equity paybacks. If the Cooperative has a revolving or systematic way that they payback old equity then the question is do they want this to be refunded based on the original issue date or the date of the transfer.
- New Transaction Date - Do not change the New Transaction Date. This will be the voucher date so that the transaction flows to the ledger.
- Remarks – The user has the option to enter remarks if they wish.
- Voucher/Control Number - If Patronage is integrated to Accounts Payable, and if stock has been issued as a result of this transfer, the system will display a default Voucher Number. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice.

Illustration 61

Source Allocation

The options under this menu selection are used for several purposes. The user can allocate (distribute) a fixed dollar amount to equity based on patron stock ownership, allocate a fixed dollar amount to equity based on results of the last patronage refund, allocate a fixed dollar amount to cash, stock, stock credits, equity or general reserve based on patronage activity, manually add equity to a patron's account or allocate a fixed dollar amount to equity based on a per-unit profit. The steps to do these various functions are explained below.

Source Allocation - Stock Ownership

This option will allocate a fixed dollar amount to the equity source code of the users choice based on the total dollars of stock (classes A through E) owned by each patron. See Illustration 62 on the next page.
The user must have established stock ownership for all patrons. Following is an example of an allocation assuming the following conditions:

Only Class A stock is owned by patrons.
There is $12,000 in outstanding Class A stock.
A patron owns $25 of Class A stock (25/12000, or 0.0020833 of total stock).
$20,000 is to be allocated among eligible patrons.
In this example, the patron will receive an equity allocation of $41.67 ($20,000 x 0.002083).
The entire allocation will be to chosen equity source code, with no allocation for cash, stock, or stock credits. This option does not use any parameters set up in the Patron Refund Information section of Setup.

To process the allocation follow the steps below - See Illustration 62 on the next page:

Select the menu option
Total Amount to Allocate - Enter the total dollar amount to be allocated among all stockholding patrons.
Based On - Enter "1" for Stock Ownership.
Transaction Date - Press Enter to use the default date shown, or enter the date of choice.
Remarks – The user may enter remarks if desired that will only be available when inquiring on the transaction in Account Inquiry.
Equity Source Code – Enter or select from search the equity source code to use for this allocation.
Total Value of All Stock Ownership - This value is calculated and displayed by the system for the user's information. This number represents the total value of all stock, classes A through E, held by all patrons.
Name ID & Source Allocated - After the user is finished entering the above information, the allocation will be calculated. The system will display the following for each patron:
- Total shares of stock
- Ratio of patron stock to total stock outstanding
- Dollar share of the allocation.
Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patron is processed. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice. The system will continue to assign successive numbers in sequence.
When the process is finished the user will receive a message showing the Transaction Codes.

Illustration 62

Source Allocation - Patron Refund
This option will allocate equity based on the results of any patronage refund(s) which occurred during the specified date interval. For example, if during the date interval specified, a patron received a refund which represented .25% of total dollars refunded to all patrons, that patron will receive .25% of the dollar amount of this allocation.
The entire allocation will be to the chosen equity source code, with no allocation for cash, stock, or stock credits. This option does not use any parameters set up in the Patron Refund Information section of Setup.
The user must have completed at least one patronage refund within the interval specified in Patron Refund Beginning and Ending Dates.
To process the allocation follow the steps below:

Select the menu option – See Illustration 63 below.
Total Amount to Allocate - Enter the total dollar amount to be allocated among the patrons who received a refund.
Based On - Enter "2" for Patron Refund.
Transaction Date - Press Enter to use the default date shown, or enter the date of choice.
Remarks – The user may enter remarks if desired that will only be available when inquiring on the transaction in Account Inquiry.
Refund Beginning/Ending Dates - Enter the date interval during which the refund occurred. For example, if the user last calculated a patronage refund option on April 15, 2018, and wants to use that refund as the basis for allocation, enter beginning and ending dates of 041518.
Equity Source Code – Enter or select from search the equity source code to use for this allocation.
Press enter or click OK.

Illustration 63

Total of All Patron Refunds for This Time Period - This value is calculated and displayed by the system for information only. It represents the total dollars refunded during the date interval specified in the previous field.
Name ID & Source Allocated - After the user has finished entering the above information, the allocation will be calculated. The system will display the following for each patron:
- Total refund
- Ratio of patron refund to total refund
- Dollar share of the allocation.
Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patron is processed. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice. The system will continue to assign successive numbers in sequence.

Source Allocation - Accumulated Activity
This option will allocate a refund in the form of cash, stock, stock credits, equity or general reserve. The allocation will be based upon patronage activity accumulated during the specified date range. This process also uses the Patronage Refund Information to determine who gets to participate in the allocation, what percentage of cash to allocate and how to divide the equity (stock, stock credit and/or equity). What the Source Allocation does is calculate the Alternate Source Rate for each patronage code based on each code's percentage of activity to arrive at a percentage of the dollars to be allocated. In this method the rate is always a percent of value and therefore cannot be used if some activity is to be refunded based on units.
For example, if activity under Patronage Code "FEED" represents 10% of total activity for all Patronage Codes, the Alternate Source Rate for the Patronage Code will be "10.0000". In this way, we are guaranteeing the outcome of the allocation.
Before processing the allocation do the same pre-work that you would for a patronage refund with the exception of adjusting the patronage code rates, the system will do that.
To process a Source Allocation do the following steps.

Follow Patronage Refund Steps 1 through 9.
Then select the menu option Source Allocation – See Illustration 64 on the next page.
Total Amount To Allocate – Enter the dollar amount to allocate.
Based on – Enter 3
Transaction Date - Press Enter to use the default date shown, or enter the date of choice.
Remarks – The user may enter remarks if desired.
Period Beginning/Ending Dates - Enter the date interval of the patronage activity to be selected, and upon which the allocation will be based. For example, if you wish to base your allocation on patronage activity which occurred during the last fiscal year, which runs from July 1st to June 30th, you would enter those dates as beginning and ending dates. Be certain activity is already accumulated for the date range being specified. If uncertain about whether or not activity has been accumulated, run the Un-refunded Activity report.
Preview Run - Enter "Y" and the system will calculate the allocation. Enter "N" to update files and create vouchers. If you answer Y to this question you will have to print the Patronage Codes to see the Alterative Source Rate. Then you will need to come back to this screen repeat the steps and then answer N for the system to process the allocation.
Equity Source Code - Enter the source code under which the equity will be recorded. For example, if source code "2" is defined as "Regional", and you are allocating a regional cooperative's refund among the patrons, enter "2".
Update Alternate Source Refund Rate? - (N)o is indicating that the user has adjusted the Alternate Source Rate for each active patronage code based on their calculations. If manually adjusting the rates, be certain that the total of all rates for all codes equals "100.000000", or you will not be allowed to complete the source allocation procedure. (Y)es allows the system to adjust the Alternate Source Rate for each patronage code. The system will use the following formula when adjusting rates:
- All patronage activity within the date range specified will be totaled based on the set up of the Patronage Refund Information on who gets to participate in the refund.
- Each patronage code's percentage share of total activity (from step 1) will be calculated. For example, if total activity is $1,000,000 and the patronage code "FEED" has activity totaling $200,000, then feed's share is 20%. The system will enter "20.00" for FEED's Alternate Source Rate, unless the Patronage Code has an Inactive status, in which case no change will be made.
Voucher Due Date - If Patronage is integrated with Accounts Payable, enter the Due Date to be assigned to each voucher. Note - Due Date must be equal to or greater than the Transaction Date above.
Voucher/Control Number - If Patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patron is processed. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice.

The system will continue to assign successive numbers in sequence. For each category in which the patron has activity, and for which a source refund rate exists, the system calculates the patron's share of activity.
The allocation will print on the 1099 as a refund and report in the 1099 electronic file.
Illustration 64

Allocation Example - Assume the following conditions:
- Total dollars available for allocation are $10,000.
- The category "FEED" has a Source Refund rate of "20%".
- A patron's activity in the FEED category is 0.25% of total patronage activity in that category.
- In this example, a patron's refund will be ((10,000 x 0.20) x 0.0025), or, $5.00 .
If Patronage is interfaced with Accounts Payable, print refund checks in Accounts Payable.
Print Patron Statements, if desired.

Source Allocation - Previous Equity
This option allows the user to add equity for each patron by source code and original issue date. The user must have set up the Equity Source Code(s) in the Setup Information section. This option is used to load beginning equity balances. Beginning equity balances can also be imported in.
To process the allocation follow the steps below:

Select the menu option – See Illustration 65 below.
Total Amount to Allocate - Enter the equity dollar amount for the first year in which the patron has recorded equity.
Based On - Enter "4", Previous Equity.
Transaction Date - Enter a date containing the year for which the equity is to be recorded. For example, if you are entering equity for the year 1990, you would enter "010190".
Remarks - The user may enter remarks if desired.
Name ID - Enter the ID of the patron for whom the equity is being entered.
Equity Source Code - Enter the number of the source code of the equity.

Illustration 65

Source Allocation - Per-Unit Retain Allocations
This option allows the user to calculate the Per-Unit-Retains and provides options for creating transactions. If transactions are created, the dollar amount appear in Box 3, "Per-Unit Retain Allocations", on the 1099-PATR form. In addition, this transaction will be included on the 1099 electronic file. The Per-Unit-Retains may be manually calculated and imported. See Addendum D on page 109 for steps to process through an import.
To process the allocation follow the steps below:

After selecting the menu option the following screen will appear, see Illustration 66 on next page which shows the default parameters.
If creating, for a single patron, enter the patron name id, otherwise leave blank.
Per-Unit-Retains are always reported on the calendar year.
Enter in the same flag that controls who gets to participate in the Refund.
For the parameter "Post?", there are 4 options
- Option N – Creates a report AND does not create any transactions.
- Option 1 – Post transactions at the gross value of the grain purchased from the patron.
- Option 2 – Post transactions at the value of the grain purchased from the patron.
- Option 3 – Post transactions at the net value of the grain purchased from the patron.

Illustration 66

Option N will create the following report (Illustration 67-A below and 67-B on next page).

Illustration 67-A

Illustration 67-B

Stock/Equity Payback

This option allows the user to pay back or adjust the patron's equity, stock and stock credits. You can only payback stock with this option if there is equity to payback and you are paying back All stock and/or stock credits. Selection of eligible patrons is based on the a variety of parameters. There are three screens to go through and the steps for each are as follows.

Stock/Equity Payback, Screen #1, Illustration 68 on next page.

This screen is used to help define who will be entitled to the stock/equity payback.
Patron ID - Enter the beginning and ending patron ID's in the range of patrons for whom the payback is for. If left blank, all patrons with stock/equity will be eligible for payback.
Name ID Type - If patrons are being selected for payback based on data within the Name ID Type field, enter appropriate selection criteria. If not using, leave blank.
Beginning/Ending NAM Misc. Fields 1 through 6 - If any of the six Name/Address Miscellaneous codes are to be used to select the patrons for the payback, enter appropriate selection criteria on any of the six lines. If not using these fields, leave blank. These fields can now be updated with the new compress activity feature for transactions. See the previous discussion on page 31.
Equity Source Code - If the payback is to be restricted to equity within a specific source code range, enter that range on this line.

Illustration 68

Stock/Equity Payback, Screen #2, Illustration 69 on next page.

Use This Range? – "Y" tells the system to use the information on that line to determine which transactions to include in the payback based on the other parameters entered for that line. "N" excludes that line of information. By using multiple lines, the user can payback equity for different years at different rates.
Beginning/Ending Birth Date (User Defined NAM Field #1) - This field allows the user to pay back stock/equity based on the entry for each patron in Name/Address User Defined Field #1. Enter the range of values within which a patron's value for this field must fall in order for the system to pay back that patron's stock/equity. The data must be entered as YYYY-MM-DD. If not using this field, leave blank.
Beginning/Ending Transaction Date - The equity transaction date represents the date when the equity was originally issued.
Equity Payback Percent – Enter in the percentage amount of the original transaction that is being paid back. The percentage number can have up to four decimals.

Illustration 69

Stock/Equity Payback, Screen #3, Illustration 70 on the next page.

Voucher Due Date - This prompt appears only if interfacing with Accounts Payable. Enter the due date to be assigned to each voucher.
Transaction Date - Press Enter to use today's date or enter the date of choice.
Percent Paid by Check - Press Enter to accept the default of 100%. If the user is 'writing off' a portion of stock/equity and paying the remainder by check, they may enter a number less than 100; in this case, the write-off portion of the payback will be posted to the Stock Adjustment account as defined in system integration.
Minimum Check Amount – Press Enter to accept the default of .00 or enter a dollar amount of choice. If the amount of the payback is less than this minimum check amount the patron is ignored. Nothing is paid back or written off for that patron. The patron is skipped.
Include Stock? – The options here are Y, N or O. Enter "Y" opposite each class of stock and stock credits to be included in the payback at the present value. If Y, stock and stock credits will be included only if the payback causes the patron to have no other equity remaining. If N, stock and stock credits will not be paid back. Enter O opposite each class of stock to be included in the payback at the original price. This option is used if stock was issued and then the par value was changed and additional stock issued.
The user can add remarks if they desire. The remarks can only be seen when drilling down on the transaction in Account Balance Inquire.
The user has the ability to enter a custom voucher description. The default is "Stock/Equity Payback"
Voucher/Control Number - If patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patron is processed. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice. The system will continue to assign successive numbers in sequence.

Illustration 70

Interest Payments

This option allows the user to pay interest on any or all stock and equity but does not pay on stock credits. See Illustration 71 on the next page and Illustration 72 on page 73.

The steps to create an interest payment are as follows.

Voucher Due Date - This prompt appears only if interfacing with Accounts Payable. Press Enter to accept the default of current date or enter the due date of choice to be assigned to each voucher.

Transaction Date – The system assigns the current date as the transaction date. Press Enter to accept he date displayed, or enter the date of choice.
The screen then displays each class of stock and equity and the percentage of interest that was set-up in Dividends/Interest Rates. To the right, enter in a Y to indicate which class of stock or equity to pay interest, an N results in no interest being calculated or paid for that class.
Remarks can be entered if necessary. The remarks can only be seen when drilling down on the transaction in Account Balance Inquire.
After pressing enter or clicking OK the system will calculates the interest to be paid to the first patron, display the information for the user to see.
Voucher/Control Number - If patronage is integrated with Accounts Payable, the system will display a default Voucher Number after the first patron is processed. 1) Press Enter to accept the voucher number displayed, or 2) blank out and press Enter to display the next sequential control number, or 3) enter an Accounts Payable voucher or control number of choice. The system will continue to assign successive numbers in sequence.
If an interest payment has already been processed for the transaction date entered, the system will issue a warning and ask the user if they want to issue another one. See Illustration 73 on the next page.

Illustration 71

Illustration 72

Illustration 73

Reverse Transactions

The system provides the ability to reverse transactions by entering in the range of transaction numbers to be reversed. If the voucher/invoice has been paid then the payment needs to be reversed in Accounts Payable/Accounts Receivable before the transaction can be reversed because this process reverses the voucher/invoice as well. Before reversing the transactions make sure you are in the location for patronage transactions. To find what location this is go to Patronage Setup Information and pull up the Stock Class Information screen.

When reversing transaction, the system does not make an offset entry. Therefore, if you are reversing across month ends, a manual ledger entry will need to be made to book the reversal.
Things to remember:

It is recommended that you make a copy of the REFUNDED.PAT file before reversing
Always double check the number range that has been entered.
After entering the Transaction Number (Illustration 74 below) click ok.
See Illustration 75 below, you have to answer the question "Reverse This Transaction". If you answer Y then you will need to answer the question for each transaction that is to be reversed. If you answer A for All, then all transaction with the range will be reversed.

Illustration 74

Illustration 75

Chapter 4: Account Balance Inquiry

Account balance inquiry works in patronage just like it does in Accounts Payable and Accounts Receivable. You can see the stock balances by class and the equity balance as a total of all equity, view transaction history, activity history and with an edit feature there is access to the pass-through credits. This is also where you can correct any out of balances. See Illustration 76 below.

Illustration 76

Stock and Equity Balances

This option allows the user to view stock, stock credit and equity values for one patron and to view the transactions for a given stock class or equity.

By selecting one of the stock classes you can see the transactions that make up the total. In this case the patron was sold two shares of stock and he earned two shares with a refund. See Illustration 77 on the next page. You can further drill down on the transaction and see additional information. See illustration 78 on the next page. From this screen you can see the voucher, the activity and any remarks.

Illustration 77

If you select the voucher you can further drill down to see the ledger distribution and the disbursement. See Illustration 79 and 80 on the next page. Illustration 81 on page 79 shows the check detail.
Illustration 78 – Transaction Detail

Illustration 79 – Voucher Detail

Illustration 80 – Ledger Distribution

Illustration 81 – Check Detail

By selecting Patron Equity you can see the total for each equity source code (Illustration 82 below).Then you can select one of the equity source codes to see how the equity was acquired, see Illustration 83 below. You can drill down further to see the voucher and any remarks. See Illustration 84 on the next page. Just like with the stock transaction above you can drill down further and see the voucher, ledger detail and disbursement detail.
Illustration 82

Illustration 83

Illustration 84

Transaction History
This option allows the user to view a patron's transaction history not yet purged. Then selecting this option the user will see Illustration 85 on the next page. The Summary Button will give a total of all transactions by type, see Illustration 86 on the next page.

Illustration 85

Illustration 86

There is also a Filter Button (Illustration 87 below) which will allow the user to see transactions in various ways. The things that can be filter on are as follows:

Beginning and Ending Dates
Transaction Type
- Refund
- Dividend
- Sold
- Purchase
- Transfer
- Allocation
- Payback
- Interest
Distribution Type
- Stock
- Stock Credit
- Amount Payable
- Refund Amount
- Dividend Amount
- Adjustment
- Equity
- Reserve
- Retain Allocation
- Interest Amount
Stock Class – This field is searchable
Equity Source Code – This field is searchable
Transaction Number
Cert/Equity Number

Illustration 87

In the example shown (Illustrations 88 and 89 on the next page) the filler Equity Source Code was used for Local Refund. As before you can drill down on one of the transactions and see the additional information as previously discussed.
Illustration 88

Illustration 89

Activity History

See the discussion beginning on page 37.

Chapter 5: REPORTING

1099 REPORTING

Pass Through Credits

A pass through credit is a credit that the Co-operative can use to lower its tax liability. If the Co-operative does not use any or all of the credit then it can pass it on to the patrons and the credit is reported on the 1099-PATR. There are seven credits at this time that AGRIS can handle. They are:

Alternative Minimum Tax (AMT)
Low Sulfur Diesel Tax
Small Ethanol Producer
Indian Employment
Small Refiner Coops
Qualified Production Activities (also called DPAD)
Small Agri-Biodiesel Producer.

The system doesn't make a transaction for the pass through credits so it is important to keep a copy of the report that is generated. This will be important if you have to reprint a 1099 for a patron for a prior year. The system does hold the information until the option to Clear All Totals is performed.
For this discussion we will look at Alternative Minimum Tax and Qualified Production Activities. The pass through credits can be calculated by the system or imported. First we will discuss how the system calculates the credit.
Before allocating any pass through credits be sure and clear all totals. This only needs to be done once per 1099 reporting period. If you have entered credit for one pass-through and need to add another, DO NOT clear All Totals because it will wipe out the first pass-through credit. If you need to correct all of the credits then clear all totals. If you only need to correct the total for only a few patrons there is another way to edit the credit that we will discuss later. To do this go to Patronage and select 1099 Reporting and then select the menu option Pass Through Credits. The following screen will appear (Illustration 90 on following page). Select Option 1 – Clear All Totals.

Illustration 90

Alternative Minimum Tax
A prorated share of a co-op's alternative minimum tax (AMT) can be passed on to patrons. The amount is not a part of the refund, does not impact Accounts Receivable or Accounts Payable and does not change the patron's stock/equity balances, but the patron will have to report it as income.
The formula for calculating each patron's share of the AMT is: (Individual patronage allocation divided by Total patronage amount) times Alternative minimum tax allocated = Patron's alternative minimum tax allocation. The steps for processing the AMT are as follows:

Select Option 2 – Alternative Minimum Tax (see Illustration 91 on the next page).
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 92, also found on the next page, is an example of the report.

Illustration 91

Illustration 92

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 90 select Option 7 – Qualified Production Activities.
The steps for processing are as follows (see Illustration 93 below):

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 94 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 93

Illustration 94

Below (Illustration 95) is an example of the Qualified Production Activities report
Illustration 95

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 (Illustration 96) on the next page will appear. To make the change click the Edit button which will open up the fields to be edited. See Illustration 97 below.
Illustration 96

Illustration 97

Importing a Pass-Through Credit - 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 will appear. Scroll down until you reach the PAT package, here select the import description Pass-Through Credits.
The file layout (illustration 98 below) 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 an example of a spreadsheet on the next page, Illustration 99.
Illustration 98

Illustration 99

Print 1099 Forms

This selection allows the user to print 1099 patronage and dividend forms. Make sure before printing the forms that you have processed any necessary Pass Through Credits and any Per-Unit Retains. The system will not print: a) any 1099-PATR for less than the amount specified in the Minimum 1099 Amount field on the Patron Refund Information (Setup) screen or b) any 1099-DIV for less than the amount specified in the Minimum 1099 Amount field on the Dividend Information (Setup) screen. The information is taken directly from the patronage transaction record and cannot be edited. Therefore, an incorrect 1099 can only be remedied by reversing the transaction and taking appropriate correction steps. The user may print 1099s as often as necessary. See Illustration 100 on the next page.
Before beginning to print the 1099s be certain that the company's name and address information is correctly entered as follows to ensure it is included correctly on the 1099:

Company Name – Uses default dataset name as entered in Maintenance, Dataset Maintenance.
Company Address – The system obtains the default patronage location from Patronage Setup Information, Stock Class Information; then uses the address as entered for this location under Maintenance, Location Maintenance.

Information for these forms is generated by the following transactions with a transaction date in the calendar year:

1099-PATR

Patronage refunds
Source allocations (all types).

1099-DIV – Dividend payments

Steps for printing the 1099s are as follows

From the Patronage Menu select 1099 Reporting and then select Print 1099 Forms
Transaction Date – Enter the beginning and ending dates which define the range of transactions to be included on these 1099.
Patron Name ID – An entry is only required here if printing the 1099 for a select patron or patrons.
1099 Type – Select the type of form to print. The choices are:

1- 1099-PATR preprinted form
2 – 1099-DIV preprinted form
3- 1099-PATR/DIV Substitute Form

Print Total 1099 Form – The responses are Y or N. This will print a form with the totals for all boxes of the form.
Mask Customer Federal ID – The responses are Y or N. This replaces the first 5 characters of the federal id number with X.
Federal Tax ID Number – This is the number of the reporting entity.

Illustration 100

1099 Electronic Reporting

This selection allows the user to create a file containing 1099 information for submission to the IRS. To be able to file in this manner the organization must first obtain a Transmitter Number from the IRS. The form to use to request this Transmitter Number is Form 4419, Application for Filing Information Returns Electronically/Magnetically and can be ordered from the IRS, found at their web site at or obtained from an accounting firm. The system will not copy any 1099 record to this diskette that is:

For 1099-PATR less than the amount specified in the Minimum 1099 Amount field on the Patron Refund Information (Setup) screen.
For 1099-DIV less than the amount specified in the Minimum 1099 Amount field on the Dividend Information (Setup) screen

Information is taken directly from the patronage transaction record and cannot be edited. Therefore, an incorrect 1099 can only be remedied by reversing the transaction and taking appropriate correction steps. The 1099 diskette can be created as often as necessary.
Before creating the 1099 diskette be certain that the company's name and address information is correctly entered as follows to ensure it is included correctly on the 1099:

Company Name – Uses default dataset name as entered in Maintenance, Dataset Maintenance.
Company Address – The system obtains the default patronage location from Patronage Setup Information, Stock Class Information; then uses the address as entered for this location under Maintenance, Location Maintenance.

The steps for creating the file are as follows (Illustration 101 on page 93):

Transaction Date – Enter the beginning and ending dates which define the range of transactions to be included on these 1099's.
Patron Name ID – The user has the ability to enter in a name id range if necessary.
1099 Type – Select the type of information to report.
1. 1 - To submit only patronage refund and source allocation data to the IRS.
2. 2 - To submit only dividend payment data to the IRS.
3. 3 - To submit patronage refund, source allocation, and dividend payment data to the IRS.
File Location (Full Path) – Enter the path where you want to file to be created
Filing Year – Enter the four digit year for which the 1099s are being filed.
Transmitter Control Code - This field is required by the IRS and is the number that was provided by them.
Federal Tax ID – This is the organizations Federal Tax ID number and is required in order to create a file.
Type of File Indicator – The choices are:
1. O - If this is the original submission
2. C - If this is a correction submission
3. R - If this is a replacement correction submission
4. T - If this is a test submission
Combined Federal/State? – If answered with a Y then the IRS will share the information with the necessary states. If answered with an N then the user will need to file the information with the state.
Address Line to Print? – The Name/Address system allows the user to enter two address lines for a Name ID, but the 1099 record has space for only one address line. This option indicates which address line to use from Name/Address for the 1099 filing. Enter either 1 or 2 to use the first or second address line respectively, or 3 to use the first available address line (in the event one or the other of the address lines is blank in Name/Address).
Contact Name – Enter in the name of the person at the organization that an IRS representative can speak with if they have questions about the file.

Illustration 101

OTHER REPORTS

Activity Reports

Patron Activity Report
Un-refunded Activity Report
Product Activity Report – Detail - If activity doesn't balance, use this report and limit it to the time frame and patronage code that doesn't balance.
Product Activity Report – Summary - Use this report to balance and this is the report that you give to the auditors, once for all activity and once for those eligible to participate in the refund.
Patron Volume Comparison
Customer Purchase Summary – Location
Customer Purchase Summary – Patronage Code
Projected Refund Summary – By Patron - Print the report after all activity is balanced, the rates have been updated on the patronage codes and the Patron Refund Information has been updated. By looking at the last column of this report you will know how close you are to the dollars set aside by the board for the total refund (cash and equity).
Patronage Refund Report (With Activity)
Patronage Activity Export File
Patronage Activity Export Spreadsheet
Un-refunded Activity Spreadsheet
Product Summary Spreadsheet
Projected Refund Summary Spreadsheet

Transaction Reports

Patronage Transactions Report
Patronage Refunds Report
Stock Transactions Report
Stock Dividends Report
Stock Sales Report
Stock Purchase Report
Stock/Equity Report
Source Allocation Report
Stock/Equity Payback Report
Active Stock Certificates Report
Stock Certificate History Report
Equity Transaction Report
Interest Payments Report
Equity Transactions By Patron By Source Code
Equity Transaction Summary By Source Code By Date
Active Stock/Equity By Patron
Active Stock/Equity By Class
Active Stock/Equity By Year
Patron Stock Balancing Report
Patron Equity Balancing Report
Patron Distribution Export File
Patron Distribution Export Spreadsheet
Patron Stock/Equity Spreadsheet
Patron Stock/Equity Summary Spreadsheet
Patron Transaction Detail Spreadsheet

Patron Statement

See Illustration 102 on the next page for the parameters that can be used to run this report. Prior to having the patronage check form in Accounts Payable, this report was sent with the checks to inform the patron of his activity and how it was refund along with his new stock/equity balances. The remarks here print on the report.

Illustration 102

High/Low Volume Report

See Illustration 103 below for the parameters that can be used to run this report after clicking ok, the next screen that displays is shown in Illustration 104 which is on the next page. This report can be used to find the top 10 customers, it summarizes activity based on the unit of measure.
Illustration 103

Illustration 104

Activity Audit Reports

Activity Audit Report - By Patron
Activity Audit Report - By Product
Activity Audit Report Spreadsheet

Transaction Audit Reports

Audit Report of Reversed Transactions

Advance Reports

Stock/Equity Balance Report
Per-Unit-Retain Allocation Report
Per-Unit-Retain Allocation, One Name ID
Patronage Codes
Equity Source Codes
Setup Options – Patronage Accounting
Per-Unit-Retains Allocation Export
Pass Through Credit Export
Voting Flag Export/Import with Activity
Stock/Equity Balance Export Spreadsheet
Purch/Sales Activity Export Spreadsheet

ADDENDUM A

Product Categories Page:1 of 2
AG SUPPLY COOPERATIVE 10/26/2015 9:35 AM
Category
Recap CommonLedgerStock Purch Sales
Product Category Category Type UOM UOM UOM UOM UOM
A1LIQUID FERTILIZER A1FertilizerLBS TONS TONS TONS TONS
A2DRY FERTILIZER A2FertilizerLBS TONS TONS TONS TONS
A3ANHYDROUS A3FertilizerLBS TONS TONS TONS TONS
A5LIQUID CHEMICAL A5ChemicalGAL LOZ LOZ LOZ LOZ
A6DRY CHEMICAL A6ChemicalLBS LBS LBS LBS LBS
A8APPLICATION SERVICE A8 ServiceACRE ACRE ACRE ACRE ACRE
A9AGY SERVICES A9ServiceEACH EACH EACH EACH EACH
AC CONTAINERS ACOtherEACH EACH EACH EACH EACH
C1CORN - COMMODITY C1OtherLBS BU56 BU56 BU56 BU56
C3Wheat - Commodity C3OtherLBS LBS LBS LBS LBS
C5MILO - COMMODITY C5OtherLBS BU56 BU56 BU56 BU56
C7OATS C7OtherLBS BU36 BU36 BU36 BU36
C9SOYBEAN - COMMODITY C9OtherLBS LBS LBS LBS LBS
D1DDG D1SupplyLBS TONS TONS TONS TONS
F1BOVINE FEED F1SupplyLBS LBS LBS LBS LBS
F2EQUINE FEED F2SupplyLBS LBS LBS LBS LBS
F4MISCELLANEOUS FEED FFSupplyEACH EACH EACH EACH EACH
F6SALT & MINERAL FFOtherEACH EACH EACH EACH EACH
F8FEED INGREDIENTS F8OtherLBS LBS LBS LBS LBS
F9FEEDMILL SERVICES F9ServiceEACH EACH EACH EACH EACH
FBBags FBOtherEACH EACH EACH EACH EACH
FFFEED RECAP FFOtherLBS LBS LBS LBS LBS
FSFARM SUPPLIES RECAP FSOtherEACH EACH EACH EACH EACH
G1 FENCING FSSupplyEACH EACH EACH EACH EACH
G2 FEEDERS FSSupplyEACH EACH EACH EACH EACH
G3 STOCK TANKS FSSupplyEACH EACH EACH EACH EACH
G5 GATES & PANELS FS SupplyEACH EACH EACH EACH EACH
G6 CHUTES FSSupplyEACH EACH EACH EACH EACH
G7 TACK FSSupplyEACH EACH EACH EACH EACH
G8 SUPPLIES FSSupplyEACH EACH EACH EACH EACH
G9 ANIMAL HEALTH FSSupplyEACH EACH EACH EACH EACH
N1OIL & GREASE N1SupplyEACH EACH EACH EACH EACH
N3TIRES N3SupplyEACH EACH EACH EACH EACH
N5TBA N5OtherEACH EACH EACH EACH EACH
N9STATION SERVICES N9ServiceEACH EACH EACH EACH EACH
P1GASOLINE & ETHANOL P1SupplyGAL GAL GAL GAL GAL
P2FARM DIESEL P2SupplyGAL GAL GAL GAL GAL
P3ROAD DIESEL P3SupplyGAL GAL GAL GAL GAL
P5PROPANE P5SupplyGAL GAL GAL GAL GAL
P8Federal Road Tax P8ServiceEACH EACH EACH EACH EACH
P9 State Road Tax P9ServiceEACH EACH EACH EACH EACH
S1GROCERY STOtherEACH EACH EACH EACH EACH
S2DELI STOtherEACH EACH EACH EACH EACH
S3DAIRY STOtherEACH EACH EACH EACH EACH
S4MISCELLANEOUS STOtherEACH EACH EACH EACH EACH
S5BEVEARGE STOtherEACH EACH EACH EACH EACH
S6BEER STOtherEACH EACH EACH EACH EACH
S7CANDY STOtherEACH EACH EACH EACH EACH
S8TOBACCO STOtherEACH EACH EACH EACH EACH
S9LOTTERY STOtherEACH EACH EACH EACH EACH
SA AUTO - C-STORE STOtherEACH EACH EACH EACH EACH
SH HEALTH/BEAUTY - C-STORE STOtherEACH EACH EACH EACH EACH
STC-STORE RECAP STOtherEACH EACH EACH EACH EACH
Total Product Categories:63INV-Advanced-SR---80000

3820 Mansell Road, Suite 375
Alpharetta, GA 30022 USA
ADDENDUM B

PATRONAGE REFUND PROCEDURES
These procedures are general guidelines only, as each situation can be different. If you have other questions or need things clarified, please call customer support at 800-366-2474 or e-mail mysupport@culturatech.com.

Are the flags in Name/Address correct for the patrons? If not, make the necessary corrections. Be sure for all name ids the question "Accumulate Patronage" on the General Information screen is answered with a Y or W. The W indicates that there is not a social security/federal id number or the patron is subject to backup withholding.
1. In Name/Address on the Relationship screen you can set up Patronage Split information for those accounts whose activity needs to go to another name id(s), such as partnerships or if a patron has multiple accounts and you want all of his activity under one account.

If you accumulate activity each month as you progress through the year, be sure that if you add a new product category AND it is not a part of an existing recap category that you set up the new patronage code. If you add a new location AND you have the patronage codes set up by location, you will have to add the patronage codes for the new location before accumulating the activity for the period.

If you accumulate activity at the end of the fiscal, review the following for any changes.
1. Has a new location been added?
2. Has any new product categories been added?
3. Has any new commodity codes or discount codes been added?
4. If yes to any of these questions, please review the patronage code set up and add any that are necessary. For commodity discount codes, you only need to add the ones you want to pay patronage on, such as storage, drying and etc. See Step 4 below for how to add a patronage code.

To add a patronage code go to Patronage
1. Select Patronage Codes from the menu and then chose View/Edit Patronage Codes.
2. Click on the insert button, the following screen appears.

1. For inventory activity the type in an S for Purchase/Sales and the Accounting type 1s 1.
2. For commodity activity the type in a P for Purchase/Sales, use accounting type 2 – 4 for grain activity, which are explained below and 5 discount codes.
  1. Activity type 2 – Commodity Received. This is for grain delivered by the patron AND is on a delivery sheet. The activity is accumulated based on the delivery sheet date.
  2. Activity type 3 – Commodity Purchase/Sold. This is for grain that has been applied to a contract AND on a delivery sheet and/or settled. The activity is accumulated based on the date of application to the contract or date of delivery sheet, whichever is latest.
  3. Activity type 4 – Commodity Settled. This is for grain settled and is accumulated based on the settlement date.
3. The next portion on the screen is where you will add the product category, commodity code or discount code. Remember to remove the location code if you are not paying different rates by location.

Accumulate the activity.
1. To accumulate activity chose the Process Activity menu option and then the Accumulate Activity menu option
2. The following screen will appear.

1. Put in the date range for which you want to accumulate the activity. We recommend that you accumulate by month regardless if you wait until the end of the fiscal year to accumulate. This makes balancing much easier.

Balance the accumulation of product sales to ledger and grain purchases and discounts to commodity accounting. The inventory activity will be balanced to the respective product category sales on the financial reports and grain purchase to a report from Commodity Management, the report to use will depend on how you are accumulating the activity.
1. Reports to print
  1. Ledger – Use the financial statements or trial balance.
  2. Commodity Accounting – The report you run depends on the accounting type that you are using to accumulate the activity.
    1. Accounting type 2 "Grain Received" – Use the standard Delivery Sheet Report. You will need to run the report twice, once for the active delivery sheets and again for the voided delivery sheets, these amounts will need to be netted together to get the correct amount. Adjusting the parameters as follows:
      1. For active delivery sheets
        Paid Status – P – U
        Purchase/Sale – P – P
        Application Type – Leave blank
        Apply Date – Use the date range of the activity to be balanced
      2. For voided delivery sheets
        Paid Status – V – V
        Purchase/Sale – P – P
        Void date – Use the date range of the activity to be balanced
    2. Accounting type 3 "Grain Purchased/Sold" – Use the standard Delivery Sheet Report. You will need to run the report twice, once for the active delivery sheets and again for the voided delivery sheets, these amounts will need to be netted together to get the correct amount. Adjusting the parameters as follows:
      1. Active delivery sheets
        Paid Status – P – U
        Purchase/Sale – P – P
        Application Type – AA – ZZ
        Delivery Sheet Date – Use the date range of the activity to be balanced
      2. For voided delivery sheets
        Paid Status – V – V
        Purchase/Sale – P – P
        Application Type – AA – ZZ
        Void date – Use the date range of the activity to be balanced
    3. Accounting type 4 "Grain Settled" – Use the standard Settlement Report adjusting the parameters as follows:
      1. Print Status – P – U
      2. Purchase/Sale – P – P
      3. Settlement Date – Use the date range of the activity to be balanced
    4. Accounting type 5 "Commodity Discounts" – Use the standard Delivery Sheet Report adjusting the parameters as follows:
      1. Paid Status – P – U
      2. Purchase/Sales – P – P
      3. Settlement Date – Use the dare range of the activity to be balanced.
      4. On the Additional Options screen adjust the following parameters:
        Deduction Status – P – P
        Deduction Type – This is the discount code of the activity
        Answer Y to the question "Include Only The Sheets With These Deductions".

1. 1. Patronage – Use the standard Product Activity Report – Summary. Entry the date range of the activity to be balanced.
2. If you are accumulating the activity as you progress through the year you can balance each month as you go along or at the end of the year. If you are accumulating the activity at the end of the fiscal year then balance first for the whole year. If there are problems then balance by the month to find where the problem is.
After everything is balanced, compress the activity by going to Process Activity and the choose Compress Activity. Be sure to answer Y to the "Compress Activity" question.
Transfer any activity that needs to be transferred. The system looks at the patronage split information in Name/Address to move the activity.
Now is the time to add any accrual activity that needs to be accounted for (i.e. storage or activity from another data set or system).
To determine storage accruals run the Storage Charge process without updating. See the print screen below.

Your auditor may require reports that show member business vs. non-member business. The report to use is the standard activity report Product Activity Report – Summary. Print the report once with all activity and then again adjusting the parameters for only member business using the flags that are set up in Name/Address to control who is eligible to participate in the refund.
Put the correct refund rates on the patronage codes. To do this go to Patronage Codes > View/Edit Patronage Codes. Select each patronage code and enter the rate and the rate base.

In Set up Information verify the Patron Refund Information and change what is necessary.
Print the Projected Refund Summary - by Patron report. Be sure to adjust the parameters to only include those people who are eligible to participate in the refund. Check the total of the last column (Actual Refund) of this report to verify that the refund is in tolerance of what was allocated for the refund (cash and equity). Review this information to be sure that the patrons included are correct.

In Set up Information > System Integration check to be sure that it is turned on for Patronage Refunds so that vouchers will be created in AP.
You are now ready to create the Patronage Refund Transactions.
After the transactions have been created you will need to go to AP to print the checks.

3820 Mansell Road, Suite 375
Alpharetta, GA 30022 USA

ADDENDUM C

PROCESS TO CORRECT PATRONAGE CHECKS
(When only one refund was issued)

Patronage checks were issued and then we find out that the activity for an account should have been split between two or more people. How to correct this depends on a couple of things: 1. Was the check returned and 2. Do the people currently have a refund in their own right?
Follow These Steps:

If the check was returned, void the check in Accounts Payable (AP).
1. In AP go to Disbursements, select Disbursement Processing.
2. Select Option 3 – Reverse Disbursements/Applications.
3. Select Option 1 – Reverse One Disbursement
4. Enter the patrons name id and use a current date for the reversal.
5. Enter the correct location code and the check number, click Ok.
6. Choose Option 1 – Reverse/Void All Applications Of This Check.
If the check was not returned, reverse the check to hold in Accounts Payable.
1. In AP go to Disbursements, select Disbursement Processing.
2. Select Option 3 – Reverse Disbursements/Applications.
3. Select Option 1 – Reverse One Disbursement
4. Enter the patrons name id and use a current date for the reversal.
5. Enter the correct location code and the check number, click Ok.
6. Choose Option 3 – Reverse This Application And Apply To Hold.

If any of the parties received a refund in their own right, their check will need to be reversed to hold as well.
Find the transaction number of the patronage refund for each of the parties involved.
1. In Patronage go to Account Balance Inquiry
2. Enter the patron's name id
3. Choose Option 7 – Transaction History
4. Locate the refund and make note of the number

Reverse these transactions in Patronage one transaction at a time (this also reverses the vouchers in AP).
1. In Patronage go to Patronage Transactions then select Reverse Transactions.
2. Reverse the transactions one at a time.
3. Answer yes to the question "Reverse This Transaction", click Ok.
Transfer the activity from the joint account to each of the people involved.
1. In Patronage go to Process Activity then select Transfer Activity.
2. If the patronage split is set up in Name/Address, select Option 2 – Transfer Multiple Patrons At Once. The system will transfer all of the activity as specified in patronage splits.
3. If the patronage split is not set up in Name/Address, select Option 1 – Transfer One Patron At A Time.
4. Enter the name id of the patron from who the activity is being transferred.
5. Select the activity to be transferred.
  1. If everything is to be transferred, click on the Select All button.
  2. The percentage of the total activity being transferred can be changed if necessary. Click Ok.
  3. On the next screen click on the Next button.
  4. Enter the name id(s) the activity is to be transferred to, then enter the percentage that each person should get.
  5. If only certain activity is to be transferred, highlight the activity line and click on the Select button.
  6. On the next screen enter in the necessary information if transferring less than 100 percent.
  7. Click Ok this will take you back to the previous screen where you can select additional activity to transfer.
  8. Once all of the activity to be transferred has been selected, click Next.
  9. Follow step iv from above.
Process another refund.
1. In Patronage go to Patronage Transactions then select Patronage Refunds.
2. Enter the date range of the activity for which the refund is for.
3. Select an Equity Source Code
4. Use a current date if it is still the calendar year for which the 1099 needs to be created.
5. If the system date is a date outside the calendar for which the 1099 needs to be created for then change the transaction date to be a date within the calendar year of the 1099.
6. Click Ok and the transactions will be created.
If the check was returned, process a disbursement.
If the check(s) was not returned follow the steps below.
1. For the people who had refunds in their own right, apply their check to the new voucher.
2. For the joint account where the check was not returned, enter a voucher to the joint account coded to a clearing account and apply the check to this new voucher. For each of the parties, enter a credit voucher for the amount of the new patronage voucher, coded to the same clearing account as the voucher. Apply the credit voucher to the patronage voucher.

3820 Mansell Road, Suite 375
Alpharetta, GA 30022 USA
ADDENDUM D

Steps to Process Per-Unit-Retains Manually

The purpose of this document is to provide instructions on how to create a file that can be imported into the Patronage system for reporting the Section 199 Per-Unit-Retains that are to be reported in Box 3 of the 1099-PATR form.
It is our understanding that gross dollars are to be reported for the activity in a given calendar year. Please check with your auditor to verify. Some other things to consider is how to handle deferred payment contracts and advances.
Attached are two files. The GRNSTRPT file contains two spreadsheets the user will need to retrieve the information for the 1099s. Place the file in the GRN folder under the support folder, which is under the AGRIS folder. An example of the path would be something like \\servername\apps\agris\support\grn (file://servername/apps/agris/support/grn). The NAMIDRPT file contains a spreadsheet that can be ran to determine who is eligible to receive the Per-Unit-Retains. Again, place the file in the NAM folder under the support folder. Then in AGRIS go to utilities > transfer reports/forms then choose option 4 Transfer From Support. Transfer each of these reports. The reports will now be in the Grain package as a user-defined settlement reports and in the Name/Address package as a user-defined report. Of the grain reports, one report is for grain purchased for the time period to be reported and one report is for grain purchased in a prior time period but voided and reprocessed in the time period used for Report #1. The report names are Settlement Report For Per-Unit-Retains, RETAINS.CSV (Report #1) and Settlement Rpt For Void Per-Unit-Retains, VRETAINS.CSV (Report #2).
Parameters for running report #1

If the user settles any purchase settlements to accounts payable leave the Settlement Type blank.
If the user does not settle any purchase settlements to accounts payable then the Settlement Type can be set to C - C. This will eliminate discounts settlements where an invoice is created.
The only parameter that needs to be changed is the Settlement Date. This date needs to be for the time period of the activity that you want to use for the per-unit-retains. Example: 010109 – 123109
Use this report to build the import file.

Parameters for running report #2
The purpose of this report is to determine if there is any activity that was settled before the time period used for Report #1 but reversed in the time period of Report #1 and resettled. This information will be used to reduce the activity on the first report.

If the user settles any purchase settlements to accounts payable leave the Settlement Type blank.
If the user does not settle any purchase settlements to accounts payable then the Settlement Type can be set to C - C. This will eliminate discounts settlements where an invoice is created.
Set the Ending Settlement Date prior to the time frame for which you are reporting.

Example: blank - 123108

Set the Void Date to the same time frame as the time period used in Report #1.

Example: 010109 – 123109
Steps to Create the Import File using Report #1

After printing Report #1, remove customers who are not eligible (such as non-members, non-consenters, other Co-ops, and etc.). You can run a Name/Address report to determine who is eligible.
Format column G as a numeric field with 2 decimals.
Use Report #2 and the discount information in columns N and O of Report #1 to make any

necessary adjustments to column G of Report #1.

Replace the data in columns C and D with a valid date for the year in which you are reporting

the Per-Unit-Retains. Example: 091231.

Insert 2 columns between columns D and E. Column E will become column G
Label the new column E as Location. Verify what location you have set up in patronage and place that location code in this column (Patronage > Set up Information > Stock Class Information. The location code is located at the bottom of the screen).
Label the new column F as Tran # and leave blank.
Insert 5 columns between H and I. Column I will become column N
Delete the information in all the columns after column N.
If there are any rows on the report that do not have PATR1 in column A they need to be deleted.
Save the report to My Documents or to the user's desktop and then copy it into the data set folder and do the import.

Reports:

Example of the Retains Report which has to be modified before importing

Example of modify report – ready for import.

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