PROCESS TO CORRECT PATRONAGE CHECKS

Use this process when only one refund was issued

Scenario: 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.