Patronage - Estate Closeout

Patronage – Estate Closeout

Contents

1 1. Research – Patronage Account Balance Inquiry
2 2. Name/Address – Setup Patronage Split for future refunds.
3 3. Transfer remaining unpaid activity to the heirs.
4 4. Transfer Existing Stock/Equity to the heirs.
5 5. Payout Stock/Equity if the Heirs or Estate is closing their account.

1. Research – Patronage Account Balance Inquiry

Research what stock/equity/activity the estate is assigned to their Patronage account.
Pat > Account Balance Inquiry > Select Estate name Id.
Identify Existing Stock/Equity/Activity.

2. Name/Address – Setup Patronage Split for future refunds.

Setup the Patronage split so any future activity gathered/refunded will go to the heirs. This will keep the coop from issuing a refund to the estate name id.

Depending on the co-op bylaws, determine if the heirs are eligible for patronage refunds from the estate activity that the co-op has not yet determined will be refunded AFTER the estate is closed. If Yes, mark their name/address flags appropriately to mark them as a patron available for refund. You can find out the appropriate flag settings by looking at AGRIS > PAT > Setup > Patronage refund setup > 2^nd screen. Look at the misc. name/address fields used to pay the refund. The heirs would be setup with the same codes on their name/address records.

Overall, the heirs must have their names added to AGRIS name/address if any future unrefunded activity or stock/equity payback is going to be issues. If everything is staying in the estate name id, then no name id’s (with their tax identification) are required.

3. Transfer remaining unpaid activity to the heirs.

If there is any unpaid accumulated patronage activity, transfer this to their heirs for possible patronage refund in the future.

This option will look at the patronage splits set up in Name/Address Use” Transfer One Patron at a Time” from the PAT > Patronage Activity > transfer Activity

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 25) 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 25: Transfer Activity > Single Patron Transfer

· 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 26).

Illustration 26: Select Activity to Transfer

· If the user chooses the Select All button they only have the ability to change the percentage (Illustration 27).

Illustration 27: Transfer Percent

· 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 28).

Illustration 28: Select Activity

· 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 29 and 30 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 29 - Split To Name ID’s

Illustration 30 - Split Percent's

4. Transfer Existing Stock/Equity to the heirs.

Determine if the heirs are going to receive a check for the estate stock/equity or if they are going to maintain ownership of the estate stock/equity as a continuing member of the co-op.
If yes to either option, transfer all or a percentage of stock, stock credits, or equity from the Estate name id to the heirs.

This will give the heirs part ownership in the co-op and if requested, they can close their account to receive a check for their stock/equity. Note that this all depends on the co-op by-laws.

If the estate is closing their account, leave stock/equity in the estate’s account for payout to the estate.

Note that you may still need heir information if they can receive a refund from unrefunded activity in the future.

Listed below are the steps to transfer the estate stock/equity to the heirs:

· Check system integration. AGRIS will create a zero-dollar voucher in the receiving name id. This manual voucher will have ledger codes for updating the ledger with the stock/equity/stock credit amount move. Because you have the option to move the Estate’s Stock to any other stock/equity, the voucher handles the ledger transfer of these amounts.
You may encounter a situation where an heir already has their maximum stock requirement and you cannot transfer the stock of the estate to them. In this case, you could transfer the stock to an equity code.

· Transfer one Patron at a time – See Illustration 53 below.

o Patron ID - Enter the ID of the patron who is the source of the transfer (that is, the estate account), or use the search function to locate the ID. Press enter or click OK.

o 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.

o 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.

Illustration 53 – this is all the stock/equity under BROWROBE account

o After the selection is complete click on the Continue button.

o Illustration 54 on the next page will appear.

o Select the stock/equity to transfer to. You can keep it as *No change to transfer like to like. Or you can select another stock credit to move it to. If an heir already has their required stock, you could transfer the estate stock to an equity, for example.

o Number of People Receiving Transfer - Enter the number of recipients (up to 48) among whom the stock/equity is going to be distributed.

o 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 54: Select Stock/Equity to Transfer & Number of People Receiving Transfer

o Percent – if you selected more than 1-person to transfer to, the prompt for percent appears. Enter the percent of the stock/equity being transferred to this recipient.

o 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:

o Previous Balance - Recipient's stock/equity before transfer.

o Total Stock/Equity - Sum of previous and transferred stock/equity.

o Next Certificate - If stock has been issued because 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.

o 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.

o 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.

o Remarks – The user has the option to enter remarks if they wish.

o Voucher/Control Number - If Patronage is integrated to Accounts Payable, and if stock has been issued because 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 55: Always use 2) Maintain Original Date

5. Payout Stock/Equity if the Heirs or Estate is closing their account.

Once you have the stock/equity in the correct patron account, the estate or the heir can cash-out their stock/equity if they are NOT going to be a member of the coop.
If the estate or heirs receive their stock back….they are no longer co-op members. Be sure to flag their name/address misc. fields so they are NOT included in the next refund. Look to the name/address > select name id> reporting codes. There will be MISC fields there that are used to identify who receives refunds. Note that this depends on the coop charter as to whether they will receive another patronage check based on the estate’s equity.

· If you are issuing checks to payback stock/equity, integration to ACP must be turned on.
Pat > setup > system integration > press OK past the name id type range defaults/
Verify that stock/equity payback is flagged to YES. This is the only way to be able to produce disbursements checks to your patrons.

System Integration: Verify it is set to YES

To payback stock or equity:

From the Toolbar, click PAT for Patronage.
From the Patronage menu, select Patronage Transactions, and then select Stock/Equity Payback.
In the Beginning and Ending Patron Name Id box, click Lookup or type * and press Enter, and then select the name id range you want to pay back stock or equity for.
In the Beginning and Ending Name Id Type box, click Lookup or type * and press Enter, and then select the name id type range you want to pay back stock or equity for.
There are 6 miscellaneous name/address fields that have a customized title for your dataset.
In the case of a payback, we are selecting just a single name id so you do not have to fill in a range filter for the misc. fields.

Name/address Filter Fields to Limit Payback, if needed.
In the Beginning and Ending Equity Source Code box, click Lookup or type * and press Enter, and then select the equity source code range you want to pay back.
If you are only paying back stock, then you may leave this field blank.
Key in the full range of equity owned by the estate or now heirs.
Click Next.
In the Use This Range? box, type Y.
Use this screen to enter up to 10-selects of your previous screen equity code.
Use this Range? Allows you to mark Y/N to each of the 10-selections without your only option being to blank out your data.
Beginning Birth Date/ Ending Birth Date - allows you to key in a range of birthdates so that only patrons over X-Years old are paid.
Key this in as YYYY-MM-DD. It will match the BIRTHDATE field in the name/address records.
Beginning/Ending Transaction Date - allows you to key in a range of transactions dates. This will let you select to only pay back 2000 equity, for example. You would be looking to have this date range match the transaction date range. (use the account balance inquiry to find equity date ranges)
Equity Payback Percent – 100%

Equity Year filters and Payback Rate
Click Next
Do you Want these to Be the New Default Parameters?
Select YES or No. It will store the data there, so it defaults in the next time you do Stock/Equity Payback.
They Payback transaction will create vouchers in ACP for disbursements to be entered on (if your system integration to AP is turned.)
Key in the Voucher Due Date.

Key Voucher Detail and Patronage Remarks
In the Transaction Date box, type the date of the transaction. This will be the date used by patronage transaction and the voucher date.
In the Percent Paid by Check, press Enter to accept the default of 100%. If you want to write off a portion of stock/equity and pay the remainder by check, you can enter a number less than 100; in this case, the write off portion of the payback will be posted to the Stock Adjustment account.
In the Minimum Check Amount box, type the least dollar amount a check can print for. Leave zero to payback 100%
Note that is a minimum check amount is NOT met, then nothing is paid back for this patron and his stock is left intact. There is no cash or equity adjustment for this patron. Their Stock/Equity stays in their Patron balance account,
In the Payback All Stock? boxes for each stock class, type Y to payback, or type N to continue without a payback.
In the Stock Credits? boxes each stock class, type Y to payback, or type N to continue without a payback.
Stock Credits are when a person received a refund and money was set aside to buy stock, but they don’t have enough yet to buy a share.
In the Remarks Section type any remarks (up to 70 characters per field) you want included on the Stock/Equity Payback Report in the five Remarks fields.
You may also view these remarks via Patron Account Balance Inquiry.
Voucher Description - key in the description you want to appear on the AP Voucher that is created. This description will appear on the check stub when the disbursement is issued.
Click OK to continue the process and create voucher (if you are integrated to Accounts Payable)
There is one more confirmation window box to verify you agree with your filter settings. Select YES to continue.