Objectives

Version 18.1 (January 2018) released a completely re-vamped Patronage per-unit-retains function. This function will give you a better way to update the per-unit-retains for the 1099 reporting and it will also allow imports to stop.

• Determining the Amount of the 1099 Per-Unit-Retain to distribute to each patron.

• Learn about all the small questions to be answered in regards to how you distribute per-unit-retains.

• Learn how to run the report that will auto update per-unit-retains.

• Learn how to create spreadsheets, if you still want to import instead of auto update.

• Learn how to make Corrections to the dollar amounts for each patron.

Per-Unit-Retains – what are they

The per-unit-retains is the amount that represents the Patron's farm products that were sold to a cooperative, which is the Coop's Grain Purchases & the Farmers grain sales. This amount, reported in Box 3 of the 1099-Patr, is fixed based on the grain settlements, regardless of the income/loss that the cooperative received. This becomes income to the farmer and they must report it as such. If the income on the Form 1099-Patr (per-unit-retains) does not match the income reported on a Schedule F of the individual's income tax return, the farmer would receive a notice from the IRS advising them that their income was understated and more tax is due.
So this process is all about reporting a Patrons Grain Sales to the IRS, if the sales were done via a Coop that the Patron is a member of.

Things to Know

• Name id must be marked YES or WITHHOLDING for ACCUMULATE PATRONAGE.  
  NAM > Name id Maintenance > Select Name > general information > Accumulate Patronage must equal Yes or Withholding.

• The new Per-unit-Retain reporting will allow you to update the per-unit-retain with three possible calculations: * Gross = Net Quantity times Contact Price* Net = Settlement Amount* Value of Grain = Gross adjusted by all "value discounts" such as Moisture, FM, Test Weight, Etc. but not by service charges such as Weighing and inspection fees, storage charges, etc.

• It is our understanding that gross dollars are to be reported for the activity in a given calendar year less non-value deduction such as storage, drying, trucking, check-off expenses, etc.  Please check with your auditor to verify.  But note that you will now have 3-options of what value to post so we can handle however your auditor recommends.

• The Section 199 Per-Unit-Retains are to be reported in Box 3 of the 1099-PATR form.

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• It is recommended that you create a folder in My Documents or on your desk top. Use this folder to store the reports that you will be creating. The reports are one-time reports so spool them to the spool, then save an electronic copy somewhere else.

• Settlement Split Name id: The per-unit-retain calculation is designed to print based on the settlement split name id. This is the person that received the check.

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• There is now a standard import report for importing source Allocations. AGRIS > Pat > Report manager > Advanced Reports > Per-Unit-Retain Allocation Export (AGEXPIMP.CSV>this will create the import file and allow you to tweak the values before importing them into the system.

Business Rules

The following business rules will be used to determine the per-unit retain allocation:
Each of the topics below refers to each split payment distribution of Purchase Settlements.  The settlement split Name ID is used to determine each party's share of the Grain Value toward their Per-Unit Retain allocation. 

Examples

The following examples are supplied to explain the different methods of settlement distribution.  Each of the examples will report the appropriate value of grain purchases, regardless of how each of the split Name IDs were "paid" (by check, credit memo, A/R invoice, etc).
These examples assume that the DM discount (Damage) is set up as a discount that does affect the value of the grain, but SC (Storage Charges) does not affect the value.

Accumulating Per-Unit-Retains

There are two ways to get to the Per-Unit-Retains Calculation.

1. Pat > Patronage Transactions > Source Allocation > 5) Per-Unit-Retain Allocations

2. PAT > Report Manager > Advanced Reports > Per-Unit-Retain Allocations Report

Both of these paths will get you to the same screen that allows you to accumulate the per-unit-retain source allocation transaction that will be saved in the patronage transactions.

• GREEN options - Limit the report or creation of per-unit-retains to a range of names, locations & commodities.

• GRAY options - Use the name id fields to limit the range of name id's that will be used to create the per-unit-retain transactions. Ideally, this will match how you payout your patronage accumulation but it could change under certain circumstances

• RED options - There are 6 Y/N questions for the different settlement distribution types. If you want to eliminate a type, you can exclude it by answering NO. Note that AP vouchers are considered the same as a grain settlement to a check, so they are always included

• YELLOW options - Delivery Sheet Detail Lines? – Yes will post all the detail that makes up the calculation.

         No will post a single line for each grain settlement

        New Page for Each Customer? -

         Yes will create a new page for each customer so that's easier to provide a copy of this report to your patron's. I would make the report print out like a statement, so that you could just mail the per-unit-retain detail to the                   customer as proof behind the allocation.

Notes on the Report Created

• RED Warning - If an allocation already exists for that customer and date range, you are warned on the report. It will still create an allocation transaction, so you can double or triple this amount up if you run and post the report over and over. But you do get a warning on the report. This warning occurs whether you are updating totals or not.

RETAIN

• Detail – All the settlements (with or without delivery sheet detail) are included on the report so that you may verify what is being allocated. Note that this detail is coming from the Grain package. This is not from accumulated patronage activity.

• Grand Totals – on the last page, grand totals of each calculation figure will be totaled for easy validation.

• If you answer NO to any of the grain settlement types, the grand totals amounts will state NA (not applicable) so you know what you flagged.

Per-Unit-Retain Allocation Remarks

Every allocation created for the customer will have a series of Remarks that give that provides the detail for what makes up the totals.
It's the grand total for each settlement type for that allocation.
This is provided for research purchases.
NOTE: if you answered NO to a certain settlement type, such as A/R Reductions, then the notes would say NA as in you didn't use this field to calculate.

Also note that this remarks can be edited via Account Balance Inquiry.

How to Correct if Incorrect

If you find that the per-unit-retain is wrong for an individual you can take the following steps to correct.

1. In Patronage, through Account Balance Inquiry select the Patron with the problem and display Transaction History.

2. Locate the transaction for the Source Allocation and make note of the transaction Number.

1. Reverse the transaction by going to Patronage Transactions and then selecting Reverse Transactions.

2. Go to AGRIS > PAT > Report Manager > Advanced Reports > Standard3. Per-Unit Retain Allocation, One Name id

1. Enter the name id and verify fiscal year date range.

2. At bottom, key in dollar amount.

3. Then select if it should POST (green highlight.)

Note: The report will create Remarks that identify that this is a manually keyed amount.

Standard Export report for Per-Unit-Retains

Before 18.1 (January 2018), you could create a grain settlement report that you could then massage into an import file to bring in the Per-Unit-Retain.
Now there is a standard export report that will create an import file using the logic that we have already covered above.
AGRIS > PAT > Report Manager > Advanced Reports > Standard > Per-Unit-Retain Allocation Export (AGEXPIMP.CSV)

• Columns A-N These are the columns that will be used for the import file.The ability to edit the column N will allow you to create a different amount than what was calculated.

• Columns O - End of import Fields. All information after this is to help you calculate column N manually

• Columns P-AZ Grain Settlement Detail & Name ID Detail

Steps to Import the Spreadsheet (file)

1. At the Main Menu of AGRIS go to Reports.

1. Then select Import Procedures

2. At the next screen select Comma Separated Import File. If you do not have this import procedure, one can be defined. If you need help, call Support at 800-366-2474.

1. At the next screen, enter the name of the file that you are wanting to import or you can search for it. Change the Output file name to RetainsReject leaving the EXT as CSV. Click Ok. The file will now import. If there are issues, call Support at the number above.

~ Document Written by Alisa Mueller