Paying Back Stock/Equity

Overview

Use this job aid to pay back or adjust patron stock, stock credits, and equity.

Situations that required Paying Back:

Coop has decided to return 2016 Equity to their patrons.
Patron has passed away and the estate is closing their patronage account with the coop.
Paying Back all equity if a patron reaches a certain age.
Buying back all the stock credits & mass retiring a stock class.

Verify before Beginning:

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.

Patronage System Integration

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.
Every business/coop will title these fields uniquely to fill their reporting needs so the titles are different in each dataset.
Usually, at least one or two of these fields are used for Patronage, such as Member/Non-member or Voter/Non-Voter or Pay Patronage/Only Accumulate.
Use these 6 filter options to limit who is paid back their stock/equity.
(note that these fields must be stored on the Transaction record to use as a filter. If they are not, use the compress activity function to only compress transactions. To find if flags are on transactions, create a user-defined Transaction Report to print these fields)
In the Beginning and Ending Misc Fields #1-#6 box click Lookup or type * and press Enter, and then select the value range you want to use to filter the stock/equity transactions.
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.
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.
You would be looking to have this date range match the transaction date range.
Equity Payback Percent - Key in the percentage you are paying back.
WARNING: if a coop board votes to pay back 50% of Year 2000-2010 equity, the question is, “Are you wanting to lower each years equity by 50% or are you wanting to pay back all of year 2000, then year 2001, then year 2002, etc until you reach 50% of the total of 2000-2010 total equity?” If you key 50% for Dates 010100 to 010120, each transaction record is lowered by 50%. This leaves 2000 to 2010 equity unpaid but in a smaller amount. If you key date range 010100 to 123100 for 100%, then for date range 010101 to 123101 for 100%, then Ect until your reach your total of 50% of 10-years of equity, this will payback the older equity first. leaving the more recent equity.
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. (We recommend Yes so next time you can see what you did last time.)
The Payback transaction will create vouchers in ACP for disbursement. (if your system integration to AP is turned.)
Key in the Voucher Due Date.
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.
Note that if 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 for 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. (Customer will not see this)
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.

Learn more about Stock/Equity Payback: