1. AgVantage Software 2011 User Conference
Patronage
E-Agvantage
C.D.D.
Karen Tidd
Good morning and welcome to the patronage distributions and govt reporting class!
3/25/2017

2. Topics of Discussion Patronage Check Distribution New Features
1099’s – Purpims & DPAD
E-Agvantage
C.D.D.
3/25/2017

3. Patronage Check Distribution
Current year distributions
Terms & definitions
File setup
Pull & balance activity
Maintenance
Transfers
Volume processing
Distributions / dividends
Our session will cover the steps in the patronage distribution along with the files needed to be set up and words used in the patronage process.
3/25/2017

4. Distributions Types Terms and Definitions
Qualified – patron pays tax on 100% of the dividend even though only 20% may be paid in cash
Non-qualified – patron pays tax on the cash portion now and then when the deferred portion is paid, the tax is paid then. The coop gets the tax credit then. The coop pays tax on the non-cash portion of the dividends
Qualified and Non-Qualified Distributions determines who pays the tax.
Qualified – Customer pays the tax and not the cooperative.
1099 issued on the total dividend, cash and equity.
Non-Qualified – Coop pays the tax on the cash dividends now
1099 issued on cash portion now.
1099 issued on equity portion when equity is redeemed.
Usually issued to Producers and Business types.
3/25/2017

5. Terms and Definitions Member Status Code Member Status Code
P – Producer
Farmer, Voting
Receives patronage
Reports as taxable income
Blank – Non-Member
Receives no patronage
Member Status Code
B - Business
Non-Farmer, Non-Voting,
Builder/Contractor
Receives Patronage
Reports as taxable income
N – Non-Producer
Non-Farmer, Non-Voting
Determined by user if it’s reported on their income tax (Similar to a rebate or refund)
The member status code is set in the customer master file.
If it is blank, then they receive no patronage. The others will receive patronage.
B is our newest code which is for the Builder/contractors.
N is the non-producer which is basically the same as the Business code
However they do not need to report the patronage as taxable income.
P is the producer/farmer which reports the patronage as taxable income.
3/25/2017

6. Terms and Definitions Business Type Process
Allows qualified and non-qualified dividends in the
same patronage distribution.
Allows different cash percentages for different member types.
Set up in constant file
The Business Type process is setup for the cooperative so they can issue a Qualified Distribution to a Non-Producer and a Non-Qualified Distribution to a Producer in the same distribution and thus lower the amount of their taxes.
This is controlled in the constant file.
So, lets look at the files that need to be setup before a patronage distribution can be run.
3/25/2017

7. File Setup Information 4. Add/Change Patron Information
Patron Information – U9MEN9-4
Member status code
B, N, P, or blank
Create Query
Social security number
Report for missing SS #’s U9MEN8-3
Blank – SS No.
F – TIN No.
Backup withholding
B in backup withholding field
State code
Pay out Age?
IRS Name
Verify the following fields in the customer files that are important to the patronage check run.
Check the member status code by running a query using the u4cstmr file.
The report for missing ss no.s now only prints for members!
Use B for any extra backup withholding that is needed for a customer.
If they have reached the payout age and should receive all of the patronage dividends in cash, then answer Y here. A query can be ran to check these.
3/25/2017

8. File Setup Information 5. Add/Change Constant Info
Federal Tax Withholding %
2011 – 28%
Check code
Write checks to inactive customers
Earn common stock
These fields will be used when writing patronage checks.
Be sure they are set properly!
3/25/2017

9. File Setup Information 5. Add/Change Constant Info
Pay 100% on aged accounts
Show prior yrs equity and equity balance on check
Minimum check options
Business Type Process
Categorize Credit
Card Sales
If an aged account should received 100% of the pt dividend then make sure it is marked correctly here.
The check stub information can show prior years equity and their balance on the ck.
Mark the minimum ck option correctly. You can drop the dividends earned under the min patronage amount OR pay out the entire dividend if it meets the minimum check amount.
If the business type process is not selected then it will distribute the patronage to the members as either Qualified or Non-Qualified depending on what was entered.
3/25/2017

10. File Setup Information 5. Add/Change Constant Info
Check Printer
G/L Numbers
Make sure the check printer is correct here.
3/25/2017

11. File Setup Information 5. Add/Change Constant Info
Setup Pat
Checks to
interface with
G/L
3/25/2017

12. File Setup Information 11. Check Print Options
8.5 X 7
8.5 X 11
Laser Overlay
Make sure the type of check is setup here for the checks you are using.
Laser overlays can print signatures and your logo on the checks which is nice!
The laser overlay is also used for the 1099 substitute check form.
3/25/2017

13. File Setup Information 7. Add/Change Heading & G/L# Info 1
File Setup Information 7. Add/Change Heading & G/L# Info 1. Add/Change Patronage Category Headings
Heading & G/L Info
20 Category Headings
13 categories if using
8.5 X 7 Checks
Different categories are used if you are needing to pay different percentages on products.
Fertz may receive a different % than grain for example.
These categories are tied to the g/l nos.
Only set up the g/l nos. that will receive patronage.
3/25/2017

14. Setup Categories based on % paying for departments.
File Setup Information 7. Add/Change Heading & G/L# Info 1. Add/Change Patronage Category Headings
Setup Categories based on % paying for departments.
Separate category for Credit Card Sales
3/25/2017

15. File Setup Information 7. Add/Change Heading & G/L# Info
Credit Account?
0 = All loc
Credit Card Sales
U4MEN9-13
Payment Types
Make sure the credit account question is correct when the G/L nos are set up in the next option.
Sales are normally credits so therefore the answer would be Y.
3/25/2017

16. File Setup Information 8. Add/Change Patronage Transfers
Set up transfer activity
Transfer between business/family
More than 1 account
Use this option to setup transfer of patronage sales to another account for ex if a customer has more than one account so he will receive only 1 patronage check. Also if the patronage will be distributed between family members.
3/25/2017

17. File Setup Information 9. Add/Change Monthly Gas Tax Rates
Set up items
& rates
Set up item codes such as fuels that have gas taxes included in the price so it will deduct them from the total sales that are eligible to receive patronage.
3/25/2017

18. File Setup Information 10. Add/Change Union Dues Information
Deduction for Farmers Union dues
Your state may participate require farmers to pay Union dues. These can be deducted from their patronage checks.
3/25/2017

19. Pull & Balance Activity
Pull Activity Files
Monthly verses Yearly
Monthly
Small amount of time each month
Monthly issues are fresh
Yearly
Only has to be done once
May take more time to balance
Now you are ready to pull in the activity from AR & Grain packages.
This can be done monthly or all at once for the whole year.
There are pros and cons both ways.
Anyone have any suggestions on these?
3/25/2017

20. Pull Activity Current Year Distributions 3
Pull Activity Current Year Distributions 3. Pull A/R Sales Into Patronage Activity File
Pull A/R Sales
Calendar month / year
Remove gas taxes
AR uses the calendar month to pull the information from the AR files.
So if your fiscal yrs starts in June and you are paying pt for the business year 2007 here is how you would enter the information.
The option will give a report of the items that were entered as N to receive patronage during AR invoicing.
3/25/2017

21. Pull Activity Current Year Distributions 4
Pull Activity Current Year Distributions 4. Pull Grain Purchases into Patronage Activity File
Pull Grain
Purchases
Periods / fiscal Year
If you need to pull grain information for the same time period, here is how you would enter that. June is 01, etc.
3/25/2017

22. Balance Activity Print Activity Report & Balance – U9MEN1-9 A/R –
Query A/R Trans.
Monthly Sales Report
G/L or Financial Statements
Grain –
Issues
Merged month multiple times
Missing months
Missing G/L Accounts
Credit Account question set up wrong
The activity report can be used to balance the AR & Grain data from various different sources.
AR –
query the u4trnd file
Look at monthly sales report
Get figures from the F/S
Grain –
G/L accounts or F/S
Issues to be aware of:
A/R & Grain pulls will not stop you if run more than once.
May be missing G/L nos. that need to be set up. Additions during the yr
Credit account question is N and s/b Y or vice versa.
3/25/2017

23. Maintenance 6. Remove Selected Activity
Remove Activity
Select months or whole year
Maintenance can be done in several different ways.
This is used if one of the pull options was ran twice
Use beg month as 01 and end as 12 if needing to clear the whole file.
01-January if removing just one month.
3/25/2017

24. Maintenance 7. Add/Change Activity
By year
This option changes the data in the file and shows totals by g/l no for each customer. No audit trail is printed from this option.
Could potentially lose the changes made here if the activity needed to be re-pulled.
3/25/2017

25. Maintenance 7. Add/Change Activity
Run Transfers again!
After making any changes, this is a reminder to rerun the transfers.
3/25/2017

26. Maintenance 2. Add/Change & Print Miscellaneous Sales
F6 Create Transactions
F7 Prints Report for Audit Trail
Another way to maintenance the activity is to enter the additions or corrections using the Misc Sales Option. This has a nice report for an audit trail of the changes.
It will keep all of the data for all years in here even after it is pulled into the patronage files.
3/25/2017

27. Maintenance Current Year Distributions 2
Maintenance Current Year Distributions 2. Add/Change & Print Misc Sales F7 – Print Report
DATE- 4/21/ MISCELLANEOUS SALES TRANSACTIONS PAGE- 1
TIME- 12:01:05 STARTING CALENDAR ENDING CALENDAR U9CARPT
CUSTOMER
NUMBER NAME G/L NUMBER LOC YEAR MO QUANTITY AMOUNT
112 TEST FILE LOOKUP NAME
G/L TOTAL
112 TEST FILE LOOKUP NAME
G/L TOTAL
112 TEST FILE LOOKUP NAME
112 TEST FILE LOOKUP NAME
G/L TOTAL
CUSTOMER TOTAL
GRAND TOTAL
DATE- 4/21/ MISCELLANEOUS SALES TRANSACTIONS RECAP BY G/L NUMBER PAGE- 2
TIME- 12:01:05 STARTING CALENDAR ENDING CALENDAR U9CARPT
G/L NUMBER LOC QUANTITY AMOUNT
TOTAL
F7 Prints a detailed report with totals by g/l at the bottom for balancing purposes.
3/25/2017

28. Maintenance Current Year Distributions 5
Maintenance Current Year Distributions 5. Pull Miscellaneous Sales into Patronage Activity File
Calendar Month & Year
Be sure to pull the changes into the activity file by calendar year.
3/25/2017

29. Transfers Transfers between customers/business/family
Can rerun as many times as needed
Print Final Activity Report
U9MEN1-9
The transfers can be run as many times as needed.
The final activity report should reflect the changes between the customer accounts.
3/25/2017

30. Volume Processing Equity Credits Cash Refund 3/25/2017
This option is primarily used when the patronage refund is based on the amount of equity a customer owns compared to the total business of the cooperative. For example, if a customer has been farming for a long period of time, then they would have a large amount of equity in the cooperative and should therefore receive a larger cash refund than a farmer that does not have as much equity. If the farmer doesn’t have a lot of equity in the cooperative, he would receive a smaller cash payment with a larger amount going into equity.
3/25/2017

31. Volume Processing 10. Process Volume of Activity Menu
Merge the Current Year
Print Report
Maintain Records
Option 2 allows you to merge the current year sales into the volume file for processing of the pt dividend after the pull and balancing are completed.
A report can be printed showing all the years for a customer and any maintenance can be done with option 1.
3/25/2017

32. % of needed equity Cash refund % Volume yrs-5 Total Volume
Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity
% of needed equity
Cash refund %
Volume yrs-5
Total Volume
Projected Equity
If you are using volume processing, this screen will be displayed.
If you want to skip this screen, enter the volume yrs as 3 and totals as 100.
In this example customers owning 100% of needed equity will receive a 45% cash refund and customers owning 50 to 99% will receive a 40% cash refund. Customer with less than 50% will receive 35% in cash.
This is based on a 5 yr period with the total volume from the volume report as 1,720,000 and the projected equity as 4,500,000
It figures the amount of cash dividend each customer will receive based on their volume and equity.
If you have not entered anything into the volume file, this screen will not be displayed.
If you choose to use the volume processing just to get a report of the activity for each customer but not really paying pt according to the volume, then enter 3 for the yrs and 100 for the dollar amounts.
3/25/2017

33. Separate rates for member types
Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity Business Process - Y
10% = 10.
$.05 = 5.
Business Process
Separate rates for member types
This is the screen that will be displayed when using the business type process and it offers different percentages for types of members.
In this example the non-producer will be issued a qualified dividend with 20% issued in cash.
The others are issued a Non-Qualified dividend.
Coops don’t have to pay the tax on the Qualified dividend issued to the Non-Producer.
3/25/2017

34. Non-Business Type Process
Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity Business Process - N
Non-Business Type Process
This is displayed when the Business Type Process is N in the constant file. There is no separation between member types.
3/25/2017

35. Distributions/Dividends 16. Process Patronage Dividend Checks Menu
Enter Ck Date and Business Year
Ref No. = Tally No.
Updates Files
Prints Check Register
Prints Merge Sheet
Merges to G/L
Can rerun cks as many times as needed.
You can enter the date to be printed on the cks and it prompts for the business year.
Reference no on the ck is the same as the tally no referred to here in option 2.
A Check register prints when the update process is complete.
It updates check reconciliation, equity and government tax files with option 3.
Now the patronage distribution process is complete!
3/25/2017

36. New Features Checks interfaced with G/L Separate Credit Card Sales
Track Payouts & Info
3/25/2017

37. New Features – Checks interfaced to G/L
Patronage Dividend
Redemption
Estates
Preferred Stock Dividends
Accumulative Preferred Stock Dividends
Debenture Bond Interest
3/25/2017

38. New Features – Checks interfaced to G/L Setup U9MEN9-6
New Features – Checks interfaced to G/L Setup U9MEN9-6. Add/Change Division Information
(A,C,I,D) I DIVISION INFORMATION **U9DVM0** Division Number: 001 Div Short Name: MAIN Div Long Name: MAIN DIVISION TESTING OF1 Div Loc Q G/L: Div Loc NQ G/L: Div REG Q G/L: Div REG NQ G/L:
Equity Redemption
Checks
3/25/2017

39. New Features – Checks interfaced to G/L Setup U9MEN9-5
New Features – Checks interfaced to G/L Setup U9MEN9-5. Add/Change Constant Info
CONSTANTS FILE MAINTENANCE **U9C9M040** Check Writing Printer ID KARENP61H General Reserve G/L # Cash in Bank G/L # Qualified Retained Patronage Dividends Local G/L # Qualified Retained Patronage Dividends Regional G/L # Nonqualified Retained Patronage Dividends Local G/L # Nonqualified Retained Patronage Dividends Regional G/L #
3/25/2017

40. New Features – Checks interfaced to G/L Setup U9MEN9-5
New Features – Checks interfaced to G/L Setup U9MEN9-5. Add/Change Constant Info
CONSTANTS FILE MAINTENANCE **U9C9M045** G/L Merge Y/N Y Federal Withholding G/L # Union Dues G/L # Location for Patronage G/L Accounts Location for Cash G/L Account
3/25/2017

41. New Features – Checks interfaced to G/L Setup U9MEN9-5
New Features – Checks interfaced to G/L Setup U9MEN9-5. Add/Change Constant Info
CONSTANTS FILE MAINTENANCE **U9C9M050** C1 Common Stock G/L # C2 Common Stock G/L # C3 Common Stock G/L # C4 Common Stock G/L # C5 Common Stock G/L # C6 Common Stock G/L # C7 Common Stock G/L # Debenture Bond G/L # Debenture Bond Interest Payable G/L
3/25/2017

42. New Features – Checks interfaced to G/L Setup U9MEN9-5
New Features – Checks interfaced to G/L Setup U9MEN9-5. Add/Change Constant Info
CONSTANTS FILE MAINTENANCE **U9C9M060** PREFERRED STOCK G/L NUMBERS: P1 Stock G/L # P1 Dividends Payable G/L # P2 Stock G/L # P2 Dividends Payable G/L # P3 Stock G/L # P3 Dividends Payable G/L # P4 Stock G/L # P4 Dividends Payable G/L # P5 Stock G/L # P5 Dividends Payable G/L # P6 Stock G/L # P6 Dividends Payable G/L # P7 Stock G/L # P7 Dividends Payable G/L #
3/25/2017

43. New Features – Checks interfaced to G/L Merge Screen
U2GLG0 Merge to G/L G/L Merge Month G/L Fiscal Year G/L Merge Date /18/11
3/25/2017

44. New Features – Separate Credit Card Sales Setup U9MEN9-5
New Features – Separate Credit Card Sales Setup U9MEN9-5. Add/Change Constant Info
3/25/2017

45. New Features – Separate Credit Card Sales AR – 9
New Features – Separate Credit Card Sales AR – 9. File Setup Information 13. Payment Types
U4PYM0 PAYMENT TYPE MASTER FILE (A,C,I,D) I LOC 1 AgVantage Software Payment type C Description CREDIT CARD General Ledger Number Location Number Open cash drawer N Do not allow discounts . .
3/25/2017

46. New Features – Separate Credit Card Sales 7
New Features – Separate Credit Card Sales 7. Add/Change Heading & G/L# Info 1. Add/Change Patronage Category Headings
(A,C,I,D) I PATRONAGE CATEGORY CONTROL FILE Category No. 07 Category Description: CREDIT CARDS Report Heading/1: CREDIT Report Heading/2: CARDS Figure Patronage On Qty?(Y/N) N If Patronage Figured On Qty Enter Qty Descriptions: Qty Short Description: Qty Long Description:
3/25/2017

47. New Features – Separate Credit Card Sales 7
New Features – Separate Credit Card Sales 7. Add/Change Heading & G/L# Info 2. Add/Change Patronage G/L Numbers
(A,C,I,D) C PATRONAGE G/L # CONTROL FILE Division: 001 MAIN DIVISION TESTING OF1 GL Number: Location: = ALL LOCATIONS Category Number: 07 CREDIT CARDS Category Calculated on DOLLARS Credit Account (Y/N)? Y
3/25/2017

48. New Features – Separate Credit Card Sales 1
New Features – Separate Credit Card Sales 1. Current Year Distributions 9. Print - Activity Report
3/25/2017

49. New Features – Track Payouts & Info
1. Equity Deletions - U9MEN Estate Payouts - U9MEN3-7 a. Debenture Bonds b. Common Stock c. Preferred Stock 3. Debenture Bond Interest U9MEN6-4
V65 & V7
3/25/2017

50. 1099’s Purpims & DPAD Purpims - Per Unit Retains Paid In Money
Allows grain payments to members to be used in computing the Section 199 deduction for the cooperative.
Tax benefit to the cooperative!
3/25/2017

51. 1099’s - Purpims Based on calendar year not fiscal year
Recorded in Box 3 of 1099-PATR
Members only
Calculates from grain checks
Gross less the following:
Discounts (TW, FM, Damage, etc )
Does not deduct drying, storage, hauling, checkoff
Grain Checks
Regular Grain Checks – at settlement time
Deferred Payments – when check is written
Advances – when check is written
3/25/2017

52. 1099’s – Purpims u9men4-2. Update 1099-PATR with Grain Payments
U9MEN4 Government/Patron Reporting Menu Select one of the following: File Maintenance 1. Add/Change PATR/DIV/INT Tax Information 2. Update 1099-PATR with Grain Payments 3. Print 1099 PATR/DIV/INT Tax Report 1099 Letters to Patrons 4. Add/Change 1099-PATR Letter 5. Print - Combined 1099-PATR, 1099-DIV & 1099-INT Letter 6. Print PATR Substitute Letter or Forms 7. Print DIV Substitute Letter or Forms 8. Print INT Substitute Letter or Forms 1099 Reporting to Government 10. Create PATR Govt File
3/25/2017

53. 1099’s – Purpims Reporting Queries available: U9GRG0AM1 U9GRG0AM2
Report of Grain Checks
U9GRG0AM2
Report of Deferred Payments
3/25/2017

54. 1099’s – Purpims Reporting - u9grg0am1
3/25/2017

55. 1099’s – Purpims Reporting - Patrons U5MNEY-2
1099’s – Purpims Reporting - Patrons U5MNEY-2. Purchases Year-To-Date Report Screen
Report Customer's Annual Purchases Select One of the following: 1. Purchases Year-To-Date 2. Purchases Year-To-Date with 1099 payment amount Selection:
3/25/2017

56. 1099’s – Purpims Reporting - Patrons U5MNEY-2
1099’s – Purpims Reporting - Patrons U5MNEY-2. Purchases Year-To-Date Report Screen
U5EY Customer's Annual Purchases With 1099 Payment Amount
AgVantage Software, V7
Year to report ___
Separate page for each customer?(Y/N) Y
Select Customers to print, or leave all zeros for all customers.
______ ______ ______ ______ ______ ______
3/25/2017

57. 1099’s – Purpims Reporting - Patrons U5MNEY-2
1099’s – Purpims Reporting - Patrons U5MNEY-2. Purchases Year-To-Date Report Screen
3/25/2017

58. 1099’s – DPAD
Tax deduction for cooperative related to products related to crop production in the USA
Cooperative has option to pass on all, part or none of the tax savings to producers only
Reported in Box 6 of the 1099-PATR
3/25/2017

59. 9% of the net profit for years 2010 & after.
1099’s – DPAD
9% of the net profit for years 2010 & after.
Dollar amt distributed to patrons could be based on 3 different figures
Amount of 1099
Grain Dollars or Bushels used in patronage calculation
Amount of Supply sales
3/25/2017

60. Written notification to producers
1099’s – DPAD
Written notification to producers
Total amount of allocation
Producers allocation
Download file into Word Document
3/25/2017

61. E-AgVantage Access Patron Information
Products
eAgVantage
Test Drive
3/25/2017

62. C.D.D. Design Patron Lookup Screen
U9ETM1 PATRON INQUIRY 05/31/11 00:00:00 Patron Farmer Jill L Select = Total 1 Equity 173, __ Common Stock __ Preferred Stock 3, __ Debenture Bonds 150, TOTAL 327, F12-Cancel
3/25/2017

63. C.D.D. Design Patron Lookup Screen
U9ETM161 PATRON INQUIRY mm/dd/yy Equity 00:00:00 Patron Number 700 Farmer Jill L Member Status __ Total Local 10, Total Common Stock Total Regional Total Preferred Stock Total Equity 11, Total Debenture Bonds 1 – Current 2 – History Division Local Regional Common Stock Union Dues _1 Q 1 MAIN DIVISION __ N 1 MAIN DIVISION __ Q 2 BROWNFIELD DIVISION __ N 2 BROWNFIELD DIVISION F3 – Exit F4 – Prompt F 12 – Cancel F13 – Customer Info
3/25/2017

64. C.D.D. Design Patron Lookup Screen
U9ETM161 PATRON INQUIRY mm/dd/yy Current Equity 00:00:00 Division 1 Main Division Patron Number 700 Farmer Jill L Member Status __ Div 1 Total Local 9, Total Common Stock Div 1 Total Regional Total Preferred Stock Div 1 Total Equity 10, Total Debenture Bonds Year Q/N Local Regional Common Stock Union Dues 2009 Q 5, N Q 2, F3 – Exit F4 – Prompt F12 – Cancel F13 – Customer Info
3/25/2017

65. C.D.D. Design Patron Lookup Screen
U9ETM161 PATRON INQUIRY mm/dd/yy Equity 00:00:00 Patron Number 700 Farmer Jill L Member Status __ Total Local 10, Total Common Stock Total Regional Total Preferred Stock Total Equity 11, Total Debenture Bonds 1 – Current 2 – History Division Local Regional Common Stock Union Dues _2 Q 1 MAIN DIVISION __ N 1 MAIN DIVISION __ Q 2 BROWNFIELD DIVISION __ N 2 BROWNFIELD DIVISION F3 – Exit F4 – Prompt F 12 – Cancel F13 – Customer Info
3/25/2017

66. C.D.D. Design Patron Lookup Screen
Pgm Name PATRON INQUIRY mm/dd/yy Equity History 00:00:00 Patron Number 700 Farmer Jill L Type Year Q/N Trans Check Check Local Regional Fed. Union Date No. Amount Amount Amount Tax Dues Estate 2001 Q 01/02/ Dividend 2001 Q 12/31/ Add Equity 1990 Q 12/01/ Delete Equity 1990 Q 12/01/ Change Equity 1990 Q 12/01/ Change Equity 1990 Q 12/01/ Comment Line - Equity Correction Dividend 1980 Q 10/02/ F3 – Exit F4 – Prompt F12– Cancel F13 – Customer Info F17 – Comment lines
3/25/2017