1. AgVantage Software 2011 User Conference Patronage E-Agvantage C.D.D. Karen Tidd 9/4/2015 1

2. Topics of Discussion Patronage Check Distribution New Features 1099’s – Purpims & DPAD E-Agvantage C.D.D. 9/4/2015 2

3. Patronage Check Distribution Current year distributions Terms & definitions File setup Pull & balance activity Maintenance Transfers Volume processing Distributions / dividends 9/4/2015 3

4. Terms and Definitions Distributions Types 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 9/4/2015 4

5. Terms and Definitions Member Status Code B - Business Non-Farmer, Non-Voting, Builder/Contractor Receives Patronage Reports as taxable income N – Non-Producer Non-Farmer, Non-Voting Receives Patronage Determined by user if it’s reported on their income tax (Similar to a rebate or refund) Member Status Code P– Producer Farmer, Voting Receives patronage Reports as taxable income Blank – Non-Member Receives no patronage 9/4/2015 5

6. 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

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 9/4/2015 7

8. File Setup Information 5. Add/Change Constant Info Federal Tax Withholding % 2011 – 28% Check code Write checks to inactive customers Earn common stock 9/4/2015 8

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 9/4/2015 9

10. File Setup Information 5. Add/Change Constant Info Check Printer G/L Numbers 9/4/2015 10

11. File Setup Information 5. Add/Change Constant Info Setup Pat Checks to interface with G/L 9/4/2015 11

12. 9/4/2015 12 File Setup Information 11. Check Print Options Check Print Options 8.5 X 7 8.5 X 11 Laser Overlay

13. 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 9/4/2015 13

14. 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 9/4/2015 14

15. File Setup Information 7. Add/Change Heading & G/L# Info 9/4/2015 15 G/L Info Credit Account? 0 = All loc Credit Card Sales U4MEN9-13 Payment Types

16. File Setup Information 8. Add/Change Patronage Transfers Set up transfer activity Transfer between business/family More than 1 account 9/4/2015 16

17. File Setup Information 9. Add/Change Monthly Gas Tax Rates Gas Tax Rates Set up items & rates 9/4/2015 17

18. File Setup Information 10. Add/Change Union Dues Information Union Dues Deduction for Farmers Union dues 9/4/2015 18

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 9/4/2015 19

20. 9/4/2015 20 Pull Activity Current Year Distributions 3. Pull A/R Sales Into Patronage Activity File Pull A/R Sales Calendar month / year Remove gas taxes

21. 9/4/2015 21 Pull Activity Current Year Distributions 4. Pull Grain Purchases into Patronage Activity File Pull Grain Purchases Periods / fiscal Year

22. Balance Activity Print Activity Report & Balance – U9MEN1-9 A/R – Query A/R Trans. Monthly Sales Report G/L or Financial Statements Grain – G/L or Financial Statements Issues Merged month multiple times Missing months Missing G/L Accounts Credit Account question set up wrong 9/4/2015 22

23. Maintenance 6. Remove Selected Activity Remove Activity Select months or whole year 9/4/2015 23

24. Maintenance 7. Add/Change Activity Add/Change Activity By year 9/4/2015 24

25. 9/4/2015 25 Maintenance 7. Add/Change Activity Run Transfers again!

26. 9/4/2015 26 Maintenance 2. Add/Change & Print Miscellaneous Sales Miscellaneous Sales F6 Create Transactions F7 Prints Report for Audit Trail

27. 9/4/2015 27 Maintenance Current Year Distributions 2. Add/Change & Print Misc Sales F7 – Print Report DATE- 4/21/10 MISCELLANEOUS SALES TRANSACTIONS PAGE- 1 TIME- 12:01:05 STARTING CALENDAR- 01 2010 ENDING CALENDAR- 06 2010 U9CARPT CUSTOMER NUMBER NAME G/L NUMBER LOC YEAR MO QUANTITY AMOUNT 112 TEST FILE LOOKUP NAME 12 401220 1 2010 04 100.0000 525.00 G/L TOTAL 100.0000 525.00 112 TEST FILE LOOKUP NAME 12 403010 1 2010 03.0000 200.00 G/L TOTAL.0000 200.00 112 TEST FILE LOOKUP NAME 12 501010 1 2010 01 300.0000 100.00 112 TEST FILE LOOKUP NAME 12 501010 1 2010 06.0000 100.00 G/L TOTAL 300.0000 200.00 CUSTOMER TOTAL 400.0000 925.00 GRAND TOTAL 400.0000 925.00 DATE- 4/21/09 MISCELLANEOUS SALES TRANSACTIONS RECAP BY G/L NUMBER PAGE- 2 TIME- 12:01:05 STARTING CALENDAR- 01 2009 ENDING CALENDAR- 06 2009 U9CARPT G/L NUMBER LOC QUANTITY AMOUNT 401220 1 100.0000 525.00 403010 1.0000 200.00 501010 1 300.0000 200.00 TOTAL 400.0000 925.00

28. 9/4/2015 28 Maintenance Current Year Distributions 5. Pull Miscellaneous Sales into Patronage Activity File Calendar Month & Year

29. 9/4/2015 29 Transfers Transfers between customers/business/family Can rerun as many times as needed Print Final Activity Report U9MEN1-9

30. Volume Processing Equity Credits Cash Refund 9/4/2015 30

31. Volume Processing 10. Process Volume of Activity Menu 9/4/2015 31 Merge the Current Year Print Report Maintain Records

32. Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity 9/4/2015 32 % of needed equity Cash refund % Volume yrs-5 Total Volume Projected Equity

33. Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity Business Process - Y 9/4/2015 33 10% = 10. $.05 = 5. Business Process Separate rates for member types

34. Distributions/Dividends 13. Calculate & Print Patronage Dividend Report from Activity Business Process - N Non-Business Type Process 9/4/2015 34

35. Distributions/Dividends 16. Process Patronage Dividend Checks Menu 9/4/2015 35 Enter Ck Date and Business Year Ref No. = Tally No. Updates Files Prints Check Register Prints Merge Sheet Merges to G/L

36. New Features Checks interfaced with G/L Separate Credit Card Sales Track Payouts & Info 9/4/2015 36

37. New Features – Checks interfaced to G/L Patronage Dividend Redemption Estates Preferred Stock Dividends Accumulative Preferred Stock Dividends Debenture Bond Interest 9/4/2015 37

38. 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: 300210000 Div Loc NQ G/L: 300215000 Div REG Q G/L: 300220000 Div REG NQ G/L: 300225000 9/4/2015 38 Equity Redemption Checks

39. 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 #........................................ 300300000 Cash in Bank G/L #........................................... 100002000 Qualified Retained Patronage Dividends Local G/L #........... 300160000 Qualified Retained Patronage Dividends Regional G/L #........ 300220000 Nonqualified Retained Patronage Dividends Local G/L #........ 300150000 Nonqualified Retained Patronage Dividends Regional G/L #..... 300225000 9/4/2015 39

40. 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 #.................................... 200300000 Union Dues G/L #............................................ 200320000 Location for Patronage G/L Accounts.......................... 1 Location for Cash G/L Account................................ 1 9/4/2015 40

41. New Features – Checks interfaced to G/L Setup U9MEN9-5. Add/Change Constant Info CONSTANTS FILE MAINTENANCE **U9C9M050** C1 Common Stock G/L #................. 300150000 C2 Common Stock G/L #................. 300150000 C3 Common Stock G/L #................. 300150000 C4 Common Stock G/L #................. 300150000 C5 Common Stock G/L #................. 300150000 C6 Common Stock G/L #................. 300150000 C7 Common Stock G/L #................. 300150000 Debenture Bond G/L #.................. 200100000 Debenture Bond Interest Payable G/L... 200560000 9/4/2015 41

42. 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 # 300140000 P1 Dividends Payable G/L # 604620000 P2 Stock G/L # 300140000 P2 Dividends Payable G/L # 604620000 P3 Stock G/L # 300140000 P3 Dividends Payable G/L # 604620000 P4 Stock G/L # 300140000 P4 Dividends Payable G/L # 604620000 P5 Stock G/L # 300140000 P5 Dividends Payable G/L # 604620000 P6 Stock G/L # 300140000 P6 Dividends Payable G/L # 604620000 P7 Stock G/L # 300140000 P7 Dividends Payable G/L # 604620000 9/4/2015 42

43. New Features – Checks interfaced to G/L Merge Screen U2GLG0 Merge to G/L G/L Merge Month... 05 G/L Fiscal Year... 11 G/L Merge Date.... 5/18/11 9/4/2015 43

44. New Features – Separate Credit Card Sales Setup U9MEN9-5. Add/Change Constant Info 9/4/2015 44

45. 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... 603220000 Location Number...... Open cash drawer...... N Do not allow discounts.. 9/4/2015 45

46. 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: 9/4/2015 46

47. 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: 603220000 Location: 000 0 = ALL LOCATIONS Category Number: 07 CREDIT CARDS Category Calculated on DOLLARS Credit Account (Y/N)? Y 9/4/2015 47

48. New Features – Separate Credit Card Sales 1. Current Year Distributions 9. Print - Activity Report 9/4/2015 48

49. New Features – Track Payouts & Info 1. Equity Deletions - U9MEN9-1 2. Estate Payouts - U9MEN3-7 a. Debenture Bonds b. Common Stock c. Preferred Stock 3. Debenture Bond Interest U9MEN6-4 9/4/2015 49 V65 & V7

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! 9/4/2015 50

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 9/4/2015 51

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 - 1099-PATR Substitute Letter or Forms 7. Print - 1099-DIV Substitute Letter or Forms 8. Print - 1099-INT Substitute Letter or Forms 1099 Reporting to Government 10. Create - 1099-PATR Govt File 9/4/2015 52

53. 1099’s – Purpims Reporting Queries available: U9GRG0AM1 Report of Grain Checks U9GRG0AM2 Report of Deferred Payments 9/4/2015 53

54. 1099’s – Purpims Reporting - u9grg0am1 9/4/2015 54

55. 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: 9/4/2015 55

56. 1099’s – Purpims Reporting - Patrons U5MNEY-2. Purchases Year-To-Date Report Screen U5EY560 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. ______ ______ ______ ______ ______ ______ 9/4/2015 56

57. 1099’s – Purpims Reporting - Patrons U5MNEY-2. Purchases Year-To-Date Report Screen 9/4/2015 57

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 9/4/2015 58

59. 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 9/4/2015 59

60. 1099’s – DPAD Written notification to producers Total amount of allocation Producers allocation Download file into Word Document 9/4/2015 60

61. E-AgVantage Access Patron Information www.agvantage.com Products eAgVantage Test Drive 9/4/2015 61

62. C.D.D. Design Patron Lookup Screen 9/4/2015 62