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

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

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

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

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 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

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

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

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

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

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

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

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/

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/

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

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

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

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

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/

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

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

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/

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

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

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

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

9/4/ 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 ENDING CALENDAR U9CARPT CUSTOMER NUMBER NAME G/L NUMBER LOC YEAR MO QUANTITY AMOUNT 112 TEST FILE LOOKUP NAME G/L TOTAL TEST FILE LOOKUP NAME G/L TOTAL TEST FILE LOOKUP NAME TEST FILE LOOKUP NAME G/L TOTAL CUSTOMER TOTAL GRAND TOTAL DATE- 4/21/09 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

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

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

Volume Processing Equity Credits Cash Refund 9/4/

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

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

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

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

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

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

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

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: /4/ Equity Redemption Checks

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 # /4/

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 /4/

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 /4/

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 # /4/

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.... 5/18/11 9/4/

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

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.. 9/4/

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/

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 9/4/

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

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 9/4/ V65 & V7

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/

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/

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 9/4/

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

1099’s – Purpims Reporting - u9grg0am1 9/4/

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/

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/

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

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/

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/

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

E-AgVantage Access Patron Information Products eAgVantage Test Drive 9/4/

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