Dividend Checks

Dividend checks, based on a Patron’s stock value, can be issued through Pay / Dividend Checks.

There are three methods available for the calculation of the Dividend payment. Regardless of the method selected, only Active Stock Certificates marked as Dividend Bearing at File / Open / Stock Certificates are included in the calculation.

• Select Stock Certificates – Choose Select to determine the Stock Certificates to be considered in the calculation of the Dividend Checks. Only Stock Certificates marked as Dividend Bearing are included.
  Note: Selection of Stock Certificates allows for filtering. There is access to three definable Patron filters: Active/Inactive, Starting and Ending Birth Date, Location, six definable Stock Filters, and a Stock Class selection. The filters are set up at Setup / Preferences on the Cross References tab.
• Check Date – Enter the date the check is issued.
• Sort By – Print checks by either the Patron’s last Name or Customer ID.
• Expense Account – Double-click to select the G/L account where the Dividend distribution should post.
• Withholding Account – Double-click to select the liability account where the backup withholding posts.
• Checking Account – Double-click to select one of the checking accounts established on the G/L tab at Accounting / Setup / Preferences. The General Ledger Account associated with the checking account is credited for the net amount of the check issued.
• Starting Check # – This defaults when the checking account is selected to the next check number in sequence based on the Last Check Used on the G/L tab at Accounting / Setup / Preferences. This check number may be overridden by typing in the desired number.
• Starting ACH # – This defaults to the next ACH number in sequence based on the Last ACH# on the G/L tab at Accounting / Setup / Preferences.
• Posting Options
  • Write Check – Print a check for total Dividend disbursed per Patron.
  • Defer/Later Pymt – Defer the check amount to be printed on Patronage Checks.
  • Accumulate – Accumulate the Dividend amount back to the Stock Certificates.
    Note: Selecting Defer/Later Pymt in the Posting Options changes the Checking Account to Deferral Account. The account selected should be the same account used at the time Patronage checks are printed. The Reference # replaces Starting Check #.
• Pay – Choose the calculation method to use.
  • Amt to Pay per Share – Enter a dollar value per share in the box provided. The dollar value is multiplied by the # of Shares on all the designated Stock Certificates. The results of the calculations on the individual Stock Certificates are added together for each Patron to calculate the total Dividend payment. One check is generated per Patron.
  • % of Total Value – Enter a percent in the box provided. The percentage is multiplied by the Total $ Value on all the designated Stock Certificates. The results of the calculations on the individual Stock Certificates are added together for each Patron to calculate the total Dividend payment. The percentage is entered with an implied two decimals. For example, two percent would be entered as 2 and not .02. One check is generated per Patron.
  • % Stored with Stock – Looks at the Rate (or percent) that is associated with (listed to the right of) the Dividend Bearing option on all the designated Stock Certificates. The Rate on each designated certificate is multiplied by the Total $ Value on that certificate. The results of the calculations on the individual Stock Certificates are added together for each Patron to calculate the total Dividend payment. The Rate is entered with an implied two decimals. For example, two percent would be entered as 2 and not .02. One check is generated per Patron.
• Pre-Scan – Print a summary report of the information to be paid.

Pay Dividend Checks Posting Notes

Selecting Post begins the printing of the Dividend Checks. A separate check prints for each Patron selected that has a calculated Dividend payment due. When all checks have printed, a message appears asking Did all checks print ok? Clicking Yes posts the checks. If the checks should not be posted for any reason, select No. Choosing No causes no posting to occur and the main Patronage window displays. If Yes is selected, the following posting occurs:

• The Dividend Check is saved.
• A Stock History entry is generated for each Stock Certificate used in the calculation of the Dividend payment.
• The Patron’s 1099 Div YTD$ is increased by the amount of the check.
• A General Journal Entry is posted to the current month for each Stock Certificate used in the calculation of the Dividend payment.

How to Pay Dividends

1. Select the Stock Certificates. Only Stock Certificates marked as Dividend Bearing will be included. This defaults to all Certificates, but specific Stock Certificates can be selected if necessary.
2. Verify the Checking Account, Starting Check #, and Check Date. All are required fields.
3. Select an Expense Account where the Dividend distribution will post.
4. Select the appropriate General Ledger Account for federal tax withheld. This is a required field.
5. Select the Posting Options:
   • Write Check – A physical check is produced.
   • Defer/Later Pymt – Hold payment until Patronage checks are disbursed.
   • Accumulate – Add payment to existing equity on Stock.
6. Select the Pay option to be used for the Dividend payment. If using Amt to Pay per Share or % of Total Value, enter the amount in the field provided.
7. Select Pre-Scan and choose Post. A report displays showing all the Dividend checks to be printed.
8. Unmark Pre-Scan and choose Post to print the checks. A message asks if all checks printed correctly. It is recommended to verify all checks have printed correctly before selecting Yes.

Note: When Defer/Later Pymt is the selected Posting Option, the checking account changes to Defer Account. The account selected should be the same account used at the time patronage checks are printed. Reference # replaces Starting Check #.