Patronage Categories are set up at Setup / Patronage Categories. This screen is used to define up to 50 categories (such as Chemicals, Fertilizer, Corn Purchases, etc.) on which the co-op intends to base its Patronage disbursements.
- Patronage Category – Assign a name to the Patronage Category (30-character maximum).
- G/L Account – Assign a General Ledger Account to the Patronage Category established in the first column. Enter the G/L Account ID or select (by double-clicking) from the Select a G/L Account list. This G/L Account is the account where the Patronage Category posts (often either an expense or liability account).
- Pay Based On – Select one of the four available options: Sales Percentage, Sales Volume, Purchase Percentage, and Purchase Volume. This is used to determine whether transaction dollars (Sales or Purchase Percentage) or transaction quantities (Sales or Purchase Volume) are the basis for the calculation of the Patronage payment for that specific category.
Note: Settlement Deduction categories must have the pay based on Purchase Percentage. - Perc or $/Unit – This numeric text field is defined based on the selection in the Pay Based On column. If the previous column shows Percentage, the number entered in the Perc or $/Unit column will be a percentage. The percentage is entered with an implied two decimals. A two percent number would be entered as 2 and not .02. If the previous column shows Volume, the number entered in the Perc or $/Unit column will be a dollar per unit amount. Two dollars and thirty-five cents per pound is entered as 2.35.
- Print on Check Stub – Select this option if this Patronage Category is to be included on the stub of the Pay Detail Patronage Checks.
- Use Grain Units – This option allows the grain units to be used instead of Billing Units when capturing patronage totals.
- DPAD Rate – Enter the DPAD rate here to be used in the calculations on the Domestic Production report.
- Non-Qualified – Select this option when the category will be deferred to a non-qualified Stock Class.
- Unit Label – For categories paid out based on volume, a label may be entered for the volume. This label prints on the Patronage Check and the Pre-Check Run Report.
- Print – This prints a Patronage Category Reference List which displays all the information entered at the Patronage Categories window.
- Arrows – Select to change the order of the Patronage Categories. The order the categories display in this grid is also the order they print on the Patronage check stubs. To change the order, select the line by choosing the line number, and then select the Up or Down arrows to move the selected line in that direction.
Linking Inventory Departments to Patronage Categories
The Departments related to the specific Patronage Categories must be identified in the Accounting module at Setup / Inventory Departments. On the Department’s Patronage tab, the Patronage Category is selected by double-clicking Category and selecting the category or categories from the list. More than one category may be selected for companies paying multiple rates. The Patronage Categories must be set up at Patronage / Setup / Patronage Categories before this tab may be completed.
Linking a Commodity to a Patronage Category
Commodities involved in Patronage Payout must be linked to the corresponding Patronage Category at Grain / Setup / Commodities. The Patronage Category is selected by double-clicking on Category and selecting the category or categories from the list. More than one category may be selected for companies paying multiple rates. The Patronage Category must be setup at Patronage / Setup / Patronage Categories for each location to be included in the patronage payout for the commodity.
Note: DS Type relates to Direct Shipments. If paying different rates based on Direct Shipment status, the category must be selected more than once.
Linking Settlement Deductions to a Patronage Category
Settlement Deductions to be included in patronage payouts must be linked to the corresponding patronage category at Grain / Setup / Settlement Deductions. The Patronage Category is selected by double-clicking on Category and selecting the category or categories from the list. More than one category may be selected for companies paying multiple rates.
