Found at Pay / Running Balance Interest Checks, the interest checks are based on the running balance of Patron activity per certificate. There are four methods available for the posting of the interest payment. Regardless of the method selected, only Active Stock Certificates marked as Interest 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 Interest checks. Only Stock Certificates marked as Interest Bearing are included.
Note: Selection of Stock Certificates allows for filtering. Access is available 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.
- Expense Account – Double-click to select the G/L account where the Interest distribution should post. This is a required field.
- Withholding Account – Double-click to select the G/L account to be used for the backup tax withholding. This is a required field.
- Checking Account – Double-click to select one of the checking accounts established on the G/L tab at Accounting / Setup / Preferences. The G/L account associated with the selected checking account is credited for the net amount of the check issued.
- Starting Check # – When the checking account is selected, this defaults 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 entering the desired check 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.
- Date Interest Last Paid – Enter the date Interest Checks were last paid. Interest is calculated from this date based on a daily average balance.
- Liability Account – When the Accrue Interest To GL option is selected, enter the liability account for the credit side of the Journal Entry for the interest accrued.
- Pay
- Annual Rate % – This is the annual percentage rate used to calculate the interest.
- % Stored with Stock – This option uses the interest percentage stored on the Stock Certificate.
- Sort By – Choose to print checks by either the Patron's last Name or Customer ID.
- Posting Options
- Write Check – This option prints a check for total dividend disbursed per Patron.
- Defer/Later Pymt – Selecting this option defers the check amount to be printed on Patronage Checks.
- Accumulate – Choosing this accumulates interest earned back to the original Certificate.
- Accumulate to Class – Selecting this option accumulates interest earned to Stock Class selected.
- Accrue Interest To GL – This option does not post any Patronage amounts to the Patron file but creates a Journal Entry accruing the interest amount which debits the expense account and credits the liability account specified. A reversing Future Journal Entry for this accrual is also created.
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 the Starting Check #.
- Pre-Scan – Selecting this displays a summary of the information to be updated.
Pay Running Balance Interest Checks Posting Notes
Selecting Post begins the printing of the interest checks. A separate check prints for each selected Patron with a calculated interest payment due. When all checks have printed, a message appears asking Did all checks print ok? Clicking Yes will Post the checks. If for any reason the checks should not be posted, select No. No posting occurs and the main Agvance Patronage window displays. If Yes is selected, the following posting occurs:
- The Interest Check is saved.
- A Stock History entry is generated for each Stock Certificate used in the calculation of the interest payment.
- The Patron’s 1099 Int 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 interest payment.
| General Ledger Entry | Debit | Credit |
|---|---|---|
| Total amount disbursed | Expense Account (selected at Payout window) | |
| Liability withheld for federal taxes | Withholding Account (selected at Payout window) | |
| Amount payable to Patron | Checking Account (selected at Payout window) |
How to Pay Running Balance Interest Checks
- Select the Stock to pay running balance Certificates. Only Stock Certifications marked as Interest Bearing are included. This defaults to all Certificates, but specific Stock Certificates may be selected if necessary.
- Verify the Checking Account, Starting Check #, and Check Date.
- Select an expense account where the interest distribution is to post. This is a required field.
- Select the appropriate General Ledger Account for federal tax withheld. This is a required field.
- Enter the date interest was last paid.
- Select the Pay option.
- Annual Rate % – Enter the rate to be paid per certificate.
- % Stored with Stock – This uses the rate stored per Certificate in the calculation of interest.
- Select the Posting Option:
- Write Check – A physical check is produced.
- Defer/Later Pymt – Hold payment until checks are disbursed.
- Accumulate – Add payment to existing equity on Stock.
- Accumulate to class – Select the Stock Class where the interest is to accumulate.
- Select Pre-Scan and choose Post. A report displays showing the interest checks to be printed.
- Deselect 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 #.
