Generating Dividend Checks

Portico offers two options for printing share dividend and certificate interest checks for your members.

• Automatic dividend withdrawal and check printing from a withdrawal check file. This option is valid for both share dividend and certificate interest check withdrawals. Checks with form number CUCK are required to generate dividend checks.
• Manual check withdrawal from the member's share account. This option is valid for certificate-interest withdrawals only.

You can use one or both of these options for printing share dividend and certificate interest checks. The automatic dividend withdrawal check printing option will print dividend checks for all share and certificate accounts including IRA accounts. The Disburse Dividends Due field on the Shares - General tab or the Payment Option field on the Certificates - Interest tab must specify K - Dividend Paid by Check. A valid IRA withdrawal code must appear in the IRA Withdrawal Code field on the Shares - General tab or the Certificates - Interest tab if the account is an IRA account.

The following fields and check boxes in the Dividend by Check section on the Credit Union Profile - Shares tab support dividends by check.

Field/Check Box	Description
Supported	If selected, the credit union uses the dividend check withdrawal feature. The Withdrawal by Check window allows you to print dividend checks on a continuous form or document insert printer and print a list of all the dividend checks. You can use the dividend check withdrawal feature to print dividend checks for all share and certificate types including IRA types. If the Disburse Dividends Earned field on the Shares- General tab is Dividend by Check or the Payment Option field on the Certificates - Interest tab is Dividend by Check, Portico withdraws the dividend amount, and the member information appears on the Withdrawal by Check window the morning after Portico posts the dividends. The Alternate Check Address dialog box lets you specify an alternate address on the dividend or interest withdrawal check printed by the Withdrawal By Check window. Use the Dividend Disbursement Consolidation Methods field on the Interest/Div/Lt Chgs/Fees tab to have the system consolidate multiple dividend amounts paid to the individual member on the same date and print one check. The individual dividend amounts and the associated accounts will print on the check stub. The IRA Withdrawal Code field on the Shares- General tab allows you to specify the IRA withdrawal code for the dividend check withdrawal from the member's IRA share account. The IRA Withdrawal Code field on the Certificates - Interest tab allows you to specify the IRA withdrawal code for the dividend check withdrawal from the member's IRA certificate. (Portico Host: 905 Transaction - SUPPORT field)
Withdrawal Branch	If selected, Portico will display all dividend withdrawal items for the branch the teller ID is signed into on the Withdrawal by Check window. (Portico Host: 905 Transaction - W\D BR field)
Withdrawal GL Account	The general ledger account credited during the back-office cycle when Portico withdraws the dividend amount(s) from the member's share or certificate account(s). Valid numbers can be 0 through 999999. However, the number specified must exist in your GL Chart of Accounts. System default 731000. After you print the check using the Withdrawal by Check window, you must debit this general ledger account for the total amount of printed checks using the Basic Journal Voucher window if a general ledger account other than your checking account general ledger appears in this field. Do not maintain this field if there are any outstanding checks to be printed or verified in any of the credit union's branches. This is a branch-level field. Length: 6 numeric (Portico Host: 905 Transaction - W\D G\L field)
Withdrawal Fee	The fee amount assessed by Portico for each dividend withdrawal check. You must specify the share account from which the system will take the fee in the Share Type for Dividend Check Fee field on the Interest/Div/Lt Chgs/Fees tab or the system will not assess a fee. The Share Type for CD Dividend Check Fee field on the Interest/Div/Lt Chgs/Fees tab defines the share type to be assessed the certificate dividend check fee. A valid fee amount can be 0 through 999.99. The system will not assess a fee if 0 appears in this field. Length: 6 numeric including decimal (Portico Host: 905 Transaction - W\D FEE field)
Fee GL Account	The general ledger account that should be credited during the back-office cycle when the system assesses the dividend withdrawal fees. The Supported check box must be selected and the Withdrawal Fee field must be greater than zero. Valid numbers can be 0 through 999999. However, the number specified must exist in the GL Chart of Accounts. This is a branch-level field. Length: 6 numeric (Portico Host: 905 Transaction - FEE G/L field)
Minimum Amount	The minimum dividend amount required to withdraw funds and print a check. The system will not withdraw the dividends or print a check if the dividend amount is less than the specified amount. The Supported check box must be selected. If the Dividend Disbursement Consolidation Methods field on the Interest/Div/Lt Chgs/Fees tab indicates that only one check will print for the combined dividend amounts, the system checks the total of all the dividends posted to the member's accounts with Dividend by Check in the Disburse Dividends Earned field on the Shares- General tab is Dividend by Check and the Payment Option field on the Certificates - Interest tab for the same effective date against the amount in the Minimum Amount field. If the member receives a separate check for each account's dividend amount, the system compares the individual amount to the amount in this field. A valid amount can range from 0 through 999.99. An amount of 0.00 indicates that any amount greater than zero will produce a check. Length: 6 numeric including decimal (Portico Host: 905 Transaction - MIN AMT field)

The Withdrawal by Check window lets you:

• Print checks for those accounts with dividend withdrawals during the previous back-office cycle.
• Print dividend withdrawal checks for all share and certificate accounts, including IRA accounts.
• Print one check at a time, print all the checks listed, or print a batch of checks based on the withdrawal effective date or member number range
• Reprint one or all the checks
• Print one check for a member with multiple dividend amounts. The Dividend Disbursement Consolidation Methods field on the Interest/Div/Lt Chrgs/Fees tab must be Consolidate all div w/d amts into 1 check. The Withdrawal by Check window displays only one entry for the consolidated amount, but prints the individual amounts and share and certificate types on the check stub.
• Display all of the withdrawals posted for the credit union or just the withdrawals posted for the branch that the teller is signed into. The Withdrawal Branch check box in the Dividend by Check section on the Credit Union Profile - Shares tab determines this option.
• Mark a check as deleted if you typed the check manually
• Print a report that lists the dividend check entries as displayed on the Withdrawal by Check window. The report prints on the audit printer specified in the Audit 1 field on the Print Profile - Assigned - Online tab.
• Renumber the checks for the Check Register system without reprinting the checks. Your credit union must use the Check Register Report 900 to change check numbers.

To access the Withdrawal by Check window, click General Operations from the Operations menu on the Portico Explorer Bar. On the General Operations menu bar, click Daily Checks, then click Withdrawal by Check.

The information appearing in the fields on the Withdrawal by Check window is a direct result of the dividend processing that occurred in the previous back-office cycle. During the back-office cycle, Portico performs the following steps:

1. Calculates and posts the dividends to the share or certificate account.
2. Verified that the dividend payment option is dividend by check.
3. Checks the combined dividend and fee amount against the amount in the Minimum Amount field on the Credit Union Profile - Shares tab.
4. Withdraws the dividend amount and assesses a fee, if applicable. You can charge the member a fee for printing the dividend withdrawal check. Specify the fee amount in the Withdrawal Fee field and the fee general ledger account in the Fee GL Account field in the Dividend by Check section on the Credit Union Profile – Shares tab. You must specify the share account from which the system will take the fee in the Share Type for Dividend Check Fee field on the Interest/Div/Lt Chgs/Fees tab or the system will not assess a fee.
5. Credits the general ledger account specified in the Withdrawal GL Account field on the Credit Union Profile - Shares tab for the dividend amount. Credits the general ledger account specified in the Fee GL Account field for the fee amount.
6. After you print the check using the Withdrawal by Check window, you must debit this general ledger account for the total amount of printed checks using the Basic Journal Voucher window.

The dividend information appears on the Withdrawal by Check window the morning after the dividends are posted in the back-office cycle.

How do I? and Field Help

The Withdrawal Date field indicates the date in which the system posted dividends to the member's share or certificate account(s) and then withdrew the dividend amount. If there are checks to be printed, the first withdrawal date in the dividend check file appears in this field when you access the Withdrawal By Check window. Multiple withdrawal dates will appear if the system posts dividends for two different effective dates during the same back-office cycle, or if checks remain to be printed or verified from the previous day. Click the Withdrawal Date down arrow to select a date from the pop-up calendar, then click the green arrow to view the checks. Click the left and right arrow to scroll through the dates.

The Withdrawal by Check Details grid displays the following information:

Column Heading	Description
Print Option	The print option selected for the dividend check. The valid options are: Blank - No action has been taken on this item D - Delete this item from the dividend check file. The system will not print a check. All items with Delete in this field will print at the end of the dividend check file report. Once you delete a check, you must print it manually. N - Do not print a check for this item. You can only specify the options N and D.
Member Number	The member number associated with the account receiving the dividends.
Account Type	The certificate or share type that earned the dividends.
Certificate Number	The certificate number purchased by the member. Length: 7 numeric
IRA Code	If the dividends will be withdrawn from an IRA account, click the down arrow to select a valid IRA withdrawal code. Click here to view the list of valid IRA withdrawal codes. Keyword: IW
Check Number	The check number automatically assigned if the credit union is using the Check Register system. If your credit union uses the Check Register Report 900, you can enter a new check number. As each check is formatted, Printed appears in the Status field and a check number appears in the Check Number field for the member. Length: 6 numeric
Check Amount	The amount of the check to be disbursed. If withholding occurred for the member, this amount reflects the dividend amount minus the withholding amount. For example: If the dividend amount is $100, and the withholding amount is $20, the amount appearing in this field is $80. Length: 12 numeric including decimal
Date	The date on which dividend withdrawals occurred. This is the effective date of the transaction, not the back-office cycle date.
Exception	The reason why the system could not withdraw the dividend amount from the member's share or certificate account. The member's information appears on the Withdrawal By Check window for display and reporting purposes only. The system will not print a dividend check. The valid exception codes are: 02 - Dormant - from member 05 - Closed account - from member 06 - Closed account - from member - fee 09 - Invalid or missing share account fee 10 - Invalid or missing share account 11 - Insufficient funds 12 - Insufficient funds for fee withdrawal 13 - Share hold - from member 14 - Share hold - from member - fee 15 - CD pledged 16 - Account closed in withholding 17 - Account not found in withholding 18 - Insufficient funds in withholding 19 - Account on hold in withholding 20 - Rule not found in withholding 21 - Member IRA not found in withholding 22 - Bad share withdrawal in withholding 31 - Bad CD withdrawal in withholding 32 - Invalid distribution code 33 - Member age not greater than 59 1/2 34 - Member age greater than or equal to 59 1/2 40 - Delinquent loan 52 - Dividend check amount less than amount defined in the Minimum Amount field in the Dividend by Check section on the Credit Union Profile - Shares tab 93 - Unable to create share withdrawal transaction 94 - Unable to create CD withdrawal transaction 95 - Unable to create fee withdrawal transaction 96 - Invalid or missing credit union rule 97 - Member IRA not found 99 - Other - created by back office Note: You cannot maintain this field.
Status	As each check is formatted, Printed appears in the Status field and a check number appears in the Check Number field for the member. The Status field will change to Verified when you click Verify Checks to verify that all the checks have been printed.

The morning after Portico posts and withdraws the dividends, complete the following steps to start the check-printing process:

1. In the Check Print Options group box:
   • Click the All Checks option (P) to print all the checks. The system ignores the information in the Withdrawal Date, Beginning Check Number, Beginning Member Number, and Ending Member Number fields. If there are a lot of checks to be printed, we suggest you select O instead of P and print the checks in small groups.
   • Click the Range option (O) to print a range of checks. The Withdrawal Date field is required if you select the Range option in the Check Print Options group box. You must specify a date equal to the date displayed in the Withdrawal Date field for an individual member. If you do not specify a withdrawal date, the system prints the checks in member number order within each withdrawal date. The system will print only the checks that meet the criteria specified in the Withdrawal Date, Number to Print, Beginning Member Number, and Ending Member Number fields. You must specify valid information in at least one of these four fields.
     • In the Beginning Member Number field, enter the beginning member number in a range of checks to be printed or reprinted (Length: 12 numeric). This field is required if you selected the Re-print Checks option. The beginning member number must be greater than zero, and less than the ending member number. For example, if you selected the Range option, you can type a beginning member number in this field, but leave the Ending Member Number field blank. The system will print checks starting with the beginning member number through the end of the date specified in the Withdrawal Date field or through the end of the dividend check withdrawal file if you do not specify the date. If you specify an invalid beginning member number, the system searches for the next highest number and starts the check printing at that member number.
     • In the Ending Member Number field, enter the ending member number in a range of checks to be printed or reprinted (Length: 12 numeric). This field is required if you selected the Re-print Checks option. The ending member number must be greater than zero, and greater than the beginning member number. If this field and the Withdrawal Date field are blank, and you specify a beginning member number, the system will begin printing checks from that member number through to the end of the file. If you specify an invalid ending member number, the system will print, reprint, or renumber through valid numbers until it reaches the invalid member number.
   • Click the Re-print Checks option (R) to reprint one or all of the checks. The system will reprint all checks which fall within the range specified by the Beginning Check Number, Beginning Member Number, and Ending Member Number fields that have a withdrawal date equal to the date in the Withdrawal Date field. When a check is reprinted, the system issues and voids the original check number and then assigns a new check number.
   • If you specify All Checks or Range, the value Printed will appear in the Status column. If you do not want a check to be printed or renumbered, select N - Do not print in the Print Option column, which will prevent the system from taking action on the check but will not delete the check from dividend check file
   • If you want to print all the checks for an individual member, leave the Withdrawal Date field blank and type the member number in both the Beginning Member Number and Ending Member Number fields.
   • The system ignores the withdrawal date if you select the All Checks option or click Verify Checks. If click the printer icon and there are multiple withdrawal dates, you must blank out the Withdrawal Date field to print the entire dividend check file.
2. In the Number to Print field, you can enter the number of checks to print (Length: 6 numeric). You can maintain this field to limit the number of checks that will print at one time when using the Range option or Re-print Checks option. If you do not specify a number in this field, the system prints the number of checks within the range.
3. Select the Return to Inventory check if the system should return the serial-numbered form to inventory or void the form (Keyword: RI). If not selected, the system will not return the form to the location's inventory. The form will appear as a voided (V) item on the Forms Disbursal Journal tab and Check Register Report 900. If selected, the system will return the form to the location of the teller performing the transaction. If the form is part of your inventory, the system will place the form at the beginning of the inventory for the primary location. If not, the system will return the form to the beginning of the alternate location's inventory. The system will then remove the issue (I) record from the forms or check register file. The returned form will become the location's next available form for disbursement.
4. The Beginning Check Number field is automatically assigned if you credit union is using the Check Register system (Length: 6 numeric). If you entered an incorrect beginning check number but the checks printed correctly, you can use this option to correct your check register information. You can renumber the checks to correct your check register without reprinting checks by entering a new check number in the Beginning Check Number field. Valid information must appear in the Beginning Check Number and Beginning Member Number fields. You cannot use this option after you click Verify Checks.
5. In the Check Printer field, enter the network ID for the dividend check printer (Length: 8 alphanumeric). You can specify a different check printer for use in printing the dividend withdrawal checks. Maintenance to this field will not change the Print Profile dialog box.
6. If you do not want a check to print, you can delete the check from the dividend check file by clicking the Print Option down arrow and selecting D - Delete. After you click Submit, Portico will remove the deleted item and place it with any exception items. If you delete a check, you cannot print it using the Withdrawal by Check window; you must manually type the check.
7. If you do not want a check to be re-printed, click the Print Option down arrow and select N - Do not print.
8. Click Submit. Portico formats and prints the checks. As each check is formatted, Printed appears in the Status field and a check number appears in the Check Number field for the member. Click Reset to clear the fields on the Withdrawal by Check window.
9. Click Verify Checks to verify that all the checks have been printed. The Status field will change to Verified. Do not click Verify Checksuntil all your checks have printed correctly and Printed appears in the Status field. The system ignores the date in the Withdrawal Date field.

Click View Exceptions to view any deleted and exception items. The system will display only those items with an exception code in the Exception column or Deleted in the Status column.

The Form Location field displays the form location for the check stock. Checks with form number CUCK are required to generate dividend checks. The first letter indicates the location type, followed by the inventory forms location ID. The valid options are: S - Supplier, V - Vault (main inventory for branch), D - Drawer (distribution point for members), and M - Mutilated (forms destruction inventory). The system only displays this field on the Withdrawal By Check window if the Forms Management check box is selected in the Products section on the Credit Union Profile - Products & Services tab.

Portico automatically prints a report on the audit printer that lists the dividend check entries, including the check number and address. The Totals group box shows the total dollar amount of checks printed or deleted.

Field	Description
Printed	The total dollar amount of the printed dividend checks for the specified withdrawal date. This total does not include the amounts of any deleted items or any items with an exception code. An amount does not appear in this field until you have verified that all checks have printed. You cannot maintain this field. Length: 12 numeric including decimal
Deleted	The total dollar amount for checks with the specified withdrawal date that have been deleted. You cannot maintain this field. Length: 12 numeric including decimal
All Checks	The total dollar amount of all checks with the specified withdrawal date that do not have an exception code. The total equals the sum of the amount in the Printed field plus the amount in the Deleted field after checks have been printed and verified for that withdrawal date. This is the amount the system posted to the general ledger account specified in the Withdrawal GL Account field in the Dividend by Check section on the Credit Union Profile - Shares tab. You cannot maintain this field. Length: 12 numeric including decimal

Click the printer icon to print the dividend check file report on the audit printer specified in the Audit 1 field on the Print Profile - Assigned - Online tab. You can print the report before or after checks have been printed. The member information displayed on the Withdrawal by Check window prints on the report. Items with Deleted in the Status field or an exception code in the Exception column will print at the end of the report. The total dollar amount of checks printed or deleted appears on the total line at the end of the report. If all checks are printed, the amount shown on the report as the total dollar amount of checks printed equals the amount posted to the general ledger account specified in the Withdrawal GL Account field in the Dividend by Check section on the Credit Union Profile - Shares tab. If there are multiple withdrawal dates, you must blank out the Withdrawal Date field to print the entire check file.

If withholding occurred when dividends were posted, Portico automatically subtracts the withholding amount from the dividend amount and withdraws the difference from the member's account for the dividend withdrawal check. For example, dividends are $100, withholding is $20, and the check is for $80.

A dividend check cannot by processed if the member has a delinquent loan, even if the loan is only one day delinquent. This restriction is hard coded in Portico and cannot be changed.

To manually withdraw dividends from the member's account, use the Single Deposit, Withdrawal, Payment or Loan Advance tab.

The teller who originated the Withdrawal by Check window will not be able to close until verification has been completed. If another teller completes the verification, the original teller will be able to close. If the verification process is not complete, the message CHECKS REMAIN TO BE VERIFIED FOR TELLER - XX will appear on the Balancing and Close window. If necessary, you can select the Force Logoff check box on the Balancing and Close tab to force close the teller.

If you use the force logoff option, the checks will display on the Withdrawal by Check window the next day, and the system will not update the Check Register system.

The member's name and address as specified on the Contact Information tab automatically print on the check. You can specify an alternate address on the Alternate Check Address dialog box for each of the member's checks. If the Dividend Disbursement Consolidation Methods field on the Interest/Div/Lt Chrgs/Fees tab must be Consolidate all div w/d amts into 1 check, you can only specify one alternate address for the member.

You can charge the member a fee for printing the dividend withdrawal check. The Withdrawal Fee and the Fee GL Account fields in the Dividend by Check section on the Credit Union Profile - Shares tab specify the fee amount and fee general ledger account. Use the Share Type for CD Dividend Fee and Share Type for Dividend Feefields on the Interest/Div/Lt Chrgs/Fees tab to indicate the share types debited for the fee or to exempt the member from fees.

The history code for the dividend check withdrawal is BC and the statement message is CHECK WITHDRAWAL. The history code for the dividend withdrawal fee is WF and the statement message is CHECK W\D FEE.

You can perform a member number change for a member number appearing on the Withdrawal by Check window, but the system will not change the member number on the Withdrawal by Check window.

You can perform a member branch change for a member number appearing on the Withdrawal by Check window.

The Withdrawal by Check window supports both the standard and alternate check formats as specified in the Check Format field in the Options section on the Credit Union Profile - Print tab.

To access the Withdrawal by Check window, users must be assigned to the Portico – General Operations – Daily Checks security group or you can add these permissions to a credit union-defined security group using the Security Group Permissions – Update window.

• Portico - Explorer General Operations - Menu Option
• Portico - Daily Checks - Menu Option
• Portico - Daily Checks - Withdrawal by Check - Menu Option
• Portico - Daily Checks - Withdrawal by Check - View Only
• Portico - Daily Checks - Withdrawal by Check - Maintain

General Ledger Effects: The Withdrawal by Check window does not perform general ledger entries. Dividend checks appearing on the Withdrawal by Check window have been credited to the general ledger account specified in the Withdrawal GL Account field in the Dividend by Check section on the Credit Union Profile - Shares tab. However, you must manually perform an entry on the Basic Journal Voucher window after the system prints the dividend withdrawal checks, if you use a dividend withdrawal check general ledger other than your checking account general ledger. Make the following debit and credit entries on the Basic Journal Voucher window:

• DEBIT XXXXXX General ledger account specified in the Withdrawal GL Account field in the Dividend by Check section on the Credit Union Profile - Shares tab
• CREDIT XXXXXX Checks disbursed general ledger account

Related Reports:

• Non-Financial Transaction Register Report 030 (if individual member withdrawal item is deleted)
• Non-Financial TXN Employee Register Report 036 (if the deleted withdrawal item was for a credit union employee)
• Branch Summary of Check Register Report 893
• Check Register Report 900

The dividend withdrawal activity that occurs during the back-office cycle appears on the following reports:

• Dividend Report 220
• Back-Office Summary Report 340/341
• Financial, IRA, and Cumulative Financial Transaction Register Reports 420/421/444

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