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United States
Department of
Agriculture

  December 11, 1998
Farm and Foreign
Agricultural
Services

MAP-98019
Foreign
Agricultural
Services		 SUBJECT:


TO:

 Documentation Required to Support Reimbursement Claims Involving Credit Memos


All MAP Participants
1400
Independence Ave., SW
Stop 1042
Washington. DC
20250-1042		 BACKGROUND: On June 2, 1998, CCC issued a final rule amending the MAP regulations to accept credit memos as documentation for participant reimbursement claims. The proposed rule, published February 25, 1998, indicated that CCC would adopt and implement audit controls to permit the use of credit memos while adequately protecting CCC's interests.
  DOCUMENTATION: Listed below are the documents that are required to be kept on file (for 5 years) by MAP participants and individual companies when using credit memos for documentation to support reimbursement claims. In addition to its MAP participant audits, CCC reserves the right to audit individual companies.

Participants must keep:

1. Proof of a commercial sale from the branded participant (small company or cooperative) to the vendor involved in the activity (e.g., a sales invoice showing the sale of the branded participant's product to the grocery store.)

2. Proof the activity was performed according to the contract (this is a requirement for reimbursing any contracted activity.)

3. Documentation showing payment from the vendor (e.g., the grocery store) to the branded participant or its local representative for the difference between the cost of the promotion and the purchase price of the branded participant's product, or documentation showing the value of the promotion was subtracted from the sale of the product.

Companies and Cooperatives must keep:

1. Accounting data showing the debt was satisfied at the prices reflected on the above documentation.

2. Sales records establishing that the prices charged the vendor or contracted party (grocery store) on the sale offset by the credit memo were consistent with similar commercial sales which occurred during the same time period.

If you have questions regarding this notice, please contact Mark Slupek of the Marketing Operations Staff on (202) 720-1571.
  If there are any questions, please contact the Marketing Operations Staff on (202) 720-4327.
  KENT D. SISSON
Director
Marketing Operations Staff

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Last modified: Tuesday, November 04, 2003