Pennsylvania Administrative Code

DEALER INDUCEMENTS § 146.21. Giveaways. Milk dealers and their affiliates, subsidiaries or representatives thereof may not give or lend any milk, milk products, money, article, prize, award or any other item to a customer or a prospective customer, as an inducement for the purpos…

§ 146.22. Sampling prospective retail customers and established retail customers. The practice of providing free samples to prospective retail customers or to established retail customers may not be permitted. This section does not apply to on-the-premises consumption in stores o…

§ 146.23. Gifts to established retail customers. (a) Dealers may distribute to any of their established retail customers, but not to prospective retail customers, free of charge, in any one calendar year, any gift including milk, milk products, or other item, if the cost to the d…

§ 146.24. Samples or gifts to wholesale customers. (a) Samples of a product may not be given to a wholesale customer or prospective wholesale customer by or on behalf of a milk dealer. (b) Gifts of any value may not be given by a dealer to a wholesale customer or to a purchasing …

§ 146.25. Extension of credit to wholesale customers. (a) Extension of credit to a wholesale customer, excluding a hospital, school or government agency, beyond 30 days from the date of invoice is prohibited. (1) The invoice from dealers to customers must be rendered at least mon…

§ 146.3. Leasing agreements. (a) Whenever a dealer or subdealer leases refrigeration equipment, or milk or cream dispensers or similar facilities to a wholesale customer, the lease agreement must be reduced to writing and provide for a payment of at least the minimum price establ…

§ 146.4. Sale of equipment. (a) Whenever refrigeration equipment, or milk or cream dispensers, or similar facilities are sold to stores or other wholesale customers, the agreement of sale must be reduced to writing and contain the following: (1) A complete description of the equi…

§ 146.5. Exceptions for certain schools regarding refrigeration equipment. Dealers or subdealers installing refrigeration equipment, including milk vending machines, dispensers and milkshake dispensers in schools which are approved for the school milk program and which are eligib…

§ 146.6. Maintenance of equipment. (a) Maintenance of equipment when it is leased to the customer may be the responsibility of the lessor. When maintenance is performed by the lessee, no charge may be made to the lessor dealer for maintenance. (b) Maintenance of equipment, whenev…

§ 146.7. Identification of ownership of equipment. Dealers or subdealers leasing equipment to customers shall identify the equipment as the property of the dealer by painting, decal or metal plate affixed to the equipment. Identification shall be placed on all equipment in place …

§ 146.8. Unfair pricing. (a) Sale of equipment by a dealer or subdealer to a wholesale customer at a price less than the brand or retail list price or fair market value of the equipment when there is no list price, is prohibited. (b) When purchasing any equipment or property from…

§ 146.9. Financing. Milk dealers and their affiliates, subsidiaries or representatives thereof may not provide financial accommodations for a wholesale customer by lending money to the customer, or by paying or guaranteeing the payment of any obligation of the customer, or by act…

§ 147.1. Sales invoice. All wholesale sales of milk, dairy products, or other products shall be accompanied by a sales invoice which shall be retained by the buyer for a period of 3 months, and which shall contain the following information: (1) Date of sale. (2) Name and address …

§ 147.10. Monthly reports. (a) Licensees, including subdealers, milk haulers, and stores shall make and file verified reports with the Board of all matters on which records shall be required to be kept, together with other information and facts which may be pertinent and material…

§ 147.11. Annual financial statement. (a) Year-end adjustments, auditor adjustments, or tax adjustments made after a milk dealer has submitted his annual financial statement to the Board shall be reported to the Board within 30 days after adjustments are made, in the form of an a…

§ 147.12. Contracts for sale or lease of refrigeration equipment. Whenever a dealer or subdealer which is subject to § 146.1 (relating to applicability) sells or leases refrigeration equipment, milk or cream dispensers or similar facilities to a customer, the agreement of sale or…

§ 147.13. Reports on transactions with wholesale customers other than sale of refrigeration equipment. Before a dealer enters into any oral or written agreement or arrangement of any kind with a wholesale customer under which the dealer is to furnish, directly or indirectly, anyt…

§ 147.2. Retention of wholesale delivery slips. Dealers shall retain for two years copies of delivery slips, or equivalent records, of all sales and deliveries to wholesale customers, whether such sales are cash, credit, route, or general office accounts. Such records shall clear…

§ 147.3. Driver’s daily load, return and settlement sheets. (a) Section 701 of the act (31 P.S. § 700j-701) requires that dealers retain copies of daily load, return and settlement sheets for each driver for 2 years. (b) The cash receipts of each driver shall be shown on his sett…

§ 147.4. Bill of lading. (a) All sales of bulk milk between dealers or handlers, whether the transaction is intrastate or interstate, shall be accompanied by a bill of lading or a similar document, a copy of which shall be kept on file by the selling dealer and the hauler for a p…

§ 147.5. Control accounts. (a) Dealers shall maintain in their general ledgers, or equivalent books of record, separate control accounts covering the following items: (1) Accounts receivable arising from sale of merchandise. (2) Amounts due a dealer for loans, advances, notes and…

§ 147.6. Cash received account. (a) Except for isolated or incidental sales, whenever cash-receipts entries are combined or summarized into one entry in the cash receipts journal or other records and are not supported by the drivers’ daily load, return and settlement sheets, the …

§ 147.7. Cash disbursements account. Cash payments and checks drawn by dealers to the order of cash or to any person, corporation or association shall be explained on the books and records of the dealer. Explanations shall include the purpose for which the expenditure was made an…

§ 147.9. Equipment records. Dealers engaged in selling or leasing equipment of any type to wholesale milk customers shall maintain in current condition the following records: (1) Inventory of each item of such equipment detailing the complete financial and location history from d…

GENERAL INSTRUCTIONS § 149.1. Basic requirements. Records. Milk dealers subject to license by the Board shall keep, within this Commonwealth, the following records: (1) A record of the quantity of all milk received or produced, detailed as to location and as to names and addresse…

§ 149.2. Definitions. The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise: Accounts—The accounting titles prescribed in this chapter. Controlled items—The revenues and expenditures generated from th…

SPECIFIC INSTRUCTIONS § 149.21. Sales to affiliated and related organizations. All sales to affiliated or related organizations shall be recorded as controlled or non-controlled, whether or not the Board controls the resale prices. Prices recorded for sales to such organizations …

§ 149.22. Returns, allowances, and discounts. Sales, as used throughout this chapter, are gross sales, and they are thus recorded in the appropriate account classification. Discounts on sales are to be shown as separate items and thus recorded in the appropriate accounts. ‘‘Retur…

§ 149.23. Separating costs into controlled and non-controlled. Although it is agreed that both the Board and, in some areas, the Federal government ‘‘control’’ the cost of raw products purchased from producers, the division of costs into controlled and noncontrolled for financial…

§ 149.24. Separating expenditures for raw product into controlled and noncontrolled amounts. (a) From the milk dealer’s monthly report, the product and butterfat pounds sold or utilized shall be determined for each producer payment category, as follows: (1) Controlled, Class I (2…

§ 149.25. Hauling by affiliated or related organizations. Such hauling organizations, regardless of organization or name, will be considered a part of the sponsoring dealer. Expenses shall be included in the receiving cost center while revenue shall be included in the hauling rei…

§ 149.26. Distribution of costs. (a) Natural expense accounts shall be allocated directly, wherever possible, to the appropriate cost center, except for ‘‘Executive Salaries,’’ which shall be allocated only to the ‘‘Administrative’’ center. (b) Distribution of costs accumulated i…

§ 149.27. Purchase discounts. Purchase discounts shall reduce the cost of an asset or expense.

§ 149.28. Point values. (a) Point value for allocation of plant cost centers shall be as follows: 1 fluid gallon-milk, etc., ice cream fruit drinks, yogurt4 points, others in proportion Dips, sour cream, cottage cheese 12-16 oz.1 point Under 12 oz.1/2 point Butter, margarine, bre…

§ 149.29. Deliveries of ‘‘Dock Pick-Up’’ sales by affiliated or related organizations. Affiliated or related delivery organizations, with or without a milk hauling or P.U.C. license, will be considered a part of the sponsoring dealer. Expenses shall be included in the applicable …

§ 149.3. Records. (a) Each licensee shall keep its books of account and other books, records, and memoranda which support the entries in such books of account so as to be able to furnish readily full information as to any item included in any account. Each entry shall be supporte…

§ 149.30. Bad debts. A reserve for bad debts account must be established and maintained. In order to maintain uniformity, the bad debts reserve at month’s end cannot exceed the average percentage that the actual bad debts for the preceding moving average 5-year period relates to …

§ 149.31. Depreciation. (a) Depreciation on each capital asset shall be computed on a straight line basis. Accordingly, it is necessary to establish a schedule setting forth the useful lives of each capital asset. The following table presents the lives that shall be used: ASSETSc…

§ 149.32. Crediting ‘‘other income’’ against expenses. Since miscellaneous ‘‘other income’’ items are usually the result of expenses incurred, they shall be considered as credits against expenses in the most appropriate cost center. For example: Consulting income or income from c…

§ 149.33. Adjusting and closing the books. (a) At the close of each annual accounting period, adjustments for accruals, deferrals, and so on shall be recorded on worksheets and the books in accordance with standard accounting practice. The supporting documents and calculations fo…

§ 149.4. Accounting period. (a) Each licensee shall post its books on a monthly basis so that, for each month, all basic transactions applicable thereto as nearly as may be ascertained shall be recorded chronologically in the books. This requirement does not include adjustments f…

CHART OF ACCOUNTS § 149.41. Balance sheet accounts. (a) Current assets. Current assets shall conform with the following: (1) Cash undeposited. This account shall be a clearing account for all cash received in the ordinary course of business and not yet deposited in the bank. (2) …

§ 149.42. Income and cost of sales accounts. (a) Sales. Sale shall conform with the following: (1) {Reserved}. (2) {Reserved}. (3) {Reserved}. (4) {Reserved}. (5) Noncontrolled sales of bulk milk and cream and condensed and powder—Includes the total dollar value of sales of bulk …

§ 149.43. Cost centers and operating accounts. (a) Cost centers shall be as follows: (1) Receiving, laboratory, and field work. (2) Standardization and pasteurization. Productive cost center, which includes accountable costs associated with standardizing, pasteurizing and homogen…

§ 149.44. Other income and expense accounts (non-operating). (a) Other income. Other income accounts shall conform with the following: (1) Gain on sale of equipment—Includes gain realized upon disposition of a fixed asset. (2) Sale of farm supplies—Includes income from sale of fa…

§ 149.45. Supporting documents for annual financial statements. (a) Each month, sales summaries shall be prepared which shall include quantities and dollar values for each separate category of product. The dollar values shall equal dollars recorded in appropriate sales accounts a…

§ 149.46. Cooperative cost centers. (a) Cost centers for cooperatives, as defined in the act, shall be as follows: (1) Field services. Providing direct assistance to producers by inspecting and improving producer milk production and quality. (2) Laboratory. Testing for quality an…