When sorting, bad zip codes will always be skipped.  Also skip if zip code does not match:
These boxes allow you to decide whether Postage $aver will include or skip over zip codes that are apparently inconsistent with the states and cities that they are addressed to. If cities or states are not included in the files you are sorting with Postage $aver, these settings are ignored. These settings do not affect the operation of Postage $aver when you are verifying (rather than sorting) one or more files.

state name: If two-letter state abbreviations are included in your input file, Postage $aver will check the first three digits of each zip code to determine whether the state is correct for that three-digit zip area. If not, Postage $aver checks a list of zip codes that are exceptions to the three-digit list. If the state still looks incorrect, Postage $aver flags this entry. If this box is checked, this entry will not be included in your sorted mail. Whether the box is checked or not, this entry will appear in the "Rejected and Questionable Zip Codes" report at the end of the Bulk Mail Sort Report.

city name: If city names are included in your input file, Postage $aver will check the first three digits of each zip code to determine whether the zip code is in what the USPS calls a "unique city."  Unique cities are generally those with enough post offices to need an entire three-digit area. (For example, all zip codes starting with 770 are used by Houston post offices.) If the zip code being checked is part of a unique city, Postage $aver will look to see if the city name in your file matches that of the unique city.
If not, and if this box is checked, this entry will not be included in your sorted mail.  Whether the box is checked or not, this entry will appear in the "Rejected and Questionable Zip Codes" report at the end of the Bulk Mail Sort Report.
Warning: There are some post offices in unique cities that can be correctly addressed using a city name other than that of the unique city. Because of this, we recommend that you consider not checking this box, since the city may be correct even though Postage $aver questions it. Questionable zip/city combinations will be listed in the "Rejected and Questionable Zip Codes" report, regardless of whether you check this box.
Another warning: Since Postage $aver only carries a list of unique cities, and not a full list of post offices, many zip/city combinations will not be checked, regardless of whether you check this box.
Nonetheless, we think this is a useful tool for catching many errors.

Separate home SCF mail from other mixed states.
This box lets you create an extra sack for "leftovers" that are addressed within your home sorting area. Generally, the USPS gives you the option of creating this separate sack or of including these pieces in a "mixed states" sack of assorted mail. Since your mixed sack usually must travel to another city, separating the local mail tends to get it delivered faster.
Attention mailers in Alaska and Guam: The USPS requires that you create this separate sack, so that your local mail does not travel to the mainland. If you are a mailer in Alaska or Guam, you must check this box or your mailing will not meet USPS requirements.

Create output file. This feature is not active on unregistered copies of Postage $aver.
When this box is checked, Postage $aver will create an output file for each file you sort. The output file is used to provide sorting information and endorsement lines back to your data base. (Endorsement lines are the lines you can use on your address labels to avoid using sticky red dots on your mail.)

The output file is a tab-separated text file. The data in each record of the file is in the following order:
Sack number
Package number
Zip code number
Endorsement line.

The records in the output file are in the same order as the records in the input file, so the output file can be directly imported back into your data base. Then, to sort your data base so that labels will be printed in the same order as Postage $aver's Bulk Mail Sort Report, use the sack number as the primary sort, followed by the package number, followed by the zip code number. (Rejected pieces will be at the end of the list.) If you use Postage $aver to sort several data bases at once, there will be a sort file created for each data base, so that you can import each output file back into its corresponding data base without needing to separate the output files manually.

To use the endorsement line, place it as the very top line of each address, above all other address information including names and any other list identifiers. The endorsement line must be right-justified, and, if possible, all blank space on the line should be filled with asterisks. If you properly include the endorsement line with each address, you are not required to use USPS stickers to identify each package of mail.

Use Standard File Names: This feature is not active on unregistered copies of Postage $aver.
This box determines what the output files created by Postage $aver will be named. If you do not check this box, Postage $aver will stop and ask you for a file name for each output file it creates. If you do not want to have to bother supplying these names, or if you want to create a script or macro in your data base program that looks for the same file name every time, then check this box. If this box is checked, the output file created when you sort a single data base file will be named "P$sort.1". If you sort two data bases together, the output file for the first data base will be named "P$sort.1", while the file for the second data base will be named "P$sort.2", and so on for additional data bases. Files using the standard file names will be placed in the same folder as Postage $aver.