BIR Ruling [DA-421-98]

September 15, 1998 BIR RULING [DA-421-98] San Miguel Corporation 40 San Miguel Avenue Mandaluyong City Attention: Mr . Jose S . Tayag, Jr . Vice President and Manager Tax Management Department Gentlemen : This refers to your letter dated December 18, 1995 requesting authority to adopt a fully computerized system of issuing computer-generated receipts and invoices using the Rover Handheld, Sub-Notebook and Sales Office Server Computers. cd It appears that the Rover Handheld/Sub-Notebook Computer is carried by Salesmen; that this Rover Handheld/Sub-Notebook Computer gets data and instruction from the Sales Office Server Computers and downloads Cash Sales and Sales Order Slips to the Sales Office Server Computers; that the Sales Office Server Computer receives and captures sales collection data from the salesmen and generates the following daily reports: Daily Sales Report; Order Register; Daily Collection Report; Sales Invoice List; Official Receipt List; Salesman/s Liquidation Report; Summary of Deposits; Outlet Report Listing; Accounts over Credit Limit; Past Due Accounts List and Daily Sales and Stock Report; that based on Order Register, the Sales Office Server Computer generates Sales Invoices in two (2) copies; the original goes to the customers, while the duplicate is kept for file; that the Salesman visits the customers to collect outstanding Credit Invoices; that the Rover Handheld/Sub-Notebook Computers generates Official Receipts in two (2) copies and Salesman gives the originals to the customers and the duplicate kept for file; that the Summary Reports of each Sales Office are uploaded to the Finance Center where another Summary Report by Regions is generated by the Finance Center Server Computers; that the Summary Report by Regions generated at the Finance Center is then uploaded to the Head Office and entered into the General Ledgers, which are the basis for the preparation of Financial Statements and the payment of taxes. Further verification disclosed that based on the Order Register, the Sales Office Computer generates Sales Invoices in two (2) copies: the originals go to the customers, while the duplicates are kept for file. More specifically, the procedure is described, as follows: (1) That the salesmen visit the customers to collect outstanding Credit Invoices. The Rover Handheld/Sub-Notebook Computer generates Official Receipts in two (2) copies and salesmen give the originals to the customers and the duplicates are kept for file. (2) The Summary Reports of each Sales office are uploaded to a Finance Center where another Summary Report by Regions is generated by the Finance Center Server Computers. (3) The Summary Report by Regions generated at the Finance Center is then uploaded to the Head Office of San Miguel Corporation and entered into the General Ledgers, which are the basis for the preparation of Financial Statements and payment of taxes. In reply, please be informed that Title IX, Chapter I of the Tax Code requires the daily recording of transactions and keeping of records of at least three (3) years. In the case of using Rover Handheld/Sub-Notebook Computer, the daily recording of sales is complied with its Sales Invoice List, Daily Sales Summary and Monthly Sales Summary. The daily recording of collections is complied with by its Official Receipt List. Considering the present development in technology and in order to update your policy towards the eventual use of Handheld Sub-Notebook and Sales Office Server Computers for accuracy, economy and speed in issuing receipts and invoices, your request to print and issue computer generated receipts and invoices is hereby approved subject to the following conditions: (1) A readable print-out of the information / accounting data should be made available and / or verifiable; and (2) Diskettes containing records, classification and summary of transactions shall be subject to examination and inspection of internal revenue officers as if they are the traditional manual books of accounts in accordance with Section 235 of the Tax Code, as amended. (BIR Ruling No. 036-95 dated February 16, 1995) cdta but the numbers on blank paper rolls or continuous computer forms generated by the use of Rover Handheld, Sub-Notebook and Sales Office Server Computers is provisionally granted, subject to the formal adoption of the proposed Unified Invoicing System. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue