Prescribing the Functions of the Makati Data Center and the Devolved Functions in Document Processing for Revenue District Office Nos. 47 - East Makati, 48 - West Makati, 49 - North Makati and 50 - South Makati

February 23, 1999 REVENUE MEMORANDUM ORDER NO. 21-99 SUBJECT : Prescribing the Functions of the Makati Data Center and the Devolved Functions in Document Processing for Revenue District Office Nos. 47 - East Makati, 48 - West Makati, 49 - North Makati and 50 - South Makati TO : All Revenue Officials and Employees Concerned I. Introduction The Makati Roll-out is distinct and different from the existing set-up of revenue data centers (RDCs). Document processing which is a major activity in an RDC is devolved to the revenue district offices (RDOs). With this new order of the Commissioner, the respective roles and functions of the Makati Data Center (MDC) and the RDOs in terms of document processing have to be redefined. II. Objectives This Order is issued: a. To delineate document processing functions devolved to the RDOs. b. To define the functions of the MDC. c. To prescribe procedures relative to the document processing functions of the RDOs and the support required from the MDC. III. Policies 1. The original copies of returns/documents from the accredited agent banks (AABs) shall be picked up by the respective RDOs, while the duplicate copies shall be submitted by the AABs to the Administrative Division of the Makati Regional Office. 2. The AABs shall send payment transactions to MDC through electronic data transmission (EDT). 3. The RDC devolved activities in document processing shall be in addition to the current/existing functions of the RDOs. 4. The RDOs shall make use of the Return Encoding-Limited Version in capturing return information into the ITS. 5. The MDC shall provide all the technical support to the RDOs including the generation and printing of the required reports. 6. The MDC Head shall coordinate with the RDOs to ensure that the document processing activities are up-to-date to come up with timely and accurate tax collection information. IV. Procedures At the Makati Revenue District Offices , A. Office of the RDO: 1. Supervise daily processing of documents; 2. Elevate issues/concerns from the production units to the MDC. B. Collection Section - RDO: B.1 The Bank Monitoring Unit shall: 1) Pick-up batches of original copies of returns with corresponding Batch Control Summary (BCS) from accredited agent banks (AABs); 2) Check completeness of returns against those reflected in the BCS; If the documents are incomplete, note the discrepancy on the BCS and send back the batches of original returns to AAB branch; 3) Identify and segregate batches for selective Bank Branch Performance Check (BBPC); 4) Forward batches of returns that will not undergo the BBPC to Returns Processing Unit, Document Processing Section; 5) Prepare weekly report on Transmitted Documents (Annex A); 6) Perform BBPC on selected batches and record all errors other than R-007 (Payment on return differs with payment on screen) on the Bank Branch Performance Statistics Form 2841 (Annex B); attach form 2841 to the batch; 7) Verify uploaded payment data on screen against the reflected amount on returns/payment forms. If with discrepancy on the amount paid, tick error code R007 on BIR Form 2841; 8) Encode BIR Form 2841 with BCS procedural errors and Returns procedural errors on Collection Accountability Screen; 9) Write/stamp the word "ENCODED" or "VERIFIED" on the front page upper right hand side of the documents; 10) Receive from CONE - MDC generated 12.09 report; validate report and forward to Collection Division, Regional Office; 11) Receive from CONE - MDC the following generated reports and sort said reports by bank branch: a) Batch Exception Report, b) BCS Summary Report, and c) List of Late Batches; 12) Validate these reports; 13) Prepare and send to AAB preliminary notice of error and reports with photocopy of returns/BCS; 14) Prepare and forward to Collection Program Division, Collection Service the following reports: a) Monthly Batch Exception Report (Annex C) b) Monthly List of Late Batches Report (Annex D) c) Monthly Bank Performance Statistics - Returns Procedural Errors and BCS Procedural Errors (Annex E-1 and Annex E-2) 15) Forward documents to Returns Processing Unit, Document Processing Section; 16) Match weekly report on Transmitted Documents with the generated Transmitted Collection Data received from Computer Operations/Network Engineering (CONE)-MDC. If with discrepancy, coordinate with AAB; 17) Attend to inquiries of AABs regarding the procedural errors they have committed. B.2 The Collection Performance Unit shall: 1) Receive suspended returns/payments reports from Computer Operations Network and Engineering, MDC; cdll 2) Resolve suspended transactions on-line. 3) Maintain a record of received and resolved cases. C. Document Processing Section (DPS) C.1 The Returns Processing Unit shall: 1) Receive original copies of returns/BCS from Bank Monitoring Unit; 2) Sort and classify tax returns according to form type, by RDO; 3) Batch into 25s Forms 1702 and 1701 and 50s for the other forms; 4) Assign and indicate the document locator number (DLN) in every document by means of rubber stamp and sequential numbering machine reflecting the following ITS features: RDO Code - 3 digits Year of Return - 2 digits Month Filed - 2 digits Sequence Number - 6 digits 5) Segregate the following returns that will undergo Limited Version of Return Encoding and forward to Returns Encoding Unit: a) 1701 f) 1606 b) 1702 g) 2550M c) 1600 h) 2550Q d) 1601 i) 2551 e) 1603 6) Sub-classify original returns, including those received from ISOS Data Center, based on RMO 10-91 (i.e. refundable, break-even, etc.) and forward to concerned units for pre-audit; 7) Select/segregate returns for RDO investigation based on Audit Program and transmit to concerned offices. 8) Forward returns not selected for pre-audit/investigation to Assessment Division for safekeeping. dctai C.2 Returns Encoding Unit 1) Encode the general taxpayer data as follows: Taxpayer Identification Number (TIN) Return period Document Locator Number (DLN) Date filed 2) Encode specific information applying the Limited Version of Return Encoding as specified in Annex F; 3) Stamp/write the word "ENCODED" on the upper right hand side of the batch header form. 4) Prepare Weekly Production Report (Annex G) and Aging of Returns not yet Encoded (Annex H). Submit to MDC every 1 st working day of the following week; At the Makati Data Center , A. Office of the Head, MDC 1. Receive reports on Weekly Production and Aging of Returns Not yet Encoded from Document Processing Section - RDO. 2. Monitor production reports and act on issues/concerns of RDOs to maintain up-to-date processing of documents; 3. Ensure the availability of reports as required by NO, RO and/or RDOs. B. The Computer Operations/Network Engineering shall: 1. Receive payment data from AAB thru EDT transmission; 2. Upload payment data to the ITS database; 3. Generate regular and ad-hoc reports, including 12.09 report, needed by the NO, RO and /or the RDOs; 4. Forward generated reports to Bank Monitoring Unit, CS. 5. Attend to technical issues/concerns of RDOs. V. Safekeeping of Documents All returns forwarded to RDOs (i.e. 1998 annual income tax (IT) returns and 1999 business tax returns), including those turned over by the ISOS Data Center shall be stored at the Assessment Division, Revenue Region 8, Makati. All other returns shall be stored at the RDC Southern Luzon. Any RDO personnel requiring a copy of the returns shall request from the appropriate office. VI. Repealing Clause All issuances or portions thereof not consistent with the provisions of this Order are hereby repealed or amended accordingly. VII. Effectivity This Order takes effect immediately. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue ANNEX A TRANSMITTED DOCUMENTS TO DOCUMENT PROCESSING SECTION ANNEX B Bank Branch Performance Statistics ANNEX C MONTHLY BATCH EXCEPTION REPORT ANNEX D MONTHLY LIST OF LATE BATCHES ANNEX E-1 MONTHLY BANK PERFORMANCE STATISTICS ANNEX E-2 MONTHLY BANK PERFORMANCE STATISTICS ANNEX F-1 LIST OF FIELDS TO BE CAPTURED ANNEX G WEEKLY PRODUCTION REPORT ANNEX H AGING OF RETURNS NOT YET ENCODED