Prescribing the Policies, Guidelines and Procedures for Processing Payment Data from Accredited Agent Banks (AABs) Under Non-Computerized RDOs Using the Limited Bank Data Entry System (LBDES) Replacing the New Payment Control System (NPCS)

May 18, 1998 REVENUE MEMORANDUM ORDER NO. 42-98 TO : All Internal Revenue Officers and Employees Concerned SUBJECT : Prescribing the Policies, Guidelines and Procedures for Processing Payment Data from Accredited Agent Banks (AABs) Under Non-Computerized RDOs Using the Limited Bank Data Entry System (LBDES) Replacing the New Payment Control System (NPCS) I. Background The Bureau intends to achieve full computerization by year-end 2000. In this regard, a gradual nationwide shift from the New Payment Control System (NPCS) to the Limited Bank Data Entry System (LBDE) will be implemented starting June 1998. This will allow a smooth transition of the non-computerized RDOs into the Integrated Tax System (ITS). It will likewise prevent the projected impact of the Millennium Bug since LBDES is a year 2000-compliant system. II. Objectives This order is issued to: A. Complement and support the computerization thrust of the Bureau; B. Set the policies and provide guidelines for processing payment data from AABs using LBDES; dctai C. Establish the procedures for the gradual shift from NPCS data processing to LBDES; D. Address the year 2000 (Y2K)/millennium bug problem; and E. Ensure that all BIR information technology hardware and software are year 2000-compliant. III. Policies A. To prepare for the transition of the non-computerized RDOs into ITS, the existing NPCS data entry program will be replaced by LBDES. B. Between June and July, 1998, the modified LBDES program will be adopted by AABs under twenty-two (22) non-computerized Metro Manila RDOs ( Annex A ). Unlike the existing computerized RDOs whose AABs transmit data to the RDC through EDT (Electronic Data Transmission), the AABs servicing these additional RDOs shall initially transmit data to the RDC through diskettes. C. All data processing activities are scheduled to be fully absorbed into the ITS mainstream by the year 2000. By then, all legacy systems will be dropped and the Revenue Data Centers will handle all data processing requirements of the bureau. D. The Administrative Divisions of the Regional Offices concerned will assume custody and safekeeping of the LBDES documents transmitted by ISOS. They will likewise be responsible and accountable for taxpayer's requests for certifications of authenticity. E. There will be no change in the procedure of processing of returns, including preparation of the 1209 report, at the RDO. F. Upon roll-out of ITS in the RDO, offices concerned shall adopt, in place of the procedures outlined in this RMO, standard ITS procedures prescribed per ISG Memorandum dated October 6, 1997 (Prescribing the Guidelines and Procedures on the Use of Revenue Data Center (RDC) Operations Manual (OM) and Management Information Systems (MIS) Manual), Revenue Memorandum Order No. 64-97 dated October 7, 1997 and related documents. IV. Procedures A. The Receipt and Control Section of the Input and Control Division, Document Processing Department (DPD), Revenue Data Center shall: 1. Receive the original set of documents with diskette/s from the AAB-Branch. The original set of documents includes the original return, Batch Control Sheet (BCS) and BIR Form 2840 (External Media Transmittal Form, Annex B ). 2. Check the completeness of the documents received. If the documents are incomplete, 2a. Note the discrepancy on BIR Form 2840. 2b. Photocopy BIR Form 2840 and documents in question (return/s and/or BCS); attach photocopy of BIR Form 2840 to original documents submitted by AAB. 2c. Stamp documents submitted by AAB 'Received with discrepancy.' Retain the documents and resume processing once AAB has resolved discrepancy/ies noted on BIR Form 2840. 2d. Return original BIR Form 2840 and photocopy of documents in question to the concerned AAB-Branch. 3. Perform virus check on diskette/s received. If diskette/s is/are not clean, 3a. Note the discrepancy on BIR Form 2840. 3b. Photocopy BIR Form 2840 and attach photocopy to documents submitted by AAB. 3c. Stamp documents submitted by AAB 'Received with discrepancy.' Retain the documents and resume processing once AAB has submitted new diskette. 3d. Return original BIR Form 2840 together with the diskette/s to the concerned AAB-Branch. 4. Forward diskette/s to Computer Operations Network and Engineering (CONE) Department together with BIR Form 2840. 5. Forward BCS and returns to Administrative Department for temporary storage. B. Computer Operations Network and Engineering, Revenue Data Center (RDC) shall: 1. Receive diskette/s and BIR Form 2840 from DPD. 2. Perform version check and integrity check on diskettes received. If the diskettes did not pass version check and/or integrity check, note discrepancy on BIR Form 2840. Otherwise, upload data to unix/ITS. 3. Forward diskettes together with BIR Form 2840 and Payment Receipt Report to the Quality Assurance Department (QAD). 4. Generate reports such as List of Late Batches, Batch Exception Report, etc. C. System Administrator, Revenue Data Center shall archive the uploaded data after a retention period of ninety (90) days. D. Collection Agents Performance Division, Quality Assurance Department, Revenue Data Center shall: 1. Receive diskettes together with BIR Form 2840 and Payment Receipt Report from CONE. 2. Coordinate with AAB the resolution of discrepancy found during integrity check including penalty imposition. 3. Return diskette together with BIR Form 2840 and Payment Receipt Report to AAB. E. General Services and Archives Division, Administrative Department, Revenue Data Center shall: 1. Receive original return and BCS from DPD for temporary storage. 2. Forward original return and BCS to the Information Systems Operations Service, National Office, seven (7) days after receipt. F. Document Processing Group, Information Systems Operation Service (ISOS) shall: 1. Receive Original Return and BCS from Revenue Data Center (RDC). 2. Identify and segregate batches of documents for Bank Branch Performance Check. LLjur 3. Send batches that will not undergo the Bank Branch Performance Check to the concerned Regional Office. 4. Perform the Bank Branch Performance Check for selected batches: 4a. Check return and BCS for procedural errors other than error code R0007 (Payment on Return differs w/ Payment on Screen). 4b. Document errors in BIR Form 2841 (Bank Branch Performance Statistics, Annex C ). 4c. Initial BIR Form 2841 to indicate that batch has been checked. 4d. Verify uploaded amount against amount on return through the Collections and Bank Reconciliation (CBR) screen. If there is a discrepancy, tick error code R0007 on BIR Form 2841. 4e. Initial BIR Form 2841 to indicate that batch has been checked. 4f. If BIR Form 2841 has procedural errors, encode BIR Form 2841. Otherwise, send documents to concerned Regional Office for custody and safekeeping. 4g. Generate the Batch Exception Report. 4h. Photocopy erroneous return and/or BCS for attachment to the Batch Exception Report. 4i. Transmit photocopy of return and/or BCS with the Batch Exception Report to the Collection Programs Division for discrepancy resolution. 4j. Send Original Return and BCS to concerned Regional Office for custody and safekeeping after discrepancies have been resolved. G. Collection Programs Division, Collection Service shall: 1. Receive photocopy of return and/or BCS with the Batch Exception Report from the Document Processing Group, ISOS. LLpr 2. Coordinate resolution of discrepancies including penalty imposition with concerned AAB. 3. Update ISOS on the status of discrepancies coordinated with the AAB. H. Administrative Division, Regional Office shall: 1. Receive Original Return and BCS from ISOS. 2. Label and store documents for easy retrieval; ensure proper safekeeping and security measures. 3. Act on inquiries and requests for certifications of true copies of documents and such other requests for data of which they have custody. V. Repealing Clause All other issuances and/or portions thereof inconsistent herewith are hereby repealed and amended accordingly. VI. Effectivity This Order takes effect immediately. prLL LIWAYWAY VINZONS-CHATO Commissioner ANNEX A ANNEX B ANNEX C