5/22/2019
Philippines
Generated on: 2019-05-22
SAP ERP | 6.17.17
PUBLIC
Warning
This document has been generated from the SAP Help Portal and is an incomplete version of the official SAP product
documentation. The information included in custom documentation may not re ect the arrangement of topics in the SAP Help
Portal, and may be missing important aspects and/or correlations to other topics. For this reason, it is not for productive use.
For more information, please visit the SAP Help Portal.
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Philippines
Purpose
This country version is designed for use by businesses with operations in the Philippines. As well as the generic SAP System
functions, it comprises functions designed for laws and business practices particular to the Philippines.
This documentation explains how the country-speci c functions work and what Customizing settings are needed to implement
these country-speci c functions. It does not cover the generic functions, which are described in the rest of the SAP Library.
Features
Country-Speci c Functions
Most of the country-speci c functions for the Philippines relate to Financials and Human Resources. The main areas are as
follows:
Official receipt printing and management
Withholding tax reporting
Value-added tax reporting
Customer account statements
Functions for processing postdated checks
Realized gains or losses from foreign currency translation for partial payments
Localized version of the Payroll (PY) component, Payroll Philippines (PY-PH)
Cross-Application Document Numbering
Use
In the Philippines , a company’s head office and each of its branches are required to issue the following documents with
sequential numbering, in its own number range:
Invoices
Credit memos
Debit memos
Official receipts
The system enables you to do this by means of the business place . If your company does not have any branches, then you
con gure document numbering in the standard way at company code level.
Prerequisites
You have completed the Customizing activities for the business place (see link above), as well as those under Cross-Application
Components General Application Functions Cross-Application Document Numbering Philippines Document Numbering .
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Features
When you post one of the above documents, the system generates an official document numberand stores it in the Reference
(XBLNR) eld; this number does not replace the Sales and Distribution (SD) billing document number or the Financial
Accounting (FI) document number. The official document number can be printed as the invoice number and it can also be used
for reporting purposes.
The system generates a separate official document number for credit and debit memos (that is, not the same number as the
corresponding invoice), but it assigns a reversal document the same number as the reversed document.
Business Places
Use
In the Philippines , companies are required to register each of their branches with the Bureau of Internal Revenue (BIR). Each
branch is also assigned its own taxpayer identi cation number (TIN), and is responsible for issuing its own documents with its
own serial number range.
In the system, a company’s head office and each of its branches are represented by a business place. For more information
about the business place concept, see Local Taxation .
Note
If a company does not have any branches, then there is no need to establish business places in the system, since document
numbering is carried out on company code level.
Integration
The business place is used in the Philippines to assign official document numbers to outgoing documents. Each business place
maintains its own document number ranges, which must be unique within the company. Each document must contain an official
document number, the business place’s TIN and address, and the head office’s address.
The system automatically assigns original documents (billing documents or sales documents) to a business place, so that when
the system creates the appropriate accounting document, all line items are assigned to the correct business place too.
Activities
Customizing
In Customizing for General Settings , choose Set Countries De ne Countries , and make sure that the vehicle country key
forPhilippinesis set to RP.
You set up the business place in Customizing for Cross-Application Components , by completing all the activities under General
Application Functions Cross-Application Document Numbering Philippines Business Place . For each business place you
de ne, you need to enter its address and TIN .
Day-to-Day Activities
When you enter customer invoices in Financial Accounting (FI) and Sales and Distribution (SD), you specify the business place.
Follow the standard procedures for posting invoices in FI and SD .
When you print official receipts , you can select by business place.
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Note
Once you activate the business place, it can be entered in several system transactions. Although it is not required for all
transactions in the Philippines – such as for entry of incoming invoices in Materials Management (MM) – we recommend
that you do enter the business place. You can con gure the system so that it derives the business place automatically in
most cases.
Financials
General Information
Currency
De nition
See Currencies .
Use
When you create a company code using the template for the Philippines, the system sets the Philippine peso as the local
currency. The currency's ISO code is PHP.
Business Places
Use
In the Philippines , companies are required to register each of their branches with the Bureau of Internal Revenue (BIR). Each
branch is also assigned its own taxpayer identi cation number (TIN), and is responsible for issuing its own documents with its
own serial number range.
In the system, a company’s head office and each of its branches are represented by a business place. For more information
about the business place concept, see Local Taxation .
Note
If a company does not have any branches, then there is no need to establish business places in the system, since document
numbering is carried out on company code level.
Integration
The business place is used in the Philippines to assign official document numbers to outgoing documents. Each business place
maintains its own document number ranges, which must be unique within the company. Each document must contain an official
document number, the business place’s TIN and address, and the head office’s address.
The system automatically assigns original documents (billing documents or sales documents) to a business place, so that when
the system creates the appropriate accounting document, all line items are assigned to the correct business place too.
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Activities
Customizing
In Customizing for General Settings , choose Set Countries De ne Countries , and make sure that the vehicle country key
forPhilippinesis set to RP.
You set up the business place in Customizing for Cross-Application Components , by completing all the activities under General
Application Functions Cross-Application Document Numbering Philippines Business Place . For each business place you
de ne, you need to enter its address and TIN .
Day-to-Day Activities
When you enter customer invoices in Financial Accounting (FI) and Sales and Distribution (SD), you specify the business place.
Follow the standard procedures for posting invoices in FI and SD .
When you print official receipts , you can select by business place.
Note
Once you activate the business place, it can be entered in several system transactions. Although it is not required for all
transactions in the Philippines – such as for entry of incoming invoices in Materials Management (MM) – we recommend
that you do enter the business place. You can con gure the system so that it derives the business place automatically in
most cases.
Taxes
Taxpayer Identi cation Number
De nition
A number assigned to companies operating in the Philippines after they have registered with the Bureau of Internal Revenue
(BIR).
Use
Your own TIN has to be printed on most business documents issued by your company, such as official receipts or the valueadded tax (VAT) reports.
You maintain your customers' and vendors' TINs – required on official receipts, VAT reports, and withholding tax reports – in
their master records. In the Tax Number 1 eld, enter the TIN in the format 999-999-999-999V for customers and vendors
subject to VAT, or 999-999-999-999N for customers and vendors not subject to VAT.
For newly registered TINs with 15 digits, enter the TIN in the Tax Number 3 eld as the Tax Number 1 eld can only support 12
digits.
Note
The last character in the TIN, V or N, determines whether the transaction is subject to VAT, and it is printed accordingly on
the official receipt. However, in the transaction, you can overwrite this by specifying a VAT or non-VAT tax code.
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You maintain your own company's TIN in Customizing for Financial Accounting (FI), under Financial Accounting Global
Settings Company Code Enter Global Parameters . Enter the TIN in the ID number EXTRASTAT eld under Additional details.
Business Places
If you work with business places, then each of your business places is assigned a taxpayer identi cation number (TIN) .
When you create your business places in Customizing, you enter its TIN in the Tax Number 1 eld, on the Details screen. Note
that you must also create a business place for your head office, and you enter the same TIN as you enter in your FI global
settings.
 Example
Head office TIN: 123-456-789-000V; business place TIN: 123-456-789-012V
In most cases, the head office is identi ed by 000 in the last three digits of the TIN. The business place TIN typically has the
same rst nine digits as that of the head office, with the last three identifying its area – in this case, 012.
Tax on Sales/Purchases
De nition
See Taxes on Sales/Purchases, Sales Taxes, and Additional Taxes .
Use
In the Philippines, the main tax on sales and purchases is value-added tax (VAT). The standard rate of VAT is 10%.
When you create a company code using the template for the Philippines, the system automatically makes sample settings for
VAT.
Tax Code
De nition
See Tax Codes .
Use
For the Philippines, tax codes are not only important for calculating the correct tax amount, but they are also used for selecting
the correct transactions when you create value-added tax (VAT) reports .
When you create a company code using the template for the Philippines, the system sets up all tax codes required as follows:
Input VAT
Tax code
Tax rate (%)
I0
0
I1
10
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Output VAT
Tax code
Tax rate (%)
E0
0 (VAT-exempt)
O0
0 (zero-rated sale)
O1
10
In Customizing for Financial Accounting , you can de ne additional tax codes with additional tax details for each tax procedure.
To do so, choose Financial Accounting Global Settings Tax on Sales/Purchases Calculation De ne Tax Codes for Sales and
Purchases .
Calculation Procedure
De nition
See The Calculation Procedure .
Use
In the Philippines, you use calculation procedure TAXPH. It allows for all the Philippine tax codes supplied with the system (see
Tax Code ).
Value-Added Tax for Third-Party Vendors
Use
Some transactions related to indirect billing transactions require third-party vendor information to be displayed on the valueadded tax (VAT) report instead of the vendor master information that would normally be contained on the invoice.
 Example
A company employee takes a prospective customer to dinner. In this case, the employee pays the bill, including VAT. The
restaurant issues the official receipt to the employee. Now the employee wants to claim this expense from the company.
The company posts an invoice with the employee as the vendor. But because the employee did not issue the official receipt –
the restaurant did – when the company submits its VAT report to the tax authority, it should list the restaurant as the
vendor, not the employee. In this case, the restaurant is considered the third-party vendor.
Activities
There are two methods for posting a vendor invoice involving a third-party vendor, depending on whether the third-party vendor
already exists in your vendor master record. When you enter the invoice, you enter the third-party vendor information on the
Notes tab (which later appears as the long text to the Text eld of the line item) as follows:
For third-party vendors with master records
Enter the vendor number with a colon as a pre x, for example, :v-001 .
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The system then automatically retrieves the vendor information from the vendor master record and places it into the
following user elds:
1. Vendor name into User eld 1
Taxpayer identi cation number (TIN) of vendor into User eld 2
3. Vendor address line 1 into User eld 3
4. Postal code and city into User eld 4
For third-party vendors without master records
If the third-party vendor does not exist in your vendor master, then you must manually enter the required vendor
information. Enter the following data in the order speci ed below, with a semicolon at the end of each line. Each line is
limited to 50 characters.
1. Vendor name
2. TIN of vendor
3. Vendor address line 1
4. Postal code and city (separate postal code and city with one space – no comma)
 Example
Antonio's Bistro; 123-456-123-456V; 1000 Main Street ; 2211 Manila;
Note
You must enter the vendor data in the above order only – so that it is stored and transferred to the VAT report in the
same format as the data for third-party vendors with master records.
When you generate a VAT report that contains third-party vendors, note that you must modify your display variant to include
user elds. For more information, see VAT Reporting .
Advance Return for Tax on Sales/Purchases
(VAT Reporting)
Use
In the Philippines, companies are required to submit Bureau of Internal Revenue (BIR) forms 2550M for the monthly (valueadded tax) report and 2550Q for the quarterly VAT report. However, these forms also include information not provided by the
SAP System, such as advance payments. Using the Advance Return for Tax on Sales and Purchases report, you can print the
relevant VAT data and enter it in forms 2550M and 2550Q.
Integration
The report is based on the SAP List Viewer (ALV), which enables you to de ne your own display variants, according to the BIR
requirements listed below. For more information on display variants, see Layouts .
Activities
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To access the report, from the SAP Easy Access screen, choose Accounting Financial Accounting General
Ledger Reporting Tax Reports General Advance Return for Tax on Sales/Purchases Advance Return for Tax on
Sales/Purchases. You need to make the following settings, in addition to your speci c selection criteria:
Under
Set the following indicator(s)
Output control
Read address data
Output lists
Output tax: Line items
Input tax: Line items
You need to de ne your SAP List Viewer display variant to include the following data on the VAT report, as required by the BIR:
Reporting company's name and TIN
Vendor or customer name
Vendor or customer TIN
Vendor or customer address
Document date
Document number
Reference number
Invoice amount
VAT amount
Note
When you generate a VAT report that contains third-party vendors, you must enhance your display variant so that it contains
User eld 1 , User eld 2 , User eld 3 , and User eld 4 .
See also:
Advance Return for Tax on Sales and Purchases
Withholding Tax
Use
In the Philippines, you use the extended withholding tax functions. This allows you to post a withholding tax amount for a vendor
or customer either when you enter an invoice (accrual basis accounting) or when the invoice is paid (cash basis accounting). You
must choose one of these methods for posting withholding tax – according to your company's accounting policy – and then
adhere to that method of accounting.
Prerequisites
To be able to use extended withholding tax, you must de ne a number of Customizing settings for Financial Accounting :
Maintain withholding tax types
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Maintain withholding tax codes
Assign withholding tax types to company code
De ne G/L account codes for each withholding tax type and code combination
See also:
Extended Withholding Tax: Customizing
Withholding Tax Type
De nition
A category of withholding tax. SAP delivers withholding tax types for expanded withholding tax and nal tax , according to
Philippine requirements.
Use
When you create a company code using the template for the Philippines, the system sets up sample withholding tax types as
follows:
Withholding Tax Types for Invoice Posting
Tax type
Description
CI
Expanded withholding tax (customer invoice)
EI
Expanded withholding tax (vendor invoice)
FI
Final tax (invoice)
Withholding Tax Types for Payment Posting
Tax type
Description
CP
Expanded withholding tax (customer payment)
EP
Expanded withholding tax (vendor payment)
EV
Expanded VAT on sale to government entity
EX
Payees exempt from withholding tax
FP
Final tax (payment)
Depending on your company's method for posting withholding tax – either on an accrual basis (at invoice posting) or on a cash
basis (at payment posting) – you can maintain withholding tax types in Customizing for Financial Accounting , under Financial
Accounting Global Settings Withholding Tax Extended Withholding Tax Calculation Withholding Tax Type
De ne Withholding Tax Type for Invoice Posting
De ne Withholding Tax Type for Payment Posting
Withholding Tax Code
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De nition
See Withholding Tax Codes .
Use
When you create a company code using the template for the Philippines, the system sets up sample withholding tax codes – for
different income payments subject to creditable tax ( expanded withholding tax ), nal tax , expanded VAT on sale to
government entity, and payees exempt from withholding tax – as listed in the tables below.
Each withholding tax code corresponds to an official withholding tax key. These keys are used to categorize withholding tax
transactions into different natures of income payment (ATC code), as required by Philippine BIR form 1601 .
Expanded Withholding Tax
Withholding tax code
Description
Tax rate (%)
Official withholding tax key
1
Professional/talent fees paid to
5
C010
juridical persons
2
Rentals (corporations)
5
C100
3
Cinematographic lm rentals
5
C110
1
C120
5
C140
5
C141
0.5
C156
1
C157
1
C158
10
I010
(corporations)
4
Prime
contractors/subcontractors
(corporations)
5
Amounts paid to certain brokers
and agents (corporations)
6
Payments to medical
practitioners through a duly
registered professional
partnership
7
Payments made by credit card
companies to juridical persons
8
Payments made by government
offices on their local purchase of
goods from juridical persons
(corporations)
9
Income payments made by top
5000 corporations to their local
suppliers of goods
(corporations)
10
Professionals (lawyers, CPAs,
engineers, etc.)
11
Professional entertainers
10
I020
12
Professional athletes
10
I030
13
Movie, stage, radio, TV, and
10
I040
10
I050
musical directors
14
Management and technical
consultants
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15
Business and bookkeeping
10
I060
agents and agencies
16
Insurance agents and adjusters
10
I070
17
Other recipients of talent fees
10
I080
18
Fees of directors who are not
10
I090
employee of the company
19
Rentals (individuals)
5
I100
20
Cinematographic lm rentals
5
I110
1
I120
15
I130
5
I140
10
I151
10
I152
0.5
I156
1
I157
1
I158
15
I159
(individuals)
21
Prime
contractors/subcontractors
(individuals)
22
Income distribution to
bene ciaries of estates and
trusts
23
Amounts paid to customs, real
estates, insurance and
commercial brokers and agents
of professional entertainers
(individuals)
24
Payments to medical
practitioners through
hospitals/clinics
25
Payments to partners in general
professional partnership
26
Payments made by credit card
companies to individuals
27
Payments made by government
offices on their local purchase of
goods from juridical persons
(individuals)
28
Payments made by top 5000
corporations to their local
suppliers of goods (individuals)
29
Additional payments to
government personnel from
importers, shipping and airline
companies or their agents (for
overtime services)
Final Tax
Withholding tax code
Description
Tax rate (%)
Official withholding tax key
1
Interest on foreign loans
20
C180
10
C190
payable to non-resident foreign
corporations (NRFCs)
2
Interest and other income
payments on foreign currency
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transactions/loans payable to
offshore banking units
(OBUs)/foreign currency
deposit units (FCDUs)
3
Cash dividend payments by
10
I202
10
I203
32
C212
32
C213
15
C222
15
C223
20
I224
20
I225
20
I226
domestic corporations to
citizens and resident aliens
4
Property dividend payments by
domestic corporations to
citizens and resident aliens
5
Cash dividend payments by
domestic corporations to
NRFCs
6
Property dividend payments by
domestic corporations to
NRFCs
7
Cash dividend payments by
domestic corporations to
NRFCs whose countries allowed
tax deemed paid credit (subject
to tax sparing rule)
8
Property dividend payments by
domestic corporations to
NRFCs whose countries allowed
tax deemed paid credit (subject
to tax sparing rule)
9
Cash dividend payments by
domestic corporations to nonresident aliens engaged in trade
or business within the
Philippines (NRAETBs)
10
Property dividend payments by
domestic corporations to
NRAETBs
11
Share to NRAETB in the
distributable net income after
tax of a partnership (except
GPP), an association, a joint
account/venture taxable as a
corporation of which he is a
partner/member/co-venturer
12
On other payments to NRFCs
32
C230
13
Distributive share of individual
10
I240
20
I250
20
C250
partners in a taxable
partnership, etc.
14
Other royalty payments to
citizens, resident aliens and
NRAETBs (other than I380 and
I341)
15
All kinds of royalty payments to
domestic and resident foreign
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corporations
16
On prizes exceeding P10,000
20
I260
15
C280
4.5
C290
7.5
C300
15
I320
25
I330
25
C340
25
I341
10
I380
and other winnings paid to
individuals
17
Branch pro t remittances by all
corporations except
PEZA/SBMA/CDA registered
18
On gross rentals/lease/charter
fees payable to non-resident
lessors of foreign vessels
19
On gross rentals/charter and
other fees payable to nonresident lessors of aircraft,
machinery and other equipment
20
On payments to alien
individuals engaged by OBUs,
foreign petroleum service
contractors & subcontractors,
and by regional or area
headquarters and regional
operating headquarters of
multinational companies,
including any of its Filipino
employees occupying the same
position
21
On payments to non-resident
aliens not engaged in trade or
business (NRANETBs)
22
On payments to non-resident
foreign corporate
cinematographic lm owners,
lessors or distributors
23
On payments to NRAETBs for
cinematographic lms and
similar works
24
On royalties paid to citizens,
resident aliens and NRAETBs on
books, other literary works and
musical composition
Expanded VAT on Sale to Government Entity
Withholding tax code
Description
Tax rate (%)
Official withholding tax key
3
Expanded VAT withheld by
3
EVAT
government entity
Exempt from Withholding Tax
Withholding tax code
Description
Tax rate (%)
Official withholding tax key
1
Payees exempt from
0
EX01
withholding tax
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Note
If you create your own withholding tax type and code for payees exempt from withholding tax, make sure you assign it the
official withholding tax key EX01.
Treaty rates
If a treaty agreement exists between the Philippines and another country regarding a different rate of withholding tax, you can
maintain these rates directly in Customizing for Financial Accounting . First, for these formulas to be used in the withholding
tax calculation, you must set the W.tax form. (Calculate withholding tax according to formula) indicator when you de ne the
withholding tax codes (menu path listed above). Then, you can maintain the rates under Financial Accounting Global
Settings Withholding Tax Extended Withholding Tax Calculation Withholding Tax Codes De ne Formulas for Calculating
Withholding Tax.
Note
In the case of scaled tax rates for treaty withholding tax rates, note that the withholding tax reporting tool can only display
the rst bracket of the rate table.
Generic Withholding Tax Reporting
Use
You use the Generic Withholding Tax Reporting tool to generate withholding tax data for withholding tax reports submitted to
the Philippine Bureau of Internal Revenue (BIR) and vendor certi cates, as follows:
BIR form 1601 – Monthly Remittance Return of Income Taxes Withheld
BIR form 2307 – Certi cate of Creditable Tax Withheld at Source
BIR form 1604 – Annual Information Return of Income Tax Withheld on Compensation, Expanded and Final Withholding
Taxes
Features
SAP delivers standard report variants and Smart Forms for each of the reports and the certi cate, which are listed below.
SAP also provides a display variant for the output lists , 1SAP, which you can specify under Output control and lists in the Display
variant column.
BIR 1601
SAP provides withholding tax data for page 3 of the form. The form comprises three sections – expanded withholding tax, nal
tax based on the regular rate, and nal tax based on treaty rates. Within each of these sections, the data is summarized
according to the nature of the income payment (ATC code). For more information, see Withholding Tax Code .
The prede ned report variant for BIR 1601 is SAP&PH_1601, and the Smart Form is IDWTCERT_PH_1601.
BIR 2307
The prede ned report variant for BIR 2307 is SAP&PH_2307, and the Smart Form is IDWTCERT_PH_2307.
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BIR 1604
You use BIR form 1604 to report expanded and nal withholding tax for all nonemployee transactions.
SAP provides the three required sections of form 1604: alphalists 3, 4 and 5 (schedules):
Section of BIR 1604
Description
Prede ned report variant
Smart Form
Alphalist 3
Payees subject to expanded
SAP&PH_1604-3
IDWTCERT_PH_1604_SCHEDULE3
SAP&PH_1604-4
IDWTCERT_PH_1604_SCHEDULE4
SAP&PH_1604_5
IDWTCERT_PH_1604_SCHEDULE5
withholding tax
Alphalist 4
Payees subject to nal
withholding tax
Alphalist 5
Other payees whose income
payments are exempt from
withholding tax issued but
subject to income tax
Prerequisites
For each withholding tax report, note the required Customizing settings for the corresponding output group.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting Financial Accounting Accounts
Receivable Withholding Tax Generic Withholding Tax Reporting .
Customizing Output Groups
Use
See De ne Output Groups .
Procedure
To maintain withholding tax reporting output groups, in Customizing for Financial Accounting choose Financial Accounting
Global Settings Withholding Tax Extended Withholding Tax Generic Withholding Tax Reporting De ne Output Groups .
SAP delivers the following output groups for each of the Bureau of Internal Revenue (BIR) withholding tax forms:
Form
Output group
1601
PH1
2307
PH2
1604
PH3 (alphalist 3)
PH4 (alphalist 4)
PH5 (alphalist 5)
Depending on your company's method of accounting, you con gure the above output groups as follows:
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Time of withholding tax posting
Entry in the Reported doc. eld for the withholding tax reporting
output group listed in the above table
Invoice entry (accrual basis)
Vendor invoices, credit memos, and open down payments
Payment posting (cash basis)
Vendor payments (down, partial, and clearing payments)
Note
If you choose Vendor documents (according to W.T. posting time) as the reported document, then when you execute the
withholding tax reports, the system checks for both invoices and payments, which detracts from system performance. For
this reason, we recommend that you select only one of the above settings.
Accounts Payable and Accounts Receivable
Customer Master Records
Taxpayer Identi cation Number
De nition
A number assigned to companies operating in the Philippines after they have registered with the Bureau of Internal Revenue
(BIR).
Use
Your own TIN has to be printed on most business documents issued by your company, such as official receipts or the valueadded tax (VAT) reports.
You maintain your customers' and vendors' TINs – required on official receipts, VAT reports, and withholding tax reports – in
their master records. In the Tax Number 1 eld, enter the TIN in the format 999-999-999-999V for customers and vendors
subject to VAT, or 999-999-999-999N for customers and vendors not subject to VAT.
For newly registered TINs with 15 digits, enter the TIN in the Tax Number 3 eld as the Tax Number 1 eld can only support 12
digits.
Note
The last character in the TIN, V or N, determines whether the transaction is subject to VAT, and it is printed accordingly on
the official receipt. However, in the transaction, you can overwrite this by specifying a VAT or non-VAT tax code.
You maintain your own company's TIN in Customizing for Financial Accounting (FI), under Financial Accounting Global
Settings Company Code Enter Global Parameters . Enter the TIN in the ID number EXTRASTAT eld under Additional details.
Business Places
If you work with business places, then each of your business places is assigned a taxpayer identi cation number (TIN) .
When you create your business places in Customizing, you enter its TIN in the Tax Number 1 eld, on the Details screen. Note
that you must also create a business place for your head office, and you enter the same TIN as you enter in your FI global
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settings.
 Example
Head office TIN: 123-456-789-000V; business place TIN: 123-456-789-012V
In most cases, the head office is identi ed by 000 in the last three digits of the TIN. The business place TIN typically has the
same rst nine digits as that of the head office, with the last three identifying its area – in this case, 012.
Vendor Master Records
Taxpayer Identi cation Number
De nition
A number assigned to companies operating in the Philippines after they have registered with the Bureau of Internal Revenue
(BIR).
Use
Your own TIN has to be printed on most business documents issued by your company, such as official receipts or the valueadded tax (VAT) reports.
You maintain your customers' and vendors' TINs – required on official receipts, VAT reports, and withholding tax reports – in
their master records. In the Tax Number 1 eld, enter the TIN in the format 999-999-999-999V for customers and vendors
subject to VAT, or 999-999-999-999N for customers and vendors not subject to VAT.
For newly registered TINs with 15 digits, enter the TIN in the Tax Number 3 eld as the Tax Number 1 eld can only support 12
digits.
Note
The last character in the TIN, V or N, determines whether the transaction is subject to VAT, and it is printed accordingly on
the official receipt. However, in the transaction, you can overwrite this by specifying a VAT or non-VAT tax code.
You maintain your own company's TIN in Customizing for Financial Accounting (FI), under Financial Accounting Global
Settings Company Code Enter Global Parameters . Enter the TIN in the ID number EXTRASTAT eld under Additional details.
Business Places
If you work with business places, then each of your business places is assigned a taxpayer identi cation number (TIN) .
When you create your business places in Customizing, you enter its TIN in the Tax Number 1 eld, on the Details screen. Note
that you must also create a business place for your head office, and you enter the same TIN as you enter in your FI global
settings.
 Example
Head office TIN: 123-456-789-000V; business place TIN: 123-456-789-012V
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In most cases, the head office is identi ed by 000 in the last three digits of the TIN. The business place TIN typically has the
same rst nine digits as that of the head office, with the last three identifying its area – in this case, 012.
Payment Transactions
Postdated Check
De nition
See postdated check .
For Customizing information, see Customizing Postdated Checks .
Integration
Postdated checks are processed using the bill of exchange functions (see Check/Bill of Exchange in Accounts Receivable ).
Processing Postdated Checks
When you enter an incoming postdated check (PDC), you use the new payment method you have de ned for PDCs.
Posting Incoming Payments with PDC from Customer
From the SAP Easy Access screen, choose Accounting Financial Accounting Accounts Receivable Document Entry Bill of
Exchange Payment .
When you post this payment and link it to the appropriate open item for the customer (via Process open items ), the system
automatically credits the reconciliation account from the customer master record. However, instead of debiting the G/L
account for "bank" or "cash in bank" as it would with a normal incoming payment, the system debits the special G/L account for
PDCs. The posting could look like this:
 Example
(Debit) 09x Customer account (PDC receivable; x represents special G/L indicator)
(Credit) 15 Customer account (reconciliation account - trade receivable)
After you post the payment and display the customer line items, you see that the invoice has been cleared with the PDC
receivable and one open item has been created for the PDC.
Listing Mature PDCs Each Day
Each day your company can monitor the status of PDCs that have been received, and check if there are some checks that
mature on the particular day. To do so, from the SAP Easy Access screen choose Accounting Financial Accounting Accounts
Receivable Information System Account Bill of Exchange List.
Cashing PDCs
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When mature checks have been cashed, you can execute either the incoming payment (for individual PDC) or the automatic
incoming payment program (for batch PDCs) to credit the PDC account and debit the cash, bank account, or bank clearing
account – depending on your company's accounting procedure.
Processing Returned or Bounced PDCs
When your bank informs you that your customer's check cannot be cashed or that it bounced, the system supports the following
options, depending on your company's requirements. You can either reset the cleared items and reverse all documents back to
the original invoice; this helps you to monitor overdue items. Or, you can post another entry to debit the accounts receivable
open item and credit the bounced check.
Realized Gains and Losses on Partial
Payments and Down Payments
Use
When you post a partial payment against an invoice and the exchange rate is different from that at the time of invoicing, the
system automatically determines realized gains or losses incurred.
Activities
To allow currency exchange gains or losses to be realized for partial payments, in Customizing for Financial Accounting :
1. Choose Financial Accounting Global Settings Document Document Header Indicate Currency Differences for Partial
Payments.
2. Set the E/rte dif.pt py (Exchange rate diffs partial payments by period) indicator for the relevant document type.
For more information, see Indicate Currency Differences for Partial Payments .
Correspondence
You can generate the following types of correspondence for the Philippines:
Official receipt
Customer account statement
Official Receipt
De nition
See official receipt .
Structure
The official receipt contains the following information:
Name, address, and taxpayer identi cation number (TIN) of issuing company
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If the base document contains a business place , then the official receipt contains the address of the head office, and TIN
and address of the business place.
Name, address, and TIN of customer
Date of collection
Amount in numbers and words (English only)
Official receipt number
The term Official Receipt
Invoice number(s)
Integration
You can:
Number official receipts
Print official receipts
Maintain status of official receipts
Official Receipt Numbering
Use
Official receipt numbering is similar to check lot numbering in the system.
Activities
You con gure official receipt numbering in Customizing for Cross-Application Components, under General Application
Functions Cross-Application Document Numbering Philippines Document Numbering Official Receipt
Create Receipt Lots and Assign to Business Places
Leave the business place blank if you do not use it.
Create Number Range Groups and Assign to Receipt Lots
Printing Official Receipts
Official receipts are printed on preprinted forms. SAP delivers the following sample SAPscript forms:
F140_INT_PHIL_01 for printout of official receipt before payment
F140_PAY_CON_PH1 for printout of official receipt after payment
You can modify these SAPscript forms to t into your company's preprinted forms. To do so, from the SAP Easy Access screen,
choose Tools → Form printout → SAPscript → Form , copy, and change the form.
Printing Official Receipts Before Payment (Based on Invoice)
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To print official receipts based on invoice information in the case that a third party collects payment on behalf of your company:
From the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Receivable → Reporting →
Philippines → Printout of official receipts before payment ( Philippines )
Enter the following data:
Internal document sorting:B1
Company code
Business place (if required)
Document number
Correspondence:SAPP2
Official receipt lot number (in the Lot eld)
Choose
.
Printing Temporary Receipts
If your company needs to issue temporary receipts, for example, against a postdated check , you can use the Printout of official
receipt before payment report (described above). However, note the following differences for temporary receipts:
You must enter a different lot number for the temporary receipt than you enter for the official receipt.
If you use a different format than that of the official receipt, you must con gure a new SAPscript form, and assign it to the
RFKORDP2 program in Customizing for Financial Accounting , under Financial Accounting Global Settings → Correspondence
→ De ne Form Names for Correspondence Print .
Printing Official Receipts after Payment (Based on Payment)
To print official receipts based on payment documents:
From the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Receivable → Reporting →
Philippines → Printout of official receipts after payment (Philippines) .
Enter the following data:
Internal document sorting:B1
Company code
Business place (if required)
Document number
Correspondence:SAPP1
Official receipt lot number (in the Lot number eld)
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If your customer has both value-added tax (VAT) and non-VAT transactions, you must set the Active indicator (under Division
into VAT and NON VAT ) and specify the VAT tax code in the VAT tax codes eld. The system automatically summarizes
transactions with and without VAT, and lists them accordingly on the official receipt.
Choose
.
Changing Status of Official Receipts
Use
You use this report to change the status of official receipts. You would do this, for example, in the case of a printing error.
Integration
The original official receipts are created using the following reports:
Printout of official receipts after payment
Printout of official receipts before payment
Activities
To change the status of issued official receipts, from the SAP Easy Access screen choose Accounting Financial
Accounting Accounts Receivable Reporting Philippines Change status of official receipts .
Select the official receipts whose status you want to change, and choose Change status .
The following official receipt statuses are available:
Status
Description
01
Valid
02
Void
03
Canceled
04
Printing problem
If you assign a status other than 01 to an official receipt, the system allows you to reprint it.
Customer Account Statement
De nition
Type of correspondence that your company sends to its customers.
The system includes a SAPscript form that you can use for customer account statements for the Philippines, form
F140_CUS_STAT_P1. You can modify this template to meet your company's requirements. To do so, from the SAP Easy Access
screen, choose Tools Form printout SAPscript Form .
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Structure
The following information is displayed in the template for the customer account statement:
Account balance at the start of the selected period
Open item list as of the key date, including the total
It is sorted by transactions with or without special G/L indicators, currency, posting date, and document number.
Account balance at the end of the selected period
Cleared item list between selected key dates
It is sorted by currency, posting date, and cleared item document number.
Withholding tax list between selected key dates
It is sorted by withholding tax type, posting date, and document number.
Aging in 0, 30, 60, 90, and 120 days
Integration
You can print the customer account statement.
Note the following restrictions regarding customer statements:
You cannot create statements for one-time customers.
In the case of customer head offices with local branches, customer statements contain the address of the head office
and not that of the branch.
See also:
Correspondence Types
Printing Customer Account Statements
Use
Printing of customer account statements is based on correspondence type SAPP3. Correspondence type SAPP3 is
precon gured to run the RFKORDP3 print program, which is delivered with report variant SAP&SAPP3. You can modify
SAP&SAPP3 to meet your company's needs. For example, you can change the aging period and the number of the aging
column.
To modify or de ne a new report variant for the RFKORDP3 print program, in Customizing for Financial Accounting , choose
Financial Accounting Global Settings Correspondence Assign Programs for Correspondence Types . Select correspondence
type SAPP3 and choose Environment Maintain variants .
Procedure
Printing Individual Account Statements
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1. Request correspondence type SAPP3 . To do so, from the SAP Easy Access screen, choose Accounting Financial
Accounting Accounts Receivable Account Correspondence Request .
2. Issue the correspondence request by choosing Accounting Financial Accounting Accounts Receivable Periodic
processing Print correspondence As per request .
3. Print the customer account statement from the spool le by choosing System Own spool requests . Select your spool
request and choose
. For information on the SAP spool system, see BC - SAP Printing Guide .
Printing Mass Account Statements
1. From the SAP Easy Access screen, choose System Services Reporting .
2. Run the RFKORDP3 print program with report variant SAP&SAPP3.
Bank Accounting
Postdated Check
De nition
See postdated check .
For Customizing information, see Customizing Postdated Checks .
Integration
Postdated checks are processed using the bill of exchange functions (see Check/Bill of Exchange in Accounts Receivable ).
Customizing Postdated Checks
To post an incoming payment with a postdated check (see Processing Postdated Checks ), you must rst carry out the following
Customizing activities:
De ne Special G/L Indicators
De ne Payment Method
De ning Special G/L Indicators
As part of customizing postdated checks (PDC), you must de ne a special G/L indicator. This indicator identi es a special G/L
reconciliation account (for example, PDC receivable) that replaces the normal reconciliation account. When you then post an
incoming payment with a PDC, the system posts the entry to this special G/L reconciliation account instead of to the normal
receivables account.
To create a new special G/L indicator, in Customizing for Financial Accounting , choose Bank Accounting Business
Transactions Bill of Exchange Transactions Bill of Exchange Receivable Post Bill of Exchange Receivable De ne Alternative
Reconcil.Acct for Bills/Exch.Receivable .
Maintain the following information:
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Rel.to credit limit (Take into account for credit limit?)
Set this indicator according to your company's policy.
De ne descriptions for debit and credit posting keys
 Example
Debit 09 : PDC receivable
Credit 19 : Reverse PDC receivable
Choose Accounts and assign the special G/L account (for example, PDC receivable) to the normal reconciliation
account.
De ning Payment Method
You can de ne a new payment method which can then be used when entering an incoming postdated check (PDC) (see
Processing Postdated Checks ). To do so, specify the information listed in the Customizing activities below.
In Customizing for Financial Accounting , choose Accounts Receivable and Accounts Payable Business Transactions Incoming
Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program , and then choose the
activities listed below.
1. Set Up All Company Codes for Payment Transactions .
2. To use the automatic incoming payment program for cashing your PDC, you need to specify that the payment program
credits the special G/L indicator you de ned in De ning Special G/L Indicators . To do so, enter your special G/L
indicator under Customers , in the Sp. G/L transactions to be paid eld.
3. Set Up Payment Methods per Country for Payment Transactions
4.
a. Under Payment method classi cation , select Bill/ex (Create a bill of exchange posting) and set the Create
bill/exch. before due date indicator.
b. Under Posting details , ll out the Document type for payment and Clearing document type elds, and enter your
special G/L indicator in the Sp.G/L ind. b/ex. / b/ex.pmnt req. eld (Special G/L indicator for bill of exchange/bill
of exchange payment required).
5. Set Up Payment Methods per Company Code for Payment Transactions
6. Under Amount limits enter a minimum and a maximum amount for payments.
7. Set Up Bank Determination for Payment Transactions
Under Bank Accounts , for each house bank you enter, specify the payment method you de ned for PDCs in step 2 and the
currency.
For more information on de ning payment methods, see:
Country-Speci c De nitions for the Payment Method
Company Code Speci cations for the Payment Method
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Logistics
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