BIR Accreditation - Customer Groups
In this article we will cover the following: -- The Senior Citizen (SC) and Persons With Disability (PWD) customer groups -- The Senior Citizen Discount Promotion and the Persons With Disability Discount Promotion. types. These special customer groups and promotion types are created automatically to ensure that a specific discount of 20% is applied to all senior citizen customers and persons with disability customers on the total bill / invoice value, when such a customer is selected on the POS terminal. |
Introduction
BIR (Bureau of Internal Revenue) in the Philippines is the statutory body that certifies retail POS applications that can be used in the country. This government agency not only certifies POS applications but is also responsible for collecting internal revenue taxes and enforcing fines and penalties associated with them. You will be able to carry out your retail operations in the Philippines, only when your POS solution is BIR accredited. See: www.bir.gov.ph
There are some very specific features that a retail POS application must possess to qualify for being used by retailers in The Philippines.
When you create a new tenant, on the Tenant Registration Page there is a specific section that prompts you to select the Country and the Trading Currency. You need to select the Philippines as your country and Philippine Peso as your currency.
The BIR (Bureau of Internal Revenue) features are country specific and are applicable only in the Philippines. This means that these country specific features are activated only when you select the Philippines as your country and Philippine Peso as your currency.
Customer Groups
As mentioned earlier in the article, all Senior Citizens (SC) customers and Person With Disability (PWD) customers must be given a discount of 20% on the purchases made. To achieve this you can make use of the Senior Citizens (SC) customer group and the Person With Disability (PWD) customer group.
When you flip the Enable BIR switch ON, the following customers are created and mapped to the respective customer groups -
-- PWD Citizen (mapped to the the PWD Citizen Customer Group)
-- Senior Citizen (mapped to the the Senior Citizen Customer Group)
Discount applicable to Senior Citizens (SC) and Person With Disability (PWD) customers is configured using Spend X | Save an Amount promotion.
Additional Customer Groups can be created from the Create Customer Group screen. Navigate to: Home > Customer > Customer Group to reach the Create Customer Group screen. For more information on how to create Customer Groups in Tagrain, please refer to the article on Customer Groups
Every customer in the Philippines who is a Senior Citizen (SC) customer or a Persons With Disability (PWD) customer, is alloted a unique number.
When you select a Senior Citizen (SC) customer or a Persons With Disability (PWD) customer at the POS you must specify that unique number.
If you don’t specify that unique number, the application will not let you proceed to the payment screen and complete the transaction.
Spend X | Save an Amount
Tagrain, which is a BIR accredited POS solution, allows you to offer a specific percentage discount (at the transaction level) to Senior Citizens (SC) and Persons With Disability (PWD) using the Spend X | Save an amount, Promotion.
When you flip the Enable BIR switch ON, the Offers, Discounts and Pricing Management plugin is activated and the following Promotions are automatically created:
-- PWD Citizen Discount
-- Senior Citizen Discount
BIR accreditation requires that all the Senior Citizens (SC) customers and Person With Disability (PWD) customers must be given a discount of 20% on the purchases made. This discount is offered using the PWD Citizen Discount Promotion and the Senior Citizen Discount Promotion.
In the context of BIR, we will cover the steps to define and configure the Spend X | Save an Amount promotion.
Navigate to Home > Inventory > Promotions to open the Promotion List View Screen.
Click the Add Promotion button to open the Create Promotion Screen.
Select the Promotion Type as Spend X | Save an amount.
Specify a description for the Spend X | Save an amount promotion. For Example, you can specify Senior Citizen Discount 20% as your description.
Use the calendar icon to specify a date range you want this promotion to run at your store(s) and mark the promotion as active.
Flip the Is Active switch to ON to mark the promotion - Spend X | Save an amount as active. Inactive promotions do not apply on the POS terminal.
Select the store(s) where you want this Spend X | Save an amount promotion to run.
By default, a Promotion is applicable on all the stores
Specify the Customer Group on which this promotion would be applicable. For Example, you can specify Senior Citizen Customer Group. Specifying promotion to a customer group ensures that the promotion is applied only to those customers who are a part of that customer group.
Specify the Discount Type that would be applicable to the Customer Group selected in the previous step. For Example, you can specify Senior Citizen Discount.
The Discount Type field is enabled only when you have enabled BIR on the Global Settings page. This field allows you to offer specific promotional discounts to Senior Citizen (SC) and Person With Disability (PWD) customers.
You can select Senior Citizen (SC) Customer Group or Person With Disability (PWD) Customer Group from the Customer Group drop-down only if you have defined them. See: BIR Accreditation - Customer Groups
Flip the All Products switch to ON to ensure that the Spend X | Save an amount promotion applies to all the products in your store.
Specify the Amount to Spend as 1 in the Value field. Your customer would qualify for this promotion when he spends 1 Philippine peso or more.
Specify 20% as the Save percentage. This is the % that your customer would save i.e get as a discount.
The screenshot below depicts the configuration screen of a Spend X | Save an amount, Promotion.
The PWD Citizen Discount and the Senior Citizen Discount is applied automatically when such a customer is selected on the POS terminal.
The screenshot below depicts a Senior Citizen (SC) Discount applied on the Web Register using the Senior Citizen Discount Promotion.
Sale Transaction Receipt
A sale transaction receipt is printed at the end of every sale / sale refund transaction. The receipt for a transaction where a Senior Citizen promotional discount was applied would be like the screenshot below.
Steps to compute amount billable to a SC / PWD customer
Determine the amount of VAT Exempt Sale
A senior citizen / person with disability is exempted from paying Value-Added Tax (VAT). As such, you need to deduct the amount of VAT from the selling price. Here’s how to compute the VAT Exempt Sales to senior citizen:
Selling Price: P1,00.00
VAT Rate: 12%
Formula:
VAT Exempt Sales = Selling Price ÷ 1.12
Computation:
P1,00.00 ÷ 1.12 = P89.29
This is applicable only when your company is VAT-registered. You can skip this step if your company is NOT VAT registered. In that scenario the whole selling price is considered a VAT exempt sale.
Deduct the 20% discount
The 20% senior citizen discount OR person with disability discount will be computed from the VAT Exempt Sale. Here’s how to compute for the discount:
Formula:
Senior Citizen / Person With Disability Discount = VAT Exempt Sale x 20%
Computation:
P892.86 x 0.20 = P17.86
Compute the billable amount
Once you’ve calculated the VAT Exempt Sale and the senior citizen / person with disability discount, you now need to calculate the amount billable or collectible to senior citizen / person with disability customers. Here’s how:
Formula:
Amount Collectible = VAT Exempt Sale – Senior Citizen / Person With Disability Discount
Computation:
P89.29 – P17.86 = P71.43
Conclusion
In this article we have explained how to manage and configure the BIR specific settings related to Customer Groups and Promotions. You will be able to carry out your retail operations in the Philippines, only when you implement these settings in your POS solution after it is BIR accredited.
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