BIR Accreditation - Customer Groups

BIR Accreditation - Customer Groups




In this article 

There are some very specific features that the retail pos application should have for it to be used by retailers in The Philippines. 


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. 


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. 





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



Please Note: 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




REF - How to Compute for Senior Citizen Discount in the Philippines? (mpm.ph)


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.


Suggested Readings

Tagrain - BIR (Bureau of Internal Revenue) Accreditation for The Philippines

BIR Accreditation - Global Settings

BIR Accreditation - Store and POS Settings

BIR Accreditation - Promotions

BIR Accreditation - Receipt Format



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