RMO No. 29-2002: Prescribes the revised procedures in the processing and approval of applications for permit to adopt Computerized Accounting System (CAS) or components thereof

Key points

1. Who applies and what counts as CAS. All taxpayers in business with a CAS or its components apply for a permit before use. Components are: general journal and subsidiary records except general ledger; sales, purchases, receivable, payable, inventory and payroll ledgers and other accounting records; any application system generating subsidiary ledgers; any system generating BIR-required reports; and a Point of Sale or Cash Register machine connected through a network or linked to CAS.
2. Where to file. The head office files all applications, for head office or branches, at the Large Taxpayers Assistance Division (LTAD) I or II, Large Taxpayers District Office or Revenue District Office having jurisdiction over it, except in cases specified in the Order. Affiliated companies, sister companies, franchisees and closely held corporations, including those whose CAS comes from consultants, secure separate permits.
3. E-invoicing, outsourcing and receipts. Applicants for an e-invoicing system apply for a complete CAS, provided the system can generate a hard copy of the invoice anytime. Taxpayers with outsourced CAS keep copies of their books and records at their place of business. Applicants without computer generated receipts and invoices apply for an Authority to Print (ATP).
4. Temporary permits and stickers. No temporary permit is issued except with approval of the Deputy Commissioner for Operations Group, and only for valid and meritorious cases. Stickers for CRM/POS machines linked to CAS for branches are issued by the BIR office over the branch, upon presentation and a copy of the Branch Permit.
5. Sales book and downtime. Taxpayers with approved CAS capable of generating reports such as daily and accumulated sales need not keep a manual CRM Sales Book if the required information appears in the computerized reports, which must be available during post system evaluation or authorized tax audit. During downtime, taxpayers whose system has no redundancy or automatic switchover may issue manual receipts.
6. System enhancements. A change in systems release or version number requires a new permit. If a taxpayer uses an enhanced system without BIR approval, the original permit is deemed automatically revoked from the time the enhanced system is adopted.

Who is affected

• Taxpayers engaged in business with a CAS or components
• Affiliated companies, sister companies, franchisees and closely held corporations
• Taxpayers applying for e-invoicing systems

Deadlines and effectivity

• Permit required before use of CAS