1. Country-Specific Features
  2. Philippines Help Topics
  3. Philippines Invoicing

Philippines Invoicing

Overview

To use the Philippines invoicing features, you need to install the Southeast Asia Localization SuiteApp.

The SuiteApp provides localized templates and custom fields necessary for doing business in the Philippines. These documents are preformatted to comply with BIR (Bureau of Internal Revenue) requirements and can be generated as PDF or HTML. With Philippines invoicing, you can generate documents for VAT-registered businesses using CAS (Computerized Accounting System) and preformatted forms for business with loose-leaf books of accounts.

The SuiteApp also includes features to generate and add the following information about Philippines document types:

Philippines invoicing templates are available for the supported document types listed in the following table.

Document Type

Transaction Form

Transaction Type

Billing Statement

Invoice

Services

Collection Receipt

Customer Payment

Goods

Credit memo

Credit Memo

Goods and Services

Official Receipt

Customer Payment

Services

Sales Invoice

Invoice

Goods
Important:

To create Philippines documents for sales invoice, billing statement, collection receipt, official receipt or credit memo, you must do the following:

If you don't complete these steps, you may encounter validation errors when working with Philippines documents.

BIR-Required Details

The following details appear in Philippines invoicing documents to comply with BIR:

Document Information

  • Document title

    • Principal — Sales Invoice

      In addition, the following appears on invoices:

      • The phrase “ZERO-RATED SALE” appears under the document title if all items in a transaction are subject to zero percent (0%) VAT.

      • The phrase “VAT-EXEMPT SALE” appears under the document title if all items in a transaction are exempt from VAT.

    • Supplementary — Billing Statement, Collection Receipt, Credit Memo, Official Receipt

  • Document number

  • Document issue date

Seller and Buyer Information

  • Registered Name

  • Registered Address

  • Registered Business Style

  • The phrase VAT REG TIN or NON-VAT REG TIN followed by the 9-digit Tax Identification Number (TIN) and the 5-digit Branch Code

Transaction Details

  • Date of transaction

  • Quantity of item

  • Description of the item or nature of services rendered

  • Unit cost

  • Total cost

  • VAT Amount

  • Tax Summary breakdown for mixed transactions:

    • VATable Sales

    • VAT Amount

    • VAT Exempt Sales

    • Zero-Rated Sales

    Note:

    Tax Summary no longer appears in collection receipts or official receipts because invoices are now the basis of output tax liability for sellers and input tax claims for buyers.

    Consequently, Tax Summary no longer appears in sales invoices with single type VAT transactions. Single type VAT transactions refer to transactions with line-items that are purely zero-rated or VAT-exempted.

  • Transaction Total Summary breakdown for mixed transactions:

    • Less: VAT

    • Amount: Net of VAT

    • Add: VAT

    Note:

    The system labels VAT-exempt invoices as “Total VAT-Exempt Sales” for single type VAT transactions.

  • Sales breakdown for non-VAT mixed transactions:

    • Exempt Sales

    • Sales Subject to Percentage Tax

Footer Details

  • PTU or ACCN and date issued

  • Document Series Range in use

  • The footer phrase "THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX" for supplementary documents

Discount Details

Control how discount details appear on printed documents using the Print Discount and Shipping Lines in Columns setting. To set the setting status, go to Setup > Company > Preferences > Printing & Fax, and click the Printing subtab. For more information, see Printing.

Depending on the option you select for the setting, your printed documents will show discounts in different ways. Here’s a quick comparison:

Setting Status

Items Section

Transaction Total Summary

Box checked

Shows discount names and details as extra line items

Does not show a separate Discount line

Box cleared

Does not show discount details as line items

Shows a Discount line with the total amount
Note:

The system alerts you if a transaction includes both withholding tax and line-item discounts, indicating that this combination can cause calculation errors. Adjust either the withholding tax or the discounts before saving. To apply a discount to items on a transaction, see Applying a Discount on a Sales Order.

You can create discount items for these customer types in the Philippines:

  • Senior Citizen

  • Person With Disability

  • National Athlete

  • Medal of Valor Recipient

  • Solo Parent

For instructions, see Creating Discount Items for Philippines Invoicing.

Payments and credit application details are also included in Philippines documents. If a transaction includes credits, deposits, or journals applied together with payments, the document also includes a Related Application Amounts table.

Related Topics

General Notices