COA clarifies when to require or use Reimbursement Expense Receipt (RER), Official Receipt (OR), Acknowledgement Receipt (A/R), and Certification of Expenses Not Requiring Receipt (CENRR)

The Commission on Audit (COA) clarifies in one of its latest guidelines, particularly COA Circular No. 2021-001, the instances when to use or require Reimbursement Expense Receipt (RER), Official Receipt (OR) / Sales Invoice, or Certification of Expenses not requiring Receipts, as supporting document to a financial transaction.

Previous COA Circulars already explains the use of each financial documents, however, some public financial management practitioners are still confused as to the use of each document and when to require each one to support financial expenses.

Thus, the COA issued a supplementary guidelines to clarify the use of each financial document.

When to use or require a Reimbursement Expense Receipt (RER)?

Use or require a Reimbursement Expense Receipt (RER) for disbursements amounting to more than P300.00 but not exceeding P1,000.00 covering procurements or purchases made from establishments not issuing official receipt or sales invoice.

[Further Reference: Guidelines and Principles on the Acceptability of Evidence of Receipt of Payment for Disbursements]

In COA Circular No. 2004-006, the Commission on Audit said:

The RER shall be acceptable for disbursements where the payee is not a business entity required by the Bureau of Internal Revenue to issue ORs and the money is advanced by the official concerned and the expense is authorized to be reimbursed by the government agency concerned.

When to require or use an Acknowledgment Receipt (AR)?

It is noted that the RER is used for expenses advanced (or paid in advance) by a government official or employee and said expense is authorized to be reimbursed by the government agency concerned.

But, what about if the expense was drawn from a cash advance and the purchase or procurement was made from an entity which are not required by the BIR to issue official receipt or invoice? Should government agencies still use RER?

According to the Commission on Audit, an Acknowledgment Receipt (AR) is acceptable for disbursements made from the cash advance of the disbursing official where the payee is not a business entity required by the Bureau of internal Revenue to issue ORs. The acknowledgment receipt may be printed, typewritten or handwritten and must bear the signature of the payee.

When to use or require Official Receipt or Sales Invoice?

Use or require an official receipt or sales invoice for disbursements, regardless of amount, covering procurement made from establishments issuing official receipt or sales invoice.

[Must Read: BIR Explains the Difference Between an Official Receipt and a Sales Invoice]

COA requires Official Receipt for disbursements where the payee or recipient is a business establishment required by the Bureau of Internal Revenue (BIR) to issue Official Receipts for its collections.

The OR may also be in the form of cash receipt tape generated by cash register with Bureau of Internal Revenue seal.

When to use or require a Certification of Expenses not Requiring Receipts?

In 2017, the Commission on Audit issued COA Circular No. 2017-001 to provide guidelines on reimbursement of expenses (of government employees and officials) not requiring official receipt or invoice.

COA issued said Circular in light of the reduced purchasing power of the peso so much so that the Commission allowed that expenses incurred by government officials and employees in the discharge of their official functions amounting to P300.00 or less need not be supported by official receipts.

However, the following expenses should still be supported with official receipt, even if the amount is P300.00 or less:

• Payment of fares in public utility vehicles issuing receipts such as bus, train, vessel/ship; and
• Purchases in business establishments issuing receipts.

Thus, only use or require a “certification of expenses not requiring receipts for expenses” for disbursements costing P300.00 or less, covering purchases / procurement made from establishments not issuing receipts or invoice.

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