WATCH | When to require SI, OR, CR, or AR as Proof of Payment?

In our article entitled “EXPLAINER: When to Require Sales Invoice (SI) or Official Receipt (OR) as Proof of Payment” we explained the differences between official receipt and sales invoice.

In the said article, we clarified that an OR is required as proof of payment for the services bought and provided to the government agency while an SI is required as proof of payment for goods bought and delivered to the agency. If such sales was on credit, a collection receipt (CR) or acknowledgement receipt (AR), both duly authorized by the Bureau of Internal Revenue (BIR) to be printed, is required.

In this video by the Accounting Tutorial Center (ATC) the differences between SI, OR, CR and AR are further explained.

ATC also clearly pointed out the common mistakes government accountants and state auditor commit in requiring these proofs of payment. For instance, some accountants and auditors require both sales invoice and official receipt as proofs of payment for the purchase of goods or merchandise while others no longer require collection/acknowledgement receipt even if the sales was on credit.

We hope this video will help you understand more about this matter and become more effective in your job.