QUESTION: Sir John, can you tell us when to issue and when not to issue Official Receipt?
ANSWER: There are two kinds of receipts. One is Official Receipt, and the other is Acknowledgement Receipt. Official Receipt is for BIR purposes. If your client pays you your earnings such as Professional Fee, Service Fee, or Commission, you use the Official Receipt.
On the other hand, Acknowledgement Receipt is for Non-BIR purposes, it is just a paper trail of the movement of paper, thing, offer, notice, information, or money or whatever anything that exists na pinasa sayo. When anyone gives you a document, or money on fiduciary account, you use Acknowledgement Receipt. Acknowledgement Receipt can be a rubber stamp on the document or just your simple hand-writing on a piece of paper that you give to the one who gives you the document or money as a proof that you received something.
QUESTION: Sir John, I am property manager of a house and lot. It is being leased now to a tenant. Should I issue Official Receipt to the lease payments?
ANSWER: You only issue Official Receipt to lease payments if it is a SUB-LEASE case. A Sub-Lease is when the owner of the property leases the property to you and you in turn sub-lease it to someone else for profit. If it is a sub-lease, you issue Official Receipt.
On the other hand, a simple Property Management is not a sub-lease case. All payments of the tenant merely may only pass through you, but not paid to you because the payment is for the property owner. In this case, you issue Acknowledgement Receipt to the tenant, and you make sure that you have documents to prove that the payment is received by the owner of the property. In Property Management, it is the owner of the property who is obliged to issue Official Receipt, kapag wala siyang Official Receipt, problema nya yan.
Of course the Acknowledgement Receipt can be monitored by anyone, including client, customers, BIR, or literally anyone. My point is, DO NOT USE OFFICIAL RECEIPT if the payment is not for your earnings, otherwise mabulabog ang accounting mo nyan.
You don't put lease payments under CASH. The payment is not for you, you are just a collector, you hand it over to the owner or deposit it on his bank account within the prescribed period specified by the owner. If this is too complex for you to understand, then tell the tenant to pay directly to the bank account of the Owner.
Lets say ang Lease ay P50,000. Ang commission mo P5,000. Pag mag-bayad ang Tenant sa bank account ng Owner P50,000. You bill the Owner the P5,000, bigyan mo Official Receipt ang Owner. Remember, ang client mo, ang magbabayad ng services mo, ang Owner, hindi ang Tenant.
PILFERAGE is when Tenant pays P50,000 at ikaw ang binigyan ng pera, tapos binulsa mo ang P5,000 commission mo at ang dineposit mo sa banko ng Owner ay P45,000 lang. Pag ganyan ang arrangement ninyo ng Owner, ang tawag dyan ay Pilferage with Consent. Magulo yang Pilferage kasi ang Acknowldgement Receipt na makukuha mo sa Banko sa dineposit mo ay P45,000 lang so pag binigay mo yang A/R na P45,000 lang sa Tenant magkaka-problema ka nyan.