Advance Payments

View previous topic View next topic Go down

Advance Payments

Post by LJ on Thu Jun 19, 2014 12:11 am

Hi everyone. I just would like to ask help on this issue.

If COA questions the advance payments of lease, i.e. Lease of warehouse or office space, how will the PE reply to this query considering that the due dates for the lease payments is stipulated in the lease contract, which is every first week of the applicable month?

Hope you can enlighten me with this matter. Thanks.
avatar
LJ
Active Poster
Active Poster

Female Number of posts : 58
Age : 39
Company/Agency : GOCC
Occupation/Designation : BAC Secretariat
Registration date : 2009-08-25

Back to top Go down

Re: Advance Payments

Post by regina avelino on Thu Jun 19, 2014 11:18 am

advance payment is allowed under section 4.3 of Annex D of Contract Implementation Guidelines for the Procurement of Goods, Supplies and Materials. See excerpt:

4.3. A single advance payment not to exceed fifty percent (50%) of the contract
amount shall be allowed for contracts entered into by a procuring entity for the
following services where requirement of down payment is a standard industry
practice:
1. Hotel and restaurant services;
2. Use of conference/seminar and exhibit areas; and
3. Lease of office space.

regina avelino
Board General
Board General

Female Number of posts : 663
Company/Agency : gocc ncr
Occupation/Designation : staff
Registration date : 2012-02-15

Back to top Go down

Re: Advance Payments

Post by LJ on Thu Jun 19, 2014 9:18 pm

Thanks for the reply regina avelino. But, is my example above falls under no.3? If yes, how are we going to explain to COA our advance payment for our lease contract is valid based on the excerpt you mentioned? We have already cited this info to COA but still they insisted that advance payment for our lease must not be allowed. How do we ho about this? Thanks.
avatar
LJ
Active Poster
Active Poster

Female Number of posts : 58
Age : 39
Company/Agency : GOCC
Occupation/Designation : BAC Secretariat
Registration date : 2009-08-25

Back to top Go down

Re: Advance Payments

Post by regina avelino on Fri Jun 27, 2014 10:18 am

perhaps you can ask them what is their legal basis for not allowing such advance payment. If they think that advance payment requires the approval of the President of the Philippines as per section 4.1 of the said Annex D. They are wrong as section 4.3 does not require prior approval. please ask them the legal basis of their claim.

regina avelino
Board General
Board General

Female Number of posts : 663
Company/Agency : gocc ncr
Occupation/Designation : staff
Registration date : 2012-02-15

Back to top Go down

Re: Advance Payments

Post by LJ on Sat Jun 28, 2014 5:29 pm

Ok. Thanks for the inputs....
avatar
LJ
Active Poster
Active Poster

Female Number of posts : 58
Age : 39
Company/Agency : GOCC
Occupation/Designation : BAC Secretariat
Registration date : 2009-08-25

Back to top Go down

Re: Advance Payments

Post by j.a.trev on Mon Jan 04, 2016 4:08 pm

LJ wrote:Thanks for the reply regina avelino. But, is my example above falls under no.3? If yes, how are we going to explain to COA our advance payment for our lease contract is valid based on the excerpt you mentioned? We have already cited this info to COA but still they insisted that advance payment for our lease must not be allowed. How do we ho about this? Thanks.

Perhaps maybe because GPPB Resolution strictly states, a SINGLE ADVANCE PAYMENT NOT TO EXCEED 50% OF THE CONTRACT AMOUNT SHALL BE ALLOWED. . . . if you did it on a monthly basis then the COA have the reasons to disallow the transactions.

j.a.trev
New Member
New Member

Male Number of posts : 13
Company/Agency : lgu
Occupation/Designation : accountant
Registration date : 2015-05-08

Back to top Go down

Re: Advance Payments

Post by Engr_Roselyn on Mon Oct 10, 2016 3:16 am

maybe you could have allowed a single advance payment of 50% but consumable on the 1st to few months until the advance billing has been exhausted. Until then, you can bill them in on the remaining balance.

Engr_Roselyn
New Member
New Member

Female Number of posts : 11
Company/Agency : Bangko Sentral ng Pilipinas
Occupation/Designation : Outsourced Electrical Engineer
Registration date : 2012-07-15

Back to top Go down

Re: Advance Payments

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum