Revised Guidelines on Operations of Postage Charge Account Service

Policy, purpose, and intent

The Philippine Postal Corporation is committed to provide the widest and highest quality of postal service that adequately meets changing customer needs.
The Postage Charge Account Service is introduced to encourage bulk mailers to patronize PPC products and services.
The guidelines prescribe uniform rules to govern management and operations of the Service.
The guidelines require an effective internal control system for managing and operating the Service.
The guidelines implement an effective, efficient, and uniform accounting and reporting system to provide vital information to management.

Coverage, service limits, and rules

The guidelines govern all aspects of the Service’s management and operation (Section 3.1).
The guidelines cover both Postage Charge Account Holders and Postal officials and employees involved in management and operation (Section 3.2).
The guidelines apply to account holders prior to the guidelines’ effectivity (Section 3.3).
The Service may be availed by applicants whose minimum monthly mailing charges amount to PhP10,000.00 (Section 5.1).
Authorized applicants include: private business firms/companies/corporations (including branch offices), government-owned and controlled corporations, government agencies (regional/city/municipal offices), Local Government Units, and individual bulk mailers (Section 5.1(a)-(e)).
The Service is limited to the following mail types (Section 5.6):
- Domestic Mails: Ordinary; Registered (with or without Registry Return Receipt); Special Delivery; Priority Mail; Express Mail; Small Packet; Parcels.
- International Mails: Ordinary (Letter Post); Registered (with or without Registry Return Receipt); Express Mail; Small Packet; Parcels.
Mails posted using the Service must not be subject to discounts (Section 5.7).
Holders must post their mails and pay accounts only at the Post Office where the Authority was granted (Section 5.8).
Every mail posted must be accompanied by a Certificate of Mailing (Section 5.9).
The billing period is monthly (Section 5.10).

Definitions and key terms

Application refers to the Application for Postage Charge Account (PCA Form No. 1) (Section 4.1).
Agreement refers to the terms and conditions of the Postage Charge Account written on the reverse side of the Application (Section 4.2).
Authority refers to the authority to avail of the Service granted by PPC through the Regional Director to qualified applicants with minimum monthly mailing charges of PhP10,000.00 (Section 4.3).
Certificate refers to the Certificate of Mailing (PCA Form No. 2) accomplished by holders when posting mails (Section 4.4).
Corporation refers to the Philippine Postal Corporation (Section 4.5).
Holder refers to the applicants granted authority to avail of the Service (Section 4.6).
Delinquent refers to holders who failed to settle their account for at least three (3) consecutive months (Section 4.7).
PCA No. refers to the Postage Charge Account Number issued to applicants granted authority (Section 4.8).
Service refers to the Postage Charge Account Service (Section 4.9).

Authority validity, PCA number, and credit limits

The Authority granted is valid for two (2) years from the date of approval, subject to renewal (Section 5.3).
Every holder is provided with a Postage Charge Account Number formatted as PCA No. xx - xxxx - xxx (Section 5.4).
The PCA number structure is: xx as region number; xxxx as post office number; xxx as a serial number with one series every region (Section 5.4).
For the National Capital Region and Cordillera Autonomous Regions, the region codes must be C1 for National Capital Region and C2 for Cordillera Autonomous Region (Section 5.5).
The Service’s operational acceptance of mailing depends on the Holder’s Authority and credit determination through the application workflow (Sections 6.1.3 to 6.1.7, and Section 5.3).

Internal control duties by office

The Post Office must: accept, evaluate, and verify applications; accept mails posted by holders; issue statements of account; accept payments; and prepare PCA reports (Section 5.2.1(a)-(e)).
The Accounting Section, Regional Office must: recommend a credit line of the applicant; maintain subsidiary ledgers and prepare related financial reports; and monitor unpaid accounts (Section 5.2.2(a)-(c)).
The Records Unit, Regional Office must: issue PCA numbers to newly approved holders; and transmit approved applications to concerned offices (Section 5.2.3(a)-(b)).
The Regional Director must approve the authority based on recommendations of the Regional Accountant and the Postmaster (Section 5.2.4).

Application, approval, renewal, and upgrading

Applicants must secure Application for Postage Charge Account (PCA Form No. 1) and accomplish it in triplicate (Section 6.1.1).
The application in triplicate must be submitted to the Post Office together with supporting documents depending on applicant type (Section 6.1.1(a)-(c)):
- Government offices/agencies/corporations/institutions/LGUs: Certificate of Availability of Funds for two (2) months’ estimated mailing expenses issued by the Chief Accountant.
- Private companies/corporations (including branch offices): Certificate of Registration issued by DTI or SEC; Latest financial statement; and Certificate of Availability of Funds for two (2) months’ estimated mailing expenses issued by the Accountant or Treasurer.
- Individual bulk mailers: certification from the Postmaster that the individual regularly mails in bulk; and Certificate of Availability of Funds for two (2) months’ estimated mailing expenses issued by the mailer.
The Postmaster must verify the application’s information by establishing the address; checking authorized signatories and specimen signatures; and verifying the validity of attachments (Section 6.1.2(a)-(c)).
The Postmaster must forward the duly verified application with attachments to the Accounting Section, Regional Office within five (5) days upon receipt to determine the credit limit based on certified available funds for the two (2) months’ estimated mailing expenses (Section 6.1.3).
The Accounting Section must forward the application to the Records Unit within three (3) days upon receipt for assignment of the PCA number (Section 6.1.4).
The Records Unit must forward the duly accomplished application to the Regional Director for approval (Section 6.1.5).
The Records Unit must immediately transmit to the Postmaster: the original and triplicate copies of the approved application, and must retain the duplicate for filing (Section 6.1.6).
Upon receipt of the approved application, the Postmaster must transmit the original copy to the applicant and keep the triplicate for the holder’s file (Section 6.1.7).
Before accepting mails from the holder, the Postmaster must orient the holder on postal rules and regulations, including computation of postage rates, and must provide copies of the Schedule of Postage Rates and the Postal Zip Code (Section 6.1.8).
The Postmaster must notify holders of Authority expiration two (2) months before the expiration date (Section 6.2.1).
Holders may request upgrading of credit line by letter request to the Regional Director through the Postmaster, supported by the holder’s latest Certificate of Availability of Funds for the two (2) months’ mailing expenses (Section 6.2.2).
Renewal of Authority is granted only upon payment by the holder of all outstanding balances (Section 6.2.3).

Mailing procedures and certificates

Holders or their duly authorized representatives must post mails only at the Post Office where the application was authorized (Section 6.3.1(a)).
Holders must accomplish the Certificate of Mailing (PCA Form No. 2) in triplicate (Section 6.3.1(b)).
Holders must sort or segregate mails by classes as indicated in the certificate (Section 6.3.1(c)).
The Postmaster or designated employee must weigh, compute, and impress postage due using the Postage Metered Machine; where there is no PMM, holders must be provided postage stamps equivalent to total postage due to be affixed by the holder on each mail posted (Section 6.3.2(a)).
The Postmaster or designated employee must verify the correctness of the certificate (Section 6.3.2(b)).
The Postmaster or designated employee must prepare Monthly Summary of Mailing (PCA Form No. 3) in triplicate for each holder (Section 6.3.2(c)).
The Postmaster or designated employee must record transactions in the Record of Postage Charge Account Transactions (PCA Form No. 4) based on the Monthly Summary (Section 6.3.2(d)).
Mails posted under the Service must be treated in accordance with established mail processing and handling procedures for each class of mail (Section 6.3.3).

Billing cycle, statements, and payment deadlines

The Postmaster/Cashier must prepare a Statement of Account (PCA Form No. 5) for every holder at the end of each month, in triplicate, based on the Monthly Summary of Mailing (Section 6.4.1).
The original Statement of Account must be sent to the holder by Registered Mail with Registry Return Receipt, not later than the 5th working day of the following month (Section 6.4.1).
Delivery of the Statement must be given preference (Section 6.4.1).
The Postmaster must ensure that past due accounts and/or penalty are included in the current billing (Section 6.4.2).
The Postmaster or Cashier must record billing particulars in the Summary of PCA (Section 6.4.3).
Payment of billings must be made on or before the 25th day of the following month (Section 6.5.1(a)).
Payments must be made by check or Postal Money Order payable to Philippine Postal Corporation (Section 6.5.1(b)).
Post-dated and out-of-town checks must not be accepted (Section 6.5.1(b)).
Payment must be made at the billing Post Office (Section 6.5.1(c)).
Upon receipt of payment, the Postmaster/Cashier must issue an Official Receipt indicating: date, serial number, and amount of check or Postal Money Order; and the billing period covered (Section 6.5.2(a)-(b)).
If the due date falls on a Saturday, Sunday or Holiday, the due date is moved to the next working day (Section 6.5.3).
Accounts paid after the due date incur a penalty of One Thirtieth of One Percent (1/30 of 1%) or .00033 for every day of delay on the outstanding and unpaid amount (Section 5.11 and Section 6.5.3).

Delinquency consequences and surcharge

Holders with unpaid accounts for three (3) consecutive billing periods are considered delinquent and subsequent mailing is not accepted (Section 5.12).
When an account is delinquent, the Postmaster must refer delinquent account(s) to the Legal Affairs Section, Regional Office for appropriate legal action (Section 5.12).
Unpaid accounts are subject to the surcharge equal to 1/30 of 1% for each day of delay in payment (Section 5.11).

Accounting and reporting system

At the Post Office level, postage or metered stamps affixed/impressed on PCA mails must not be recorded in the Cash Book, and must be treated as cash items in the Postmaster/Cashier’s stamps or PMM sales accountability (Section 6.6.1.1).
Collection from Postage Charge Account must be recorded in the debit column of the Official Cash Book for General Fund as “Postage Charge Account (PCS)” (Section 6.6.1.2).
The Postmaster or PMM Operator must indicate in the Postage Meter Machine Control Book the total amount used for PCA mails based on the Certificate of Mailing (Section 6.6.1.3).
For control purposes, redemption of cash items (Certificate/Statement of Mailing treated as cash items in stamps or PMM sales accountability) must occur upon payment of PCA, and redeemed cash items must be marked “PAID” and kept in a separate file (Section 6.6.1.4).
The Postmaster must submit reports on or before the 5th day of the following month (Section 6.6.1.5), including:
- Monthly Summary of Mailing (PCA Form No. 3) per holder with copies of Certificate(s) of Mailing: original to Accounting Section, RO; duplicate to Operations Division, RO; triplicate to PM’s file.
- Statements of Account (PCA Form No. 5): duplicate to Accounting Section, RO; triplicate to PM’s file.
- Abstract of PCA Collection (PCA Form No. 6) with copies of official receipts: original to Accounting Section, RO; duplicate to COA (Resident Auditor); triplicate to PM’s file.
At the Regional level, upon receipt of monthly reports, the Accounting Section must take up Bills rendered through entries for Account Receivable (code 8-71-600) as debit, Trade/Business Income – Postage Charge Account Income (code 1-57-216) as credit, and Penalty/Surcharge (code 0-60-300) as credit (Section 6.6.2.1(a)-(c)).
The Accounting Section must post in the subsidiary ledger per PCA holder and maintain the general ledger (Section 6.6.2.1(b)-(c)).
Upon receipt of Record of Collection, Abstract of PCA Collections, and duplicate copies of official receipts, the Accounting Section must effect accounting entries including debit to Cash (code 8-70-400) and crediting Stamp Sales (code 1-57-200), MO Sales (code 1-57), PMM Sales (code 1-57), and crediting Account Receivable (for the PCA trade/business) (Section 6.6.2.2).
On or before the 5th day of the following month, the Accounting Section must prepare Statement of Bills Rendered in duplicate distributed to the Resident Auditor (original) and retained as office file (duplicate) (Section 6.6.2.3).
On a quarterly basis, the Regional Accountant must prepare the usual ageing schedule of PCA receivable, furnishing: original to COA Auditor, RO; duplicate to APMG for Finance; triplicate to Internal Audit Service; quadruplicate to Office File (Section 6.6.2.4).