SECTION 6: BILLING POLICY

I. Purpose

The purpose of this Billing Policy is to establish clear, fair, and legally compliant billing procedures at AVCI Veterinary Practice. This policy ensures the proper handling of financial transactions, security of clinic funds, and accountability of employees involved in billing processes.

This policy aligns with relevant Philippine laws and regulations, including:
• The Labor Code of the Philippines (PD 442) – Governs employee financial responsibilities and liabilities.
• Republic Act No. 11232 (Revised Corporation Code of the Philippines) – Requires proper financial recording for businesses.
• Republic Act No. 10963 (TRAIN Law) – Mandates accurate invoicing and tax compliance for veterinary services.
• Republic Act No. 8792 (E-Commerce Act of 2000) – Governs digital transactions, billing software, and secure payment systems.
• Republic Act No. 10173 (Data Privacy Act of 2012) – Ensures the security of financial and customer data.
• Republic Act No. 8485 (Animal Welfare Act of 1998, as Amended by RA 10631) – Ensures transparency in veterinary billing to protect client trust in animal care services.

II. Billing Responsibilities and Procedures

To maintain efficiency, security, and accountability, billing duties are assigned to specific personnel within AVCI Veterinary Practice.

1. Billing Responsibilities
• Veterinary Receptionists and Veterinary Technicians are responsible for billing.
• Supervisors and managers are prohibited from direct billing responsibilities to ensure financial integrity.

📌 Rationale: This prevents conflicts of interest, financial mishandling, and unnecessary involvement of non-financial staff in revenue transactions.

III. Money Handling and Cash Flow Control

1. Designated Money Handler
• Only the attending veterinary receptionist is authorized to manage cash, credit, and electronic transactions at any given time.
• All financial transactions must go through the receptionist to ensure accuracy and accountability.

2. Cash Flow Management
• No other employees, including supervisors, technicians, or veterinarians, are allowed to handle, tally, or store clinic funds.
• Any discrepancies or imbalances in collections will be the responsibility of the assigned receptionist on duty.

3. Handling Collection Imbalances
• If a cash discrepancy occurs, the attending receptionist must:
   ◦ Report the issue immediately to the supervisor or clinic manager.
   ◦ Conduct a cash reconciliation audit to identify errors.
   ◦ If unresolved, escalate the issue to the Accounting Department for verification.

📌 Legal Compliance: Unauthorized handling of funds outside the designated process may lead to disciplinary action, including termination, under the Labor Code (Article 297 – Fraud, Willful Breach of Trust).

IV. Billing Assignments by Role

1. Veterinary Technicians’ Billing Responsibilities
• Veterinary procedures, vaccines, deworming services, professional fees, surgical fees, and laboratory tests must be billed by the attending veterinary technician.
• Technicians must ensure billing is completed immediately after services are performed, and costs must be agreed upon by the client before charging.

2. Veterinary Receptionists’ Billing Responsibilities
• Pharmaceutical drugs, consumables, and any other unaccounted charges must be billed by the veterinary receptionist.
• Receipts must be issued for all transactions in compliance with RA 10963 (TRAIN Law).

📌 Legal Compliance: Under RA 11232 (Revised Corporation Code), AVCI must keep accurate records of revenue generation and issue official receipts to clients for every transaction.

V. Offset Charges and Adjustments

1. Approval Process for Offsets
• Offset charges (discounts, adjustments, or deductions) must be approved before application.
• The following approvals are required:
   ◦ Supervisors must review the offset request.
   ◦ The practice manager (Noreen Mae C. Aycardo) must provide final approval.

2. Documentation of Offsets
• All approved offsets must be documented with proper justifications and supporting evidence (e.g., discount forms, written approvals, or system logs).
• Any unapproved offsets will be considered a financial violation and may result in disciplinary action.

📌 Legal Compliance: Unauthorized financial deductions violate RA 11232 and may result in legal action for financial mismanagement.

VI. Employee Account Security in Billing Systems

1. Use of Designated Employee Accounts
• All employees must use their designated accounts when processing transactions in AVCI’s billing system.
• Employees are strictly prohibited from using another employee’s account for any billing task.

2. Accountability for Unauthorized Transactions
• Any suspicious financial activity under an employee’s account will be attributed to them unless reported immediately.
• If an employee believes their account has been compromised, they must:
   ◦ Notify the IT administrator immediately.
   ◦ Change login credentials to prevent unauthorized access.

📌 Legal Compliance: Under RA 10173 (Data Privacy Act of 2012), improper handling of financial accounts and unauthorized access to billing systems may result in penalties.

VII. Restricted Access to the Reception Area (Cubicle Policy)

1. Designated Receptionist-Only Area
• The reception area is strictly for receptionists only.
• Employees not assigned to reception (including veterinarians, technicians, and supervisors) are not allowed inside the receptionist’s cubicle.

2. Accountability for Trespassing and Money Handling Issues
• Any non-receptionist found inside the reception area without valid reason will be held accountable for any money discrepancies that arise that day.
• Violators may face disciplinary actions, including warnings, deductions, or suspension.

📌 Legal Compliance: Unauthorized financial access violates RA 11232 (Revised Corporation Code), which requires proper separation of financial handling duties to prevent fraud.

VIII. Digital and Electronic Billing Compliance

In line with RA 8792 (E-Commerce Act of 2000) and RA 10963 (TRAIN Law), AVCI ensures compliance in digital transactions and record-keeping.

1. Official Receipts and Tax Compliance
◦ All veterinary services and pharmaceutical transactions must be issued an official receipt.
◦ Receipts must comply with BIR (Bureau of Internal Revenue) standards.

2. Secure Payment Processing
◦ AVCI accepts cash, debit/credit cards, and online payments through secure billing software.
◦ Digital records must be encrypted and backed up regularly.

3. Data Privacy in Billing Transactions
◦ Client financial data must be kept confidential per RA 10173 (Data Privacy Act).
◦ Unauthorized disclosure of client billing details may result in legal penalties.

IX. Policy Review and Amendments

• This policy will be reviewed annually to ensure compliance with Philippine tax laws, labor laws, and corporate accounting regulations.
• Any amendments will be communicated to all employees and included in the AVCI Employee Handbook.

X. Compliance and Disciplinary Actions

Failure to comply with this policy may result in:
• Verbal or written warnings for minor violations.
• Salary deductions or suspensions for repeat offenses.
• Termination or legal action for serious violations (e.g., fraud, unauthorized money handling).

📌 Legal Reference: Under Article 297 of the Labor Code, fraud and willful breach of trust are valid grounds for termination.