Integrate your ERP System with KRA ETIMS

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SAP Business One (B1) Software | ERP System KRA ETIMS Integration

SAP Business One ERP with KRA ETIMS Integration

ETIMS (Electronic Tax Invoice Management Solution) introduced by KRA (Kenya Revenue Authority), is a framework that makes use of EFDs and ERP systems to authorise the generation of e-invoices and e-receipts.

ACEteK is a KRA accredited software Integrator for SAP Business One and ETIMS. We have studied the ETIMS platform and built expertise in integrating, SAP Business One ERP system to ETIMS as per the requirements detailed on the KRA ETIMS Portal

KRA has resolved that all VAT registered companies issue e-invoices or e-receipts for every business supply made (whether exempt or taxable) using the KRA ETIMS. And that every VAT credit, refund claim an Income tax deduction or expenditure shall not be granted unless such credit, refund claim, expenditure, or deduction is supported by an e-invoice or e-receipt provided the supplier of the goods or services is required to issue an e-receipt or e-invoice.

ETIMS was introduced to promote transparency of transactions, prevent fraudulent purchases where no actual goods movement occurred, and reduce the occurrence of false refund claims. ETIMS made it easy to match input tax and output tax, which was a major challenge earlier in Kenya. It also encouraged businesses to issue invoices and receipts while preventing the loss of records due to a completely digital platform.

Key things to remember about ETIMS in Kenya

After sales information is captured and the transactions are initiated by the system, they are transmitted to the KRA in real-time for the generation of e-receipts and e-invoices.
Post-authentication of every sales transaction, the KRA adds the FDN, InvoiceId, QR Code, and Anti-Fake code fields on the e-receipts and e-invoices generated.
A business has many options to connect to ETIMS to generate e-receipts and e-invoices; system-to-system connection, client app, EFDs, and EDCs.
If a business uses business management software, it can connect to ETIMS using the system-to-system connection for real-time generation of e-invoices or e-receipts.
For better security during data transmission, all data is encrypted when it is transmitted from the taxpayer’s end to the KRA. The public key infrastructure serve is in place to facilitate this.

What are the key features of an invoice or receipt generated using ETIMS?

The e-invoice or e-receipt generated by KRA’s ETIMS Kenya framework adds the following fields:

Fiscal Document number (FDN): The unique invoice document number that is different for every invoice generated.
Quick reference code (QR Code): This code is used to verify the authenticity of the e-invoice.
Invoice identification number (InvoiceId): This is another identification code used to identify the e-invoice generated by the software and authorized by KRA.
Verification code (Anti-Fake Code): This code is there to show the receiver that the invoice is authentic and is used for verification purposes.

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