ISCA-Compliant Features in Zoho Inventory

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Since January 1, 2018, VAT-registered businesses in France which involve the usage of cash registers, point-of-sale (POS) or billing software must ensure that their software complies with the ISCA requirements.

ISCA is an acronym that represents the following compliance requirements:

• Inalterability - The transaction details cannot be modified or deleted without trace.
• Security - The transaction details should be protected against unauthorized access or manipulation.
• Conservation - The transaction data should be stored for the legally required period of 7 years (6 years + the current fiscal year).
• Archiving - The transaction records should be properly archived and retrievable for tax audits.

An ISCA-compliant software must be certified by an accredited organization. Businesses that fail to use certified software may face a penalty of €7,500 for each non-compliant system and are required to rectify the issue within a specified period to avoid additional penalties.

This requirement is part of France’s broader effort to strengthen transparency and reliability in digital transaction records.

Let us now take a look at the ISCA-compliant features available in Zoho Inventory that help ensure transaction security, traceability and compliance with regulatory requirements.

Non-Alterable Transactions

Once transactions are changed to the Mark as Open status, Zoho Inventory locks them and prevents further modification. However, certain non-critical fields such as internal reference fields (for example the Sales Person field) and fields that do not appear in the transaction PDF can still be edited even when the transaction is in the Open status.

A digital signature is a secure, system-generated code created from a transaction’s key details, such as the amount, date and transaction number. It acts like a unique fingerprint for the transaction, helping verify that the data has not been altered after it was recorded. In Zoho Inventory, a digital signature is generated for each transaction along with the digital signature of the previous transaction. This creates a secure chain of records that ensures data integrity and authenticity.

Unique and Sequential Transaction Numbering

Transactions such as invoices and credit notes that are in Draft status will not be assigned a transaction number and will be identified only as Draft. Numbering begins only when the status changes to Open, at which point a unique number is generated and assigned. This ensures numbering is applied only to finalised records and maintains a consistent sequential order.

Once a transaction number series is assigned to a transaction, it cannot be changed in Zoho Inventory. Changes are permitted only in rare cases with a valid reason, and any such changes are recorded in the activity logs for audit purposes.

Duplicate transaction numbers are not allowed. Imported invoices and credit notes also follow the same sequential numbering system, while their original numbers are retained for reference.

Activity Logs for Tracking System Actions

All user actions and system activities within your organization are recorded and maintained in Activity Logs. Log data that supports ISCA compliance is stored securely using hashing and chaining mechanisms, which protect records from tampering and ensure traceability over time.

Additionally, technical logs for a specific period can be accessed by generating a tax archive file, which allows businesses and auditors to review the stored system activity when required.

Data Archiving

As per the ICSA regulations, tax archiving of transaction details along with their digital signatures can be done in Zoho Inventory. The archive also includes key information such as period-closing details and technical event logs. This archive helps preserve records for compliance and contains all the information required for audit purposes.

Here’s how you can generate a tax archive in Zoho Inventory:

• Go to Settings in the top right corner.
• Select Data Management under Developer Data.
• Go to the Tax Archive tab and click + New in the top right.
• In the Generate Tax Archive popup, enter the From Date and To Date to specify the range of transactions to include in the archive.
• Click Generate.

The tax archiving process will now begin.

Once the process is completed you can download the tax archive as ZIP file. The ZIP file would contain:

1. The Tax Archive file in CSV format.
2. A reference guide in TXT format.
3. The Activity Logs in CSV format.
4. The Period Closure details in CSV format.

Here’s how you can download the tax archive ZIP file:

• Go to Settings in the top right corner.
• Select Data Management under Developer Data.
• Go to the Tax Archive tab.
• In the Tax Archive list page, click Download next to the tax archive that you want to download.

The tax archive ZIP file will now be downloaded to your device.

Period Closing

Period Closing in Zoho Inventory works like a summary of sales and transaction activity for a specific time period. The system automatically generates these summaries through scheduled processes. A daily period closing records the summary of the previous day’s transactions, a monthly period closing captures the aggregated summary of all transactions for that month, and a yearly period closing provides the overall summary for the year.

After each period closing is created, the totals for that period are frozen so they cannot be altered. The closing record is then generated by combining the previous closure record with the new closure details, after which it is digitally signed. This process creates a continuous and secure chain of records. As a result, the integrity of the data is maintained, the summaries remain reliable, and the records can be verified during audits. The details of these period closures are also included in the tax archive file for compliance and audit purposes.

Amending Transaction Details

In accordance with the ISCA compliance standards, invoices cannot be modified once they have been issued. If any changes are required, a credit note can be issued to correct the invoice details or to cancel the invoice entirely. In cases where specific information needs to be corrected, a new correction invoice can be created to properly adjust the original invoice data while maintaining an accurate transaction record.

User Permissions

In Zoho Inventory you can add and manage multiple users. This allows you to assign roles (existing role or new role) and permissions so that access is limited to features relevant to each user’s responsibilities.

Feature Update

Whenever a new feature related to ISCA requirements is introduced, a new version is released and the update is recorded in the Activity Logs for reference and audit purposes.

You will also be informed about recent updates through the What’s New page, Help documentation and the FAQ section. In addition, updates and important information are communicated through emails, in-app notifications and banners.