E-invoicing

The e-invoicing system in Kenya known as Tax Invoice Management System required all the VAT registered companies to report all their transactions in real-time to the KRA (Kenya Revenue Authority).

Prerequisite

• Buy the Type C device from One Source Solutions to push invoices to KRA.
• Register for VAT online via iTax.

Enable e-Invoicing

To enable e-invoicing for your organisation:

• Go to Settings and navigate to e-Invoicing.
• Enable the toggle e-Invoicing in Zoho Books.
• Click Configure.
• Enter the TIMS credentials such as the VAT Registration Number, E-invoice Service IP, Sender ID, and Middleware Serial Number.
• Check the I hereby agree to send my data to One Source Solution middleware who will in-turn communicate with TIMS Tax Server box.
• Click Save.

E-invoicing will be enabled for your organisation and you’ll be able to push all the invoices you create in Zoho Books to the middleware and then KRA.

Push invoices

Once you’ve enabled e-invoicing in Zoho Books, you can create invoices and push them to the middleware, One Source Solution. Here’s how:

• Go to Sales from the left sidebar and navigate to Invoices.
• Go to the invoice that you want to push.
• Click Push to Middleware.

Once the invoice details are pushed to One Source Solution successfully, One Source Solution will validate the invoice details and push it to KRA. If the validation fails, the invoice push status will change to Failed.

If the invoice gets rejected by KRA, you will receive an email from KRA, listing the reason for rejection. You can then create a new invoice with the updated information and push the invoice to One Source Solution again.

Edit or Delete E-invoices

Once an invoice is sent or has been marked as Sent, you cannot edit or delete it. To rectify the error, you can either create a debit note or a credit note.

Let’s say you’ve created an incorrect invoice for KES 400/- instead of KES 350/- you cannot edit or delete this invoice. To correct this error , you can create a credit note for KES 50/-. Likewise, if you created an invoice for KES 50/- instead of KES 500/- you can create a debit note for KES 450/-.

To create a debit or credit note:

• Go to Sales from the left sidebar and click Invoices.
• Select the invoice with the incorrect amount.
• Click the Ellipsis icon in the top corner of the page.
• Select Create Debit Note if you wish to increase the invoice amount or Create Credit Note if you wish to decrease the invoice amount.
• Enter the necessary details on the following page and click Save.