As Software Dynamics, we understand the relevance of having a seamless Microsoft Dynamics 365 ERP with KRA eTIMS System integration in Kenya. In today’s complex regulatory landscape, compliance with tax authorities is a crucial aspect of any business operation. Kenyan businesses, in particular, have witnessed the transformative power of KRA’s Electronic Tax Invoice Management Solution (eTIMS). This innovative system, introduced by the Kenya Revenue Authority (KRA), has streamlined the process of generating electronic invoices and receipts while bolstering transparency in financial transactions.
Microsoft Dynamics 365 Business Central is a robust enterprise resource planning solution. It’s designed to streamline and optimize business processes. As a certified Microsoft Solutions Partner, we recognize that integrating Business Central with KRA eTIMS, a specialized tax compliance software, is a key feature for your business’s success in Kenya. This integration offers a powerful solution for organizations looking to manage their taxation processes seamlessly and efficiently, with little margin for error.
With our extensive system integration experience, Software Dynamics emphasizes the importance of getting integrations right. Having integrated systems in various areas, including finance, sales, HR, supply chain, and manufacturing, we understand the need for precision and expertise to ensure seamless operation and top performance.
Your Trusted Partner with Over a Decade of Experience.
Streamline with Software Dynamics | Leading KRA eTIMS System Integrator.
eTIMS is a system that uses Electronic Fiscal Devices (EFDs) and Enterprise Resource Planning (ERP) systems to authorize the creation of digital invoices and receipts.
KRA mandated that all VAT-registered companies must use eTIMS to issue electronic invoices or receipts for every business transaction. This requirement applies to both exempt and taxable transactions. Moreover, businesses must possess e-invoices or e-receipts to support claims for VAT credits, refunds, income tax deductions, or expenditures. These documents may be necessary as per supplier requirements.
The purpose of eTIMS is to enhance transparency in transactions. It aims to prevent fraudulent purchases and reduce false refund claims with no actual goods exchange. It simplifies the process of matching input and output taxes, which was previously a significant challenge in Kenya. Furthermore, it encourages businesses to keep accurate records by providing a fully digital platform.
Navigating eTIMS in Kenya: A Comprehensive Overview
Explore the core facets of eTIMS, from real-time data transmission to security measures and connection options. We also uncover the crucial elements present in eTIMS-generated documents, such as unique identification codes that enhance authenticity and verification.
Key Points About eTIMS in Kenya:
- Multiple Connection Options: Businesses can connect to eTIMS in various ways. These include system-to-system connection, client apps, Electronic Fiscal Devices (EFDs), and Electronic Data Capture (EDCs).
- Software Integration: A business using business management software can establish a system-to-system connection to eTIMS for real-time e-invoice and e-receipt generation.
- Real-Time Data Transmission: Once sales information is recorded and transactions are initiated, eTIMS sends the data directly to KRA in real-time. This real-time transmission creates e-receipts and e-invoices for seamless tax compliance.
- Data Security: To ensure secure data transmission, all information sent from the taxpayer’s end to KRA is encrypted. Public key infrastructure is in place to facilitate this high level of security.
- Post-Authentication Additions: After KRA verifies each sales transaction, they include the Fiscal Document number (FDN). They also add a QR Code and an Invoice Identification number (InvoiceId). Furthermore, the generated e-receipts and e-invoices include a Verification code (Anti-Fake Code).
Key Features of eTIMS-Generated Invoices and Receipts:
- Fiscal Document Number (FDN): Each invoice gets a unique FDN, ensuring that every invoice is distinct.
- Quick Reference Code (QR Code): This code serves as a means to verify the authenticity of the e-invoice.
- Invoice Identification Number (InvoiceId): This code aids in identifying the e-invoice, indicating that software authorized by KRA generated it.
- Verification Code (Anti-Fake Code): This code assures the recipient that the invoice is genuine and serves verification purposes.
Begin your eTIMS OSCU and VSCU Integration Journey.
OSCU represents the Online Sales Control Unit, and VSCU represents the Virtual Sales Control Unit. These two tools are designed to establish a connection between an automatic billing system and the Kenya Revenue Authority (KRA).
OSCU is for businesses with online billing systems, while VSCU is for those that handle lots of invoices, even if they’re not always online.
You can link your system to KRA using either OSCU or VSCU.
Integrate with Ease: Connection Made Simple
Below is a step-by-step guide on integrating eTIMS OSCU and VSCU. If you’re new to the world of system integration, this guide is the perfect starting point. We’ll provide you with a clear roadmap to help you understand the basics and gain a solid foundation in the integration process.
A. SIGN UP FOR ACCESS ON THE eTIMS PORTAL
Access the eTIMS taxpayer sandbox portal on the following URL address:
2. Select the Sign-Up option.
3. Select PIN option and complete the Sign Up form.
• You will enter the PIN of the company
• Verify that the masked phone number value displayed is correct and can be accessed as the One Time Password (OTP) message will be sent to this number. In case it is incorrect, write to [email protected] for the correct phone number to be updated.
• Enter and confirm the Password to be used for the taxpayer portal access.
B. REGISTER FOR OSCU OR VSCU DEVICE
- Upon successful sign-up, access the eTIMS taxpayer portal using your credentials (KRA PIN and Password).
- Select the Service Request button at the top right corner of the home page.
- Select eTIMS button on the dialogue box presented.
- The Service Request form will be displayed.
- Complete the Service Request form.
- Select the appropriate eTIMS Type:
i. VSCU (Virtual Sales Control Unit): This is a system that’s set up and managed by the client. It’s best for organizations that need to create a lot of invoices quickly.
ii. OSCU (Online Sales Control Unit): OSCU is a system hosted by KRA. To use it, organizations need to adapt their invoicing systems to work with OSCU’s interface. It’s suitable for businesses that operate online.
iii. eTIMS Client: These are standalone apps for Windows and Android devices (like PCs, mobile phones, and tablets) developed by KRA. They are designed for Large and Medium Taxpayers, both VAT and non-VAT registered, as well as other taxpayers who may request it.
iv. eTIMS Online: This is an invoicing feature available on the eTIMS taxpayer portal. It’s for businesses in the service sector who issue fewer than 10 invoices per month, such as rental property owners, transport service providers, consultants, and lawyers.
• Complete and upload the eTIMS Commitment Form.
6. The Service Request will be processed, and you will receive a confirmation SMS message on your registered mobile number reading “Service Request was approved. You can now proceed with eTIMS installation in your KRA Account.”.
For those looking for a deeper dive into the technical aspects of the integration, we’ve prepared a separate PDF guide. To access it, simply click the link below:
Explore the Technical Details Here: Technical Integration Guide
The Perks of Integrating Dynamics 365 ERP with KRA eTIMS System.
When you integrate Dynamics 365 ERP with the KRA eTIMS System, the result is a powerful synergy that can transform the way your business manages taxation and financial processes.
As your business grows, the integration can adapt to accommodate increasing data volumes and more complex tax requirements, ensuring that your taxation processes remain efficient and accurate.
This dynamic integration offers numerous benefits, such as streamlined tax compliance, real-time data synchronization, automated tax calculations, faster reporting, data accuracy, improved financial visibility, enhanced audit trails, and scalability. These advantages make it a strategic choice for businesses seeking to stay compliant and reduce the complexities associated with tax management.
Benefits of Microsoft Dynamics 365 ERP with KRA eTIMS System Integration:
1. Automated Tax Compliance:
The integration automatically generates and manages your e-invoices and e-receipts in line with KRA’s requirements, reducing the risk of errors and non-compliance.
2. Streamlined Data Flow:
By connecting Microsoft Dynamics 365 ERP with KRA’s eTIMS, the flow of financial data between your ERP system and the tax management solution becomes effortless. This integration enables real-time data synchronization, allowing you to maintain a consistent and accurate record of your transactions.
3. Enhanced Transparency:
KRA eTIMS enhances transaction transparency, preventing fraudulent activities. Integrating it with your ERP system facilitates a more transparent and accountable financial ecosystem.
4. Simplified Audits:
During tax audits or reviews, a seamlessly integrated system ensures that you can readily access and easily verify your e-invoices and e-receipts, making audits less of a hassle.
5. Improved Efficiency:
With the automation provided by this integration, you can redirect your focus from manual tax compliance tasks to more strategic activities that drive business growth.
6. Reduced Risk:
Automating the compliance process significantly diminishes the risk of penalties, fines, or reputational damage resulting from non-compliance.
Additional Benefits of Integration with KRA eTIMS:
– The integration with KRA eTIMS ensures that businesses can adhere to tax regulations and requirements without manual data entry or complex reconciliations, leading to reduced errors and smoother tax reporting.
– Real-time data synchronization between Dynamics 365 ERP and KRA eTIMS ensures data consistency and accuracy.
– Automated tax calculations minimize the risk of miscalculations and simplify the taxation process.
– Faster tax reporting and returns filing reduce the time and effort required for compliance.
– Enhanced financial visibility and a comprehensive audit trail aid in making informed financial decisions and simplifying audits.
– Scalability ensures the integration can accommodate growing data volumes and evolving tax requirements, maintaining efficiency and accuracy.
ensures accuracy, efficiency, and peace of mind for your financial processes.
How Software Dynamics Delivers Results
| Customized Integration | Seamless Onboarding | User Proficiency |
| We specialize in crafting a tailored integration plan for KRA eTIMS, ensuring it aligns with your business’s unique needs and regulatory requirements. | Our team follows industry best practices to guarantee a smooth and successful integration of KRA eTIMS into your existing systems. | We provide extensive training, equipping your team with the skills and knowledge needed to navigate KRA eTIMS effectively, from beginners to advanced users. |
| Effortless Data Migration | Ongoing Support | Tailored Solutions |
| Our services ensure a trouble-free transition when migrating data to KRA eTIMS, simplifying the process for your team. | Our dedicated support program is designed to maximize the value you receive from your KRA eTIMS integration, ensuring high customer satisfaction and compliance. | Leveraging our extensive customization experience, we assist you in tailoring the KRA eTIMS integration to meet your specific business and tax compliance requirements, optimizing your investment. |
A Seamless Tax Solution by Software Dynamics
In summary, Microsoft Dynamics 365 ERP with KRA eTIMS system integration is a strategic step for businesses aiming to streamline tax compliance and reporting. This integration simplifies tax-related tasks, ensures accurate data, offers real-time updates, and improves financial visibility.
It facilitates effortless compliance with Kenyan tax regulations, making it a robust solution for organizations seeking to reduce the complexities associated with tax management. This seamless connection empowers your business with automation, efficiency, and a clearer financial picture, essential elements for sustainable success in today’s business landscape.
Ready to embark on your tax transformation journey? We’re here to help you harness the power of this integration for your business. For inquiries, drop us an email at [email protected] or give us a call at (+254) 20 248 5696. Take the leap into a future of streamlined tax management and unparalleled efficiency. Your success story starts here.
