Creating a Sales Invoice

A sales invoice is a legal document issued by a seller to a buyer, detailing the goods or services provided, their quantities, unit prices, applicable taxes, and the total amount payable.

In Kenya’s eTIMS (Electronic Tax Invoice Management System), a sales invoice serves as a record of the transaction and ensures compliance with Kenya Revenue Authority (KRA) tax regulations by incorporating an electronic tax invoice.

Purpose of a Sales Invoice in eTIMS System

1. Facilitates Compliance
   It ensures that VAT and other taxes are accurately captured and reported to KRA.
2. Serves as a Transaction Record
   It provides an official document for tracking sales and customer payments.
3. Supports Audit Readiness
   It helps maintain a clear trail of business transactions for tax and financial audits.
4. Enables Taxpayer Verification
   It allows customers to verify the authenticity of the invoice via KRA systems.

Structure of sales invoice

For every sales invoice generated, this is the key structure of the invoice and key details are reflected

1. Date and time
   This is the timestamp of when the invoice is created for tracking
2. Receipt number
   This is a unique number for the receipt
3. Tax rates
   This is the rate of the items/products. They are labeled "A", “B”, "C", "D" and “E”. These items can be either VAT at 16%, goods exempted, zero-rated goods, non-vatable goods, VAT at 8%
4. Seller's KRA PIN
   This is the PIN of the seller, or the one offering the service e.g. the hospital, doctor, etc.
5. Receipt type and transaction type
   Receipts can be normal, proforma, copy, or training. Transaction type can be a sale, credit note, or debit note
6. Buyer's PIN
   This is optional data to be populated. It is the PIN of the person receiving the service, e.g. the customer.
7. Total amount with tax
   This is the total amount to be charged inclusive of tax

Steps to Create a Sales Invoice

1. Enter Customer Details
   Input the customer’s information as follows:
   1. Customer Name
      The full name of the customer or business.
   2. KRA PIN (if applicable)
      The customer’s KRA PIN for VAT transactions.
   3. Contact Information
      Include email and phone number for communication.
2. Add Invoice Details
   Fill in the following information:
   1. Invoice Number
      Auto-generated by the system or manually assigned (ensuring sequential order).
   2. Invoice Date
      Date the invoice is issued.
   3. Due Date
      Specify the payment deadline (optional).
3. List the Products or Services Provided
   For each item sold, provide the following details:
   1. Description
      A brief description of the product or service.
   2. Quantity
      Number of units sold.
   3. Unit Price
      Price per unit.
   4. Tax Rate
      Specify the applicable VAT rate (e.g., 16% or 0% for exempt items).
   5. Total Price
      Automatically calculated as Quantity × Unit Price.
4. Apply Taxes
   The system will calculate VAT and any other applicable taxes based on the tax rate provided. Ensure all taxable items are correctly flagged.
5. Review and Confirm Invoice Details
   Double-check all entered information for accuracy, including:
   1. Customer details.
   2. Item descriptions, quantities, and prices.
   3. Tax amounts and total invoice value.
6. Generate the Invoice
   Click “Save” or “Generate” or "PROCESS" to create the invoice.
   The system will produce a valid electronic tax invoice with a unique QR code, Invoice Number, and KRA Verification Code.
7. Send the Invoice to the Customer
   Share the invoice with the customer via email, printed copy, or any preferred method. The QR code allows the customer to verify the invoice with KRA.
8. Submit to KRA
   Slade360 APIs automatically transmits the invoice details to KRA in real-time, ensuring compliance.

Best Practices for Creating a Sales Invoice

1. Verify Customer Information
   Always confirm the customer’s KRA PIN for VAT-eligible transactions.
2. Ensure Accurate Pricing
   Avoid errors in item pricing or tax rates by cross-checking against records.
3. Use Descriptive Item Details
   Provide clear and precise descriptions for transparency and audit readiness.
4. Review Before Submission
   Double-check all information before saving or generating the invoice.
5. Archive Copies of Invoices
   Retain digital or physical copies of invoices for internal records and compliance purposes.

Benefits of Using Slade360 APIs for Sales Invoices

1. Automated Tax Compliance
   Automatically calculates taxes and transmits invoice data to KRA.
2. Real-Time Integration
   Ensures seamless communication between your business and KRA systems.
3. Enhanced Accuracy
   Reduces human errors in tax calculations and invoice generation.
4. Customer Confidence
   The QR code and verification features assure customers of invoice authenticity.
5. Time Efficiency
   Streamlines the invoicing process, saving time for businesses.
   
   

For more in-depth information, please visit: Sales.

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Why use Slade360 eTIMS APIs?

Creating a sales invoice via Slade360 eTIMS APIs is a straightforward process that ensures your business remains compliant with KRA regulations while maintaining accurate financial records.