Sales is a critical business function that involves the exchange of goods or services for payment. In the context of invoicing, it’s essential to have a clear understanding of who the customer is and the nature of the transaction.

This is crucial because it directly impacts how the final invoice will be generated and determines who will be listed as responsible for payment. Whether the customer is an individual or an organization funding the transaction, their details are integral to the accuracy of the invoice and compliance with regulatory requirements.

Slade360 eTIMS API takes the following **sales receipt type** as per the eTIMS systems. The code to be sent should conform to:

NOTE: You should submit the sales receipt type as per the options in the above table.

Here are key aspects of the sales and invoicing workflow:

Stock Availability

You cannot sell more than what is available. Since the Kenya Revenue Authority (KRA) maintains a list of all products along with their current stock levels, any sale exceeding available stock will lead to compliance issues.

It is crucial to ensure that the sale quantity matches or is less than the inventory to avoid potential problems.

Customer Details

• Customers as persons or people or individuals
  If a customer is directly paying for services, goods, or products, their information will not be transmitted to eTIMS system.
• Corporate Customers (Companies)
  If the company involved in the transaction is considered the customer and responsible for tax reporting, its details must be submitted to the eTIMS system to ensure tax compliance.

It is a requirement to specify the type of transaction being done. The code to be used should be either from the table below:

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Sales Transaction Identifier

if it is a sale ensure it utilizes **S **to identify the sales transaction

The sale will lead to a payment from the customer and thus a payment method has to be used. The user should be able to use payment methods as stipulated in this table:

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Payment Method

All payments made via bank or check, mobile money, debit, or credit card are classified as cash payments and should use code 01.

Invoice Signing

Cash Customers

Invoices for cash-paying customers should be signed immediately upon completion of the sale.

• Credit Customers
  For credit customers or those whose payments are covered by an insurer, the invoice should only be signed once payment is received from the designated payer.

Invoice Template

The invoice generated must comply with the specifications provided by eTIMS. Advantage has ensured that all required details are included in the template, adhering to eTIMS guidelines to maintain consistency and accuracy.

CREDIT NOTE

A credit note, according to the Kenya Revenue Authority (KRA), is a document issued by a seller to a buyer to correct a previous invoice.

It reduces the amount owed by the buyer, typically because of returned goods, overcharging, or errors in the original invoice. It allows the buyer to adjust their payment or receive a refund.

The credit notes should be issued with the following explicit reasons. The following are termed credit note reason types: