Signed Credit Note

An eTIMS-signed credit note is an official document generated and digitally signed within the eTIMS system, ensuring its authenticity, traceability, and compliance with Kenya Revenue Authority (KRA) regulations.

This credit note is linked to a specific sales invoice and serves to adjust or reverse part or all of the original transaction for various legitimate reasons.

Key Features of an eTIMS-Signed Credit Note

1. Digital Signature
   Every credit note issued through eTIMS is digitally signed, providing proof of authenticity and guaranteeing that the document has not been tampered with.
   The signature also ensures compliance with KRA requirements for electronic documentation.
2. Link to Original Invoice
   An eTIMS credit note is directly tied to a specific sales invoice, ensuring traceability.
   This linkage is critical for financial accountability and simplifies audits.
3. Time-Stamped Validation
   The credit note includes a timestamp, confirming the exact date and time of issuance.
   This is particularly important since credit notes must be issued within six months of the original invoice date.
4. Unique Identifier
   Each credit note has a unique identifier (e.g., credit note number) for easy reference and record-keeping.
5. Tax Compliance
   The credit note complies with Kenya’s VAT regulations, automatically adjusting the tax records for the original transaction.It also ensures accurate reporting of taxable amounts.

When to Issue an eTIMS-Signed Credit Note

eTIMS credit notes are typically issued in scenarios such as:

• Invoice Errors
  Corrections to overcharged amounts, incorrect product details, or other errors on the original invoice.
• Damaged or Defective Products
  Adjustment for goods returned due to damage or quality issues.
• Order Cancellations
  Full or partial cancellations of a sale or service.
• Customer Disputes
  Situations where customers contest billed amounts or products delivered.

Advantages of an eTIMS-Signed Credit Note

1. Enhanced Compliance
   Automatically aligns with KRA's electronic tax and reporting requirements.
2. Reduced Fraud Risk
   Digital signatures and unique identifiers protect against unauthorized adjustments.
3. Streamlined Processes
   Simplifies reconciliation and ensures accuracy in financial and tax reporting.
4. Improved Customer Trust
   Demonstrates professionalism and transparency in addressing discrepancies.

Sample of a signed credit note

By using an eTIMS-signed credit note, businesses can efficiently manage post-sale adjustments while maintaining compliance with regulatory standards.