ERPNext Country Specific Functionality for Kenya (CSF_KE)

Enhancing ERPNext with Kenya-specific features for tax compliance, payroll, and localized business needs.

Overview

This is a custom application designed to extend the capabilities of ERPNext to meet the unique regulatory and operational requirements of businesses in Kenya. Developed by Navari Limited, this app provides seamless integration with Kenyan tax systems, localized payroll reporting, and additional tools tailored to streamline business processes.

Key features include:

• Tax compliance with Kenya Revenue Authority (KRA) regulations.
• Integration with TIMs (Tax Invoice Management System).
• Comprehensive payroll reports for statutory deductions.
• Localized financial and tax reporting.

This README provides an overview of the application, its features, installation instructions, and additional resources to get you started.

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Features

1. Kenya Payroll Reports

Designed to ensure compliance with Kenyan payroll regulations, these reports generate the necessary documentation for statutory deductions and employee payments.

• P9A Tax Deduction Card Setup
  Explains the process of mapping salary components
• P9A Tax Deduction Card Report
  Summarizes annual Pay As You Earn (PAYE) tax deductions for employees, required for tax filing.
• P10 Tax Report
  Monthly tax return report submitted by employers to KRA.
• NSSF Report
  Tracks contributions to the National Social Security Fund (NSSF) for employee social security.
• NHIF Report
  Details contributions to the National Hospital Insurance Fund (NHIF) for health insurance.
• HELB Report
  Summarizes deductions for Higher Education Loans Board (HELB) repayments.
• Bank Payroll Advice Report
  Generates bank-ready instructions for salary disbursements.
• Payroll Register Report
  Provides a detailed breakdown of payroll transactions for record-keeping and auditing.

2. Tax Reports

Streamlined reporting for sales and purchase taxes to ensure compliance with Kenyan tax laws.

• Sales Tax Report
  Summarizes VAT and other taxes collected from sales transactions.
• Purchase Tax Report
  Details VAT and taxes paid on purchases for accurate tax reconciliation.

3. Tax Compliance Features

Custom fields and integrations to meet KRA tax regulations and facilitate seamless reporting.

• Custom ETR Fields in Invoices
  Captures TIMs invoice details in Sales and Purchase Invoices for Electronic Tax Register (ETR) compliance.
• TIMs HSCode Integration
  Links items to Harmonized System (HS) codes for accurate tax classification and reporting.
  Learn more.
• VAT Withholding
  Simplifies importing VAT withholding data from the KRA website into ERPNext for reconciliation.

TIMs Parser Integration

For TIMs integration, we partner with Cecypo. Contact them for installation and setup assistance.

4. Additional Features

• Selling Item Price Margin
  Calculates and tracks profit margins on sales items to aid in pricing and profitability analysis.

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Installation 🛠️

Follow the instructions below to install CSF_KE on your ERPNext instance. You can choose between self-hosting with Frappe Bench or using FrappeCloud.

Prerequisites

• A working ERPNext instance (v13 or higher recommended).
• Access to a terminal with bench commands enabled (for self-hosting).
• Git installed on your system.

Option 1: Manual Installation (Self-Hosting)

1. Set Up Frappe Bench
   If you don’t already have a Frappe Bench instance, follow the official Frappe installation guide to set it up.

2. Add the CSF_KE App
   In your Bench directory, run the following command to download the app from GitHub:

   bench get-app https://github.com/navariltd/navari_csf_ke.git

3. Install the App on Your Site Replace <your.site.name.here> with your ERPNext site name and run:

   bench --site <your.site.name.here> install-app csf_ke

4. Verify Installation

   Restart your Bench instance and log in to ERPNext to confirm that the CSF_KE app appears in your app list.

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Option 2: FrappeCloud Installation ☁️

1. Set Up a FrappeCloud Account Sign up or log in to FrappeCloud.

2. Create a Bench and Site Follow the FrappeCloud dashboard instructions to create a new Bench and site.

3. Add the CSF_KE App

   • Navigate to the Apps tab in your Bench.
   • Click Add App.
   • Search Navari CSF Ke
   • Click Install. OR
   • Frappe Cloud Marketplace
   • Click Install Now.

4. Activate the App

• Once installed in your bench, add the app on your site via the FrappeCloud interface.

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Configuration

After installation, configure the app to suit your business needs:

1. Set Up Tax Rules

• Define VAT, set up P9A Tax Deduction, and withholding tax settings in ERPNext’s Accounts module.

2. Link TIMs Integration

• Contact Cecypo for TIMs Parser setup.

Test Reports

• Run sample payroll and tax reports to ensure data accuracy.
• Make some transactions to ensure TIMs Tax fields are setup.

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Usage Examples

Generating a P9A Tax Deduction Card

1. Navigate to the Kenya module in ERPNext.
2. Select P9A Tax Deduction Card Report from the Payroll reports.
3. Choose the employee and year.
4. Export the report as a PDF for submission to KRA or employee records.

Importing Customer's Paid VAT Withholding Data

1. Log in to the KRA portal and download your VAT withholding statement.
2. In ERPNext, go to the VAT Withholding doctype and click Import.
3. Upload the file using the Data Import tool and map the fields as prompted.
4. Save and Submit the imported records and reconcile the Journal Entries created.

Selling Item Price Margins

1. Open the Selling Item Price Margin doctype.
2. Set up your preferred Price List, Margin Type, Margin Amount and Items
3. Save and Submit the newly created document.
4. The system automatically calculates the margin percentage for analysis on Purchase Receipt or Purchase Invoice submission.