1. Purpose
This Standard Operating Procedure (SOP) establishes standardized processes for the eSigner module within Bylon ERP, ensuring compliance with the Kenya Revenue Authority (KRA) Electronic Tax Invoice Management System (eTIMS) requirements. The eSigner module enables:
- Digital signing and validation of tax invoices
- Real-time transmission of invoice data to KRA
- Generation of QR codes for invoice verification
- Secure storage of signed documents
- Audit trail maintenance for all signed transactions
- Credit note and debit note processing
Compliance Note: All businesses registered for VAT in Kenya are required to comply with KRA eTIMS regulations. The eSigner module ensures your invoices meet all legal requirements for tax compliance.
2. Scope
This SOP applies to all operations related to electronic invoice signing and KRA eTIMS compliance within Bylon ERP, including:
- Standard tax invoice signing and transmission
- Credit note creation and submission
- Debit note processing
- Export invoice handling
- QR code generation and verification
- Error handling and resubmission procedures
- Audit and compliance reporting
Portal Access: https://etims.bylon.cloud
3. System Requirements & Prerequisites
3.1 KRA Registration Requirements
- Valid KRA PIN for the business entity
- eTIMS registration with KRA completed
- Device registration on KRA eTIMS portal
- Valid eTIMS API credentials (provided by KRA)
3.2 Bylon ERP Configuration
- Active Bylon ERP subscription with eSigner module enabled
- Company details properly configured (PIN, address, contacts)
- Tax rates configured according to KRA requirements
- Stable internet connection for real-time transmission
Important: Before using eSigner, ensure your KRA eTIMS registration is complete and you have received your API credentials. Contact Bylon Support for assistance with initial setup.
4. Supported Document Types
The eSigner module supports the following KRA-compliant document types:
Standard Invoice
Regular tax invoices for domestic sales
Credit Note
For returns, refunds, and price adjustments
Debit Note
For additional charges and corrections
Export Invoice
Zero-rated invoices for exports
5. Roles & Responsibilities
5.1 System Administrator
- Configure eSigner module with KRA credentials
- Manage user access and permissions
- Monitor system connectivity with KRA eTIMS
- Handle escalated technical issues
- Ensure backup and recovery procedures are in place
5.2 Finance Manager / Accounts Officer
- Review and approve invoices before signing
- Monitor daily transmission reports
- Handle credit note and debit note approvals
- Reconcile eTIMS reports with internal records
- Prepare compliance reports for management
5.3 Sales Team / Invoice Creators
- Create accurate invoices with correct customer details
- Ensure proper tax classification of items
- Verify invoice details before submission
- Report transmission errors immediately
6. Invoice Signing Process
6.1 Standard Invoice Signing
Follow these steps to sign and transmit an invoice to KRA:
1. Create Invoice in Bylon ERP
↓
2. Verify Invoice Details
↓
3. Click "Sign & Submit"
↓
4. System Transmits to KRA
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5. Receive CU Invoice Number
↓
6. QR Code Generated
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7. Print/Email Signed Invoice
6.2 Required Invoice Information
| Field | Description | Required |
|---|---|---|
| Customer PIN | Valid KRA PIN of the customer | Yes (for B2B) |
| Customer Name | Registered business name | Yes |
| Invoice Date | Date of invoice creation | Yes |
| Item Description | Clear description of goods/services | Yes |
| Quantity | Number of units | Yes |
| Unit Price | Price per unit (excl. VAT) | Yes |
| Tax Rate | Applicable VAT rate (16%, 8%, 0%) | Yes |
| Total Amount | Final amount including VAT | Yes |
7. Credit Note Processing
Credit notes must be issued for returns, refunds, or price reductions. Each credit note must reference the original invoice.
7.1 Credit Note Creation Steps
- Navigate to the original invoice in Bylon ERP
- Select "Create Credit Note" option
- Enter the reason for the credit note
- Specify items and quantities being credited
- Review credit note details
- Click "Sign & Submit" to transmit to KRA
- Credit note receives CU number and QR code
Reference Requirement: Every credit note must include the original invoice number and CU invoice number. The system automatically links credit notes to their parent invoices.
8. Error Handling & Troubleshooting
8.1 Common Errors and Solutions
| Error Code | Description | Solution |
|---|---|---|
| E001 | Invalid Customer PIN | Verify customer's KRA PIN is correct and active |
| E002 | Connection Timeout | Check internet connection, retry transmission |
| E003 | Duplicate Invoice | Invoice already submitted; check existing records |
| E004 | Invalid Tax Rate | Ensure tax rate matches KRA-approved rates |
| E005 | Session Expired | Re-authenticate with KRA eTIMS portal |
8.2 Issue Escalation
If you encounter persistent errors that cannot be resolved:
- Document the error code and message
- Take a screenshot of the error
- Note the invoice number and timestamp
- Raise a support ticket via:
- Bylon Support Portal: www.bylon.cloud/support
- eSigner Portal: etims.bylon.cloud
9. Reporting & Compliance
9.1 Available Reports
- Daily Transmission Report: Summary of all invoices transmitted to KRA
- Failed Transmission Report: List of invoices that failed to transmit
- Credit Note Register: All credit notes issued with linked invoices
- VAT Summary Report: Total VAT collected, categorized by rate
- Audit Trail Report: Complete history of signing activities
9.2 Monthly Reconciliation
At the end of each month, the Finance team must:
- Generate the monthly eTIMS transmission report
- Compare with internal invoice register
- Identify and resolve any discrepancies
- Archive reports for audit purposes
- Prepare VAT return based on eTIMS data
10. Security & Data Protection
- All communications with KRA eTIMS are encrypted using TLS 1.2+
- API credentials are stored securely and never exposed in logs
- Access to eSigner module is role-based and audited
- Signed invoices are tamper-proof with digital signatures
- Regular backups ensure data recovery capability
- Session timeouts prevent unauthorized access
Security Reminder: Never share your eTIMS credentials. If you suspect unauthorized access, immediately change your password and notify the System Administrator.
11. Document History
| Version | Date | Author | Changes |
|---|---|---|---|
| 1.0 | January 2026 | Bylon ERP Team | Initial release |