Introduction
The data hierarchy in DigiTax borrows heavily from KRA (Kenya Revenue Authority) hierarchy.
KRA
The KRA, Kenya Revenue Authority, is an agency of the government of Kenya that is responsible for the assessment, collection and accounting for all revenues that are due to the government, in accordance with the laws of Kenya.
KRA PIN
Under Kenyan law, every taxpayer entity, business, organization and individual, should have a KRA PIN. This PIN is required for filing taxes and doing many transactions in the Kenyan territory. View the requirements needed for registration here.
KRA Data hierarchy
Every business has branches by default. If a business has one location/ branch then that location is the headquarters (Branch ID: 00)
Every branch interacts with KRA as a single entity. It contains items, sales, credit notes, purchases, and the like.
DigiTax Data hierarchy
In DigiTax, we start with an organization. Businesses are contained within organisations.
The organisations represent logical grouping of businesses.
The businesses represent the entities that are recorded in eTIMs:
Business headquarter
Business branches
To better understand this, let's consider three scenarios:
Scenario 1: Single accounting firm or user managing itself
For a single accounting firm or user managing itself, you'll have one organisation and one business within it.
Scenario 1, Example 1
Organisation details:
Organization name: ACME Associates
PIN no: P123456789Y
Type of organization: Business
Business details:
PIN No.: P123456789Y
Business name: ACME Associates
Display name: ACME
Creating this business for: Self
Scenario 1, Example 2
Organisation details:
Organization name: Accountant Mekatilili Mwangeka
PIN no: P123456788Y
Type of organization: Personal
Business details:
PIN No.: P123456788Y
Business name: Accountant Mekatilili Mwangeka
Display name: MW
Creating this business for: Self
Note: In both cases, when creating a business, the option in "Creating this business for:" field is Self.
Scenario 2: Single accounting firm or user managing other firms
For a single accounting firm or user managing other firms, you'll have one organisation and one business within it.
Scenario 2, Example 1
Organisation details:
Organization name: ACME Associates
PIN no: P123456789Y
Type of organization: Business
Business details:
PIN No.: P123456787Y
Business name: Dan-Chao Associates
Display name: DCA
Creating this business for: Another Business
Scenario 2, Example 2
Organisation details:
Organization name: Accountant Mekatilili Mwangeka
PIN no: P123456788Y
Type of organization: Personal
Business details:
PIN No.: P123456787Y
Business name: Dan-Chao Associates
Display name: DCA
Creating this business for: Another Business
Note: In both cases, when creating a business, the option in "Creating this business for:" field is Another Business.
Scenario 3: Single accounting firm or user that is managing itself and other firms
For a single accounting firm or user managing other firms, you'll have one organisation and two businesses within it.
Scenario 3, Example 1
Organisation details:
Organization name: ACME Associates
PIN no: P123456789Y
Type of organization: Business
Business A details:
PIN No.: P123456789Y
Business name: ACME Associates
Display name: ACME
Creating this business for: Self
Business B details:
PIN No.: P123456787Y
Business name: Dan-Chao Associates
Display name: DCA
Creating this business for: Another Business
Scenario 3, Example 2
Organisation details:
Organization name: Accountant Mekatilili Mwangeka
PIN no: P123456788Y
Type of organization: Personal
Business A details:
PIN No.: P123456788Y
Business name: Accountant Mekatilili Mwangeka
Display name: MW
Creating this business for: Self
Business B details:
PIN No.: P123456787Y
Business name: Dan-Chao Associates
Display name: DCA
Creating this business for: Another Business
Note: In both cases, when creating a business, the option in "Creating this business for:" field is Self for one and Another Business for another.
Under an organisation, only one business should be designated Self.