Introduction
The data hierarchy in DigiTax borrows heavily from tax authorities/regulators. Kenya's tax authority - KRA (Kenya Revenue Authority) is a good example.
KRA's Data 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 a profile. Businesses are contained within profiles.
The Profiles represent logical groupings of businesses.
The Businesses represent the entities that are recorded in the relevant tax authority.
In the case of KRA, these are; the business headquarters and its branches.
Learn how to create profiles and businesses here.
Scenarios
To better understand this hierarchy, let's consider three scenarios:
The scenarios below consider Live businesses. You as a user are left to configure your profiles and businesses as you wish.
Scenario 1: Single user or accounting firm managing itself
For a single user or accounting firm itself, you'll have (at least) one profile and one business within it.
Scenario 1, Example 1 (Firm)
Profile details:
Profile name: ACME Associates
Business details:
PIN No.: P123456789Y
Display name: ACME
Scenario 1, Example 2 (User)
Profile details:
Profile name: Accountant Mekatilili Mwangeka
Business details:
PIN No.: P123456788Y
Display name: Accountant Mekatilili Mwangeka
Scenario 2: Single user or accounting firm managing other users or firms
For a single user or accounting firm managing other users or firms, you'll have (at least) one profile and one business within it.
Scenario 2, Example 1 (Firm)
Profile details:
Profile name: ACME Associates
Business details:
PIN No.: P123456787Y
Display name: Dan-Chao Associates
Scenario 2, Example 2 (User)
Profile details:
Profile name: Accountant Mekatilili Mwangeka
Business details:
PIN No.: P123456787Y
Display name: Dan-Chao Associates
Scenario 3: Single user or accounting firm managing itself and other firms
For a Single user or accounting firm managing itself and other firms, you'll have (at least) one profile and two businesses within it.
Scenario 3, Example 1 (Firm)
Profile details:
Profile name: ACME Associates
Business A details:
PIN No.: P123456789Y
Display name: ACME Associates
Business B details:
PIN No.: P123456787Y
Display name: Dan-Chao Associates
Scenario 3, Example 2 (User)
Profile details:
Organization name: Accountant Mekatilili Mwangeka
Business A details:
PIN No.: P123456788Y
Display name: Accountant Mekatilili Mwangeka
Business B details:
PIN No.: P123456787Y
Display name: Dan-Chao Associates
Learn how to create profiles and businesses here.