HS Code Configuration

KRA requires each taxable item to carry a Harmonised System (HS) Code: a standardised international code that classifies goods. The integration adds HS Code support at the item level within ERPNext.

Setting HS Codes on Items

1. Open an Item record in ERPNext.
2. Go to the Taxes child table.
3. You will see a new field: TIMs HS Code. TIMs HS Code
4. Set the HS Code that corresponds to this item's Item Tax Template.

This means you can assign different HS Codes to the same item depending on which tax template applies and is useful if a single item is taxed differently across different business scenarios or regions.

Setting HS Codes at the Item Group Level

If you have a large number of items that share the same tax template and HS Code, you can avoid configuring each item individually by setting the HS Code at the Item Group level. The Item Group also has a taxes table where you can set the Tax Template and HS Code combination.

Auto-Population on Sales Invoices

When a Sales Invoice is created, the HS Code field on each line item (Sales Invoice Item) is auto-filled using the following priority order:

1. Item-level Tax Template: if the item has a Tax Template with a TIMs HS Code, that value is used. HS Code Field
2. Item Group Tax Template: if the item-level Tax Template has no HS Code, the system looks at the Item Group's taxes table.
3. Manual Selection: if neither the item nor the item group has an HS Code configured, the field remains editable on the invoice line and the user can enter it manually.

This auto-population logic ensures that every line item sent to KRA via INCOTEX carries the correct HS Code, keeping you compliant with TIMs requirements.