Integration of Xero with EFRIS for Uganda Revenue Authority Compliance

The Client

Joseph runs an accounting and bookkeeping agency in Kampala, Uganda. He managed approximately 40 clients using Xero as Accounting software; they needed a solution to comply with the Uganda Revenue Authority’s (URA) fiscal policies. Joseph started to look for a company specializing in Custom Xero integration and can develop a middleware integration between Xero and URA’s Electronic Fiscal Receipting and Invoicing System (EFRIS).

The Challenge

With the introduction of Uganda’s EFRIS system, businesses were required to submit real-time fiscalized invoices to the URA. Joseph faced multiple challenges:

• Migration of existing client data into the new system.
• Ensuring that all invoices created in Xero were immediately uploaded to EFRIS for Fiscalization (a system that ensures the accuracy and transparency of business transactions through the use of software and cash registers that generate tax documents and report sales).
• Both systems (Xero and EFRIS) needed to remain synchronized for real-time invoicing.
• Compliance with URA’s policies, including showing the Fiscal Document Number, Verification Code, and QR code on all invoices.
• Managing the long and tiresome process of fixing errors using credit notes, since EFRIS doesn’t let you delete invoices.

The Solution

Satva Solutions worked with the Uganda Revenue Authority team to understand the hosting and security requirements required to establish the API Integration. After a couple of meetings, our team was ready with the scope of work, and integration architecture for system-to-system integration.

We developed the following key features (entities) for the EFRIS XERO integration:

• Data Synchronization: Synchronization of Customers, Products, Inventory Levels, Invoices, Credit Notes, Debit Notes, purchase orders, and bills from Xero to EFRIS eliminates manual data entry in the EFRIS system.
• TIN-Based Retrieval: Ability to retrieve customer details based on TIN (Taxpayer Identification Number). For an invoice to go to EFRIS from Xero, the Xero record must have a TIN. EFRIS picks the TIN and populates the name from the taxpayer database.
• Synchronization Logging: Providing a facility for every transaction in middleware for audit and troubleshooting.
• Invoice Emailing: Emailing the customer an EFRIS-generated invoice, which contains important fields like Fiscal Document Number, Verification Code, and QR code.
• Invoice Approval Workflow: Synchronizing invoices only when the invoice was approved in Xero.

By implementing these features, Satva Solutions ensured complete automation and error-free compliance for Joseph’s accounting and bookkeeping agency.

Results

The integration between Xero with EFRIS delivered a significant boost to Joseph’s business and his clients:

• Replication of transactional Data to EFRIS was handled by Integration Middleware, which cut the time of manual entry to zero.
• Joseph was able to charge small fees to each client, including his markup for maintaining this integration service, which helped boost his revenue.
• His clients were happy that Joseph was able to handle the URA’s compliance and help clients focus on their business. This increased his value in front of the client.
• With the inclusion of important fiscal fields (Fiscal Document Number, QR Code, Verification Code) on Xero invoices, Joseph’s business was fully compliant with URA’s electronic invoicing mandates.

Key Metrics:

• 100% time saved by elimination from manual import and export.
• 100% compliance accuracy with URA regulations post-integration.
• 80% fewer errors in customer information and invoice creation due to automated TIN retrieval.

Conclusion

With the successful custom Xero Integration with EFRIS, Joseph’s business is now fully compliant with URA’s electronic fiscal invoicing requirements. The automation of invoice creation, synchronization, and customer data retrieval has resulted in significant time savings and improved operational efficiency. This seamless integration allows Joseph to focus on growing his business, with the confidence that his invoicing process is fully compliant and streamlined.

If you are looking to integrate EFRIS with Xero, SASBUZ, SAGE 200, QuickBooks, SAP Business One, Odoo, Tally, or Oracle, our tailored Accounting & ERP integration solutions can help you achieve compliance effortlessly while optimizing your operational efficiency.