What can you achieve with it?

• Complex commercial invoices with multiple charge types generated accurately and automatically • VAT treatment applied consistently — no under-declared VAT, no non-compliant invoices • Quarterly billing cycles supported natively — no missed billings, no manual calendar reminders • Input and output VAT reconciled in one report — KRA filing backed by actual transaction data • Service charge collected and tracked separately from base rent — useful for service charge audits • Commercial tenants receive professional, KRA-compliant invoices that support their own VAT claims

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Commercial PropertyCommercial Real Estate

How Commercial Building Managers Handle Complex Lease Billing with Multiple Charge Types

Who this is for

You manage an office building, retail centre, or commercial complex where tenants pay base rent plus service charge, and some pay VAT on top. Billing cycles vary: some tenants pay monthly, some quarterly. Creating individual invoices manually each cycle — with the right amounts, the right VAT treatment, and the right due dates — is error-prone and time-consuming.

The problem

Commercial leases are more complex than residential ones. A tenant might pay KES 150,000 base rent, KES 25,000 service charge, and 16% VAT on both — a single billing event that requires creating multiple line items and applying the correct tax treatment. Do this incorrectly, and you either under-collect or issue a non-compliant VAT invoice that creates problems for the tenant's input VAT claim.

The quarterly billing problem adds another layer. A tenant who pays quarterly needs to be invoiced at the right time, for the right period. If your billing system doesn't support variable cycles, you're manually tracking due dates in a calendar and creating invoices by hand — a reliable source of missed billings and disputed invoice dates.

What you can achieve

Complex commercial invoices with multiple charge types generated accurately and automatically
VAT treatment applied consistently — no under-declared VAT, no non-compliant invoices
Quarterly billing cycles supported natively — no missed billings, no manual calendar reminders
Input and output VAT reconciled in one report — KRA filing backed by actual transaction data
Service charge collected and tracked separately from base rent — useful for service charge audits
Commercial tenants receive professional, KRA-compliant invoices that support their own VAT claims

The Kokodi workflow

1
Step 1
Configure commercial unit with custom billing
Setup
Set the unit type as commercial, define the rent amount, service charge amount, billing cycle (monthly or quarterly), and whether the tenant is VAT-registered.
2
Step 2
Assign VAT tax code to applicable charges
Setup
Configure the VAT rate (16% standard or 0% exempt) at the unit level. Kokodi applies it to all generated invoices automatically — no manual tax calculation.
3
Step 3
Invoice generated on billing date
Automated
On the billing date, Kokodi generates the invoice with base rent, service charge, VAT, and the correct billing period. A KRA-compliant invoice with your PIN and the tenant's PIN.
4
Step 4
Tenant receives and pays via portal
Automated
The commercial tenant receives the invoice by email with a direct portal link. They can pay by bank transfer and upload a remittance, or you record the bank receipt manually.
5
Step 5
GL posts rent income and VAT liability separately
Automated
On payment, the GL separates base rent to income (Account 4010), service charge to income, and VAT to output VAT liability (Account 2050). No manual journal needed.
6
Step 6
VAT summary report for KRA filing
Report
Run the VAT Summary Report to see total output VAT collected in the period and total input VAT on purchases. Net VAT payable ready for KRA filing.

Kokodi features used

VAT Tax Code ConfigurationService Charge BillingQuarterly Billing CyclesAutomated Invoice GenerationVAT Summary ReportGL Engine (VAT Separation)Tenant Portal