Most business owners in Israel hear about the open format for the first time when someone asks them for a file in it, usually their accountant or the Tax Authority. It is not a report you run every month, so it is easy to forget when choosing software. In practice, though, it is one of the basic requirements of computerized bookkeeping software in Israel: the ability to export all its data to files in a layout the Tax Authority defined, so the data can be read regardless of which software produced it. Below: what the open format is, what BKMV means, and why it matters when an Israeli store chooses its software.
What is open format
Open format is a specification set by the Israel Tax Authority for exporting a business's bookkeeping data to files in one fixed layout.
- Who must produce it: computerized bookkeeping software that meets the rules.
- When it is requested: usually when the Tax Authority asks for your books, for example in an audit.
- What it is not: a CSV export or a spreadsheet assembled by hand.
How the open format works
The Israel Tax Authority published a fixed specification: which fields each record holds, in what order and in what format. Every bookkeeping program that meets the rules can take its data, such as documents, transactions and accounts, and write it out to the specification. The result is files that look the same whichever software produced them.
What BKMV means
- BKMVDATA: the main data file, which is why accountants and developers refer to the whole thing as "BKMV".
- Header file: a small file describing the business and the contents of the export.
Benefits of the open format
- For the Tax Authority: it can examine any business's data with the same tools.
- For the business: some software can import such a file, so it is sometimes used to move data when switching programs. Ask the vendor whether that is possible before you plan a move.
Open format for an online store
An online store issues a lot of documents, sometimes hundreds a month. In Israel, all of them need to live in software that can export them in the open format. When you choose invoicing or accounting software, ask two questions:
- Is the software registered with the Tax Authority?
- Can it produce an open-format file without a support ticket?
The rest of the questions are in our guide to accounting software for online stores.
What the file leaves out
- Orders left in the store without a document.
- Refunds without a credit note.
- Invoices issued outside the software.
The file reflects only what was recorded in the books, so it is exactly as good as the connection between your store and your invoicing software. If there is a gap between store orders and issued documents, better to find it in your own monthly check than in an audit.
Common mistakes
- Issuing invoices outside the software. A document typed in Word or Excel will not be in the file, and will be missing from the books.
- Choosing software without checking registration. Cheap software that does not meet the rules looks fine until the day someone asks it for the file.
- Confusing a CSV export with the open format. Most systems export lists to Excel. That is useful for work, but it is not the file the Tax Authority asks for.
Related terms
- Allocation number: the open-format file includes all of a business's tax invoices, including those that received one.
- ERP: large suites usually include an accounting module, and the export comes from there.
Open format and StoreChart
- Not included: StoreChart does not keep books and does not produce open-format files. Your accounting software does that.
- CSV export: StoreChart exports lists of orders and customers to a CSV file in reports and exports, for example so your accountant can check orders against the documents issued.
- Supplier invoices: StoreChart collects supplier invoices from Gmail in the expenses module.
Frequently asked questions
When do you need to produce an open-format file?
Usually when the Israel Tax Authority asks for your books, for example in an audit. Most businesses never produce one on an ordinary day, so it matters to know in advance that your software can do it, rather than finding out when someone asks.
Is there an equivalent outside Israel?
Several countries have their own standard audit files for accounting data, each with its own specification. The open format is the Israeli one, and it applies to bookkeeping software used by Israeli businesses.
Does StoreChart produce open-format files?
No. StoreChart does not keep books and does not produce open-format files; your accounting software does. StoreChart exports orders and customers to a CSV file, which is meant for working and checking, not for reporting to a tax authority.