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Author's profile photo MOHAMED ABDUL LATIF

SAP E-Invoicing Solution for Saudi Arabia (KSA)

All resident taxable persons in KSA are subject to the electronic invoicing regulation. They must issue electronic invoices along with electronic notes for all their transactions which require the issuance of tax invoices.

Saudi Arabia’s Zakat, Tax, and Customs Authority (ZATCA) have published e-invoicing requirements that will be rolled out into two main phases in KSA:

  • Phase One – Generation of Electronic Invoices and Electronic Notes is enforceable as of December 4, 2021. It will require a person subject to the E-Invoicing Regulation to generate and store compliant tax invoices and notes using compliant electronic systems.
  • Phase Two – The Integration Phase on the transmission of Electronic Invoices and Electronic Notes is enforceable starting from January 1, 2023, and implemented in waves by the targeted taxpayer groups.

SAP developed a KSA localized E-Invoicing solution for Phase One on top of SAP Document Compliance for SAP ECC and S/4HANA core modules (FI, SD, MM).
 

What should you know?

You as a taxable person in KSA and subject to E-Invoicing Regulation must note the following:

  • You must share with the buyer the Tax Invoice or its associated Notes (Credit/Debit Note) that have been electronically generated.
  • You must present to your customers a printed copy of the Simplified Tax Invoice or its associated Notes that have been generated electronically.
  • You can share with the buyer an electronic format or any other human-readable format of the Simplified Tax Invoice or its associated Notes upon the agreement between the transaction parties.
  • You must generate a QR code for Simplified Electronic Invoices and associated Notes (QR code is optional for Standard Electronic Invoice and its associated Notes for Phase One).
     

How SAP helps customers to be compliant with E-Invoicing Regulation for KSA for Phase One?

The key reasons to implement SAP E-Invoicing solution for Phase One are as follows:

  • Allows you to be compliant with the specifications and requirements set forth under
    the e-Invoicing Regulation after verifying its conformity to all specifications and requirements by
  • Helps you to generate Electronic Invoices and their associated Notes in XML format as per the Provisions of the E-Invoicing Regulation.
  • Helps you to generate the QR code and be embedded in the XML format.
  • Allows you to extract the QR code using printing programs (such as PDF Forms). This helps the customer to utilize any format as a human-readable format to share the Tax Invoice (printed QR code) with buyers.
  • Allows you to share/send the generated XML file with the buyer via email or any other electronic channel.
  • Saves your time in your implementation project for Phase Two, focusing on integration requirements only. 

Note:

Give us your feedback
To ensure that we’re covering what you need, please leave your feedback at the bottom of this blog post!

Regards,
Mohamed Latif, Ahmed Khalifa

#SAPGoGlobal #SAPLocalization

 

Assigned Tags

      38 Comments
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      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      How to generate Electronic Invoices and their associated Notes in XML format as per the Provisions of the E-Invoicing Regulation of Saudi Arabia

      Please elaborate on any notes which are to be implemented

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Khan,

      The implementation notes will be available after the release of the solution on 30th Sep 2021.

      You can check the below links to get the notes

      regards, Latif

      Author's profile photo Shahed Khan
      Shahed Khan

      Thanks Mohamed.

      Will it be a separate license cost for e-invoice implementation?

      Regards,

      Shahed

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Khan,

      Yes, the license will be needed. You can check with your SAP AE

      Thanks,

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Hi Sir,

      How can we come to know which notes are released because when i enter below link

      This is the page which is displayed

       

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Khan,

      SAP is offering one App Legal Change Announcement on ONE Support Launchpad that provides information and updates on the current and upcoming legal changes for all products and components. You can register to receive news and notification.

      https://launchpad.support.sap.com/#/legalchangenotification

      To reach to required notes, you can limit your search and filter by your country, component, product

      Thanks,

      Author's profile photo Ahmed KHALIFA
      Ahmed KHALIFA

      The Announcement of Legal Changes product page provides an overview of the main features of the app, what’s changed from one release to the next, and all related news from the Community

      Related content:

      Best Regards,

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      They are different notes which should be implemented for E-invoice

      Can you please help with the sequence of notes along with its pre-requisites

      Author's profile photo Shrinivas Saware
      Shrinivas Saware

      Hello AAMNA,

      We have implemented SNOTE as per the below sequence. Some SNOTE are required Edocument framework and some are required KSA  eInvoice solution. SNOTE also depends upon your SAP Release.  Wishing you good luck.

      2778582
      2790500
      3007907
      3009364
      3015343
      3020316
      3034827
      3035087
      3054055
      3067266
      3071930
      3084687
      3095264
      3095265
      3095273
      3108133
      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Khan,

      Please refer to master note 3095262 - SAP Document Compliance Saudi Arabia: eInvoicing.

      Author's profile photo AAMNA KHAN
      AAMNA KHAN
      Please help me solve this error
      While implementing 2927542 we get the error as in attachment ERR1
      It says the missing object
      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi,

      To get the right support, you can raise an incident

      Component CA-GTF-CSC-EDO ( Document Compliance Framework )
      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Hi Guys,

      How to convert XML format to UBL format  in SAP system.

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      How to convert XML format to UBL format

      Author's profile photo sitesh Behera
      sitesh Behera

      Hi Latif,

      How to generate QR code in e-invoice or How to embedded QR code in XML file? Any SAP notes for reference..

      Waiting for you response...

      Author's profile photo Lakshminarayana Mulukala
      Lakshminarayana Mulukala

      Hi Latif,

      thanks for the detailed documentation and explanation.

      we have implemented all the notes but are not able to view the QR code, kindly advise any specific notes or configurations to be implemented.

       

      Regards,

      Lakshmi Narayana

       

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Lakshmi,

      The QR Code is not visible, it is embedded in the XML in the filed EDOSAINV-QR_CODE

      Regards,

      Latif

      Author's profile photo sitesh Behera
      sitesh Behera

      Hi Latif Sir,

      How could we decode the embedded QR code which is available in EDOSAINV-QR_CODE? or How to extract the information from EDOSAINV-QR_CODE?

      Currently after extracting we can generate the QR code but after scan we are getting the same embedded string..

      Any approach to extract or decode the information from the embedded QR code?

      Thank you.

      Regards,

      Sitesh

      Author's profile photo Lakshminarayana Mulukala
      Lakshminarayana Mulukala

      Dear All,

       

      Greetings!!

       

      I am also facing the same issue, Kindly give inputs on the above request.

       

      Regards,

      Lakshmi Narayana

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Behera,

      Please refer to this documentation

      https://jam4.sapjam.com/groups/aDJPUFaeB2noMhwk999hKH/documents/PIGAHCc5gMINSiDTaQz8YC

       

      Regards,

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Hi Guys,

      While generating the E-invoice i am facing the below error can anyone tell what are the fields i missed and where to fill those fields

       

      Author's profile photo Ahmed KHALIFA
      Ahmed KHALIFA

      Hi AAMNA KHAN,

      You need to maintain the Value Mapping ‘TAX_CATEGORY’ as below, you can assign multiple tax codes for each tax category

      Tax category   SAP Tax code
      E Exempt from Tax ?
      S Standard rate ?
      Z Zero rated goods ?
      O Services outside scope of tax / Not subject to VAT ?

      Regards,

       

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Where shall I do  that mapping

      Wt is the tcode used for mapping

      Author's profile photo Ahmed KHALIFA
      Ahmed KHALIFA

      please check the manual post implementation steps in SAP note 3095265 and follow below steps to maintain values for Tax Category and Nominal Invoice Indicator in the AIF Value Mappings.

      1. Execute transaction /n/AIF/VMAP
      2. Enter Namespace as ‘/EDOSA’
      3. Enter Value Mapping as ‘TAX_CATEGORY’
      4. Enter Database Table Type as ‘M’
      5. Enter Value Mapping Type as ‘M’
      6. Click on Execute button
      7. Click on Edit button
      8. Click on Append/Create button and select no of lines to be added
      9. Assign the required value of Tax Category with Tax Code for your business scenarios
        • The Tax codes are any of sales and purchase tax codes in your system which must be defined for any of the tax scenarios/categories required by ZATCA, for example
          • S0 exempted tax code
          • S1 Zero tax
          • .....
      10. identify which Tax Code for Nominal supplies (if applicable) and enter "x" 
      11. Click on Save button to save the entries.
      Author's profile photo Javed Parvez
      Javed Parvez

      HI All,

       

      I am printing the QR code for the simplified invoices. However, Whenever we read the QR using the application it says invalid QR. Please suggest the application that should be used for verifying the QR and let me know if the QR in EDOSAINV-QR_CODE field can directly be printed?

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Parvez,

      For more information about the QR Code generation, please refer to the documentation:

      https://jam4.sapjam.com/groups/aDJPUFaeB2noMhwk999hKH/documents/PIGAHCc5gMINSiDTaQz8YC

      For QR Code validation, you can test it using ZATCA SDK toolbox.

      You need to download it and follow the readme notes to validate the QR code.

       

       

      Regards,

       

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Hi Guys,

      I posted credit note using T.Code(FB75)  and while executing EDOC_COCKPIT I ma facing the below error.

      Reference field in document header is filled but still error is not been resolved

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Khan,

      Invoice Document Reference is mandatory for Credit/Debit Notes and it is populated
      for based on the source document.
      - SD Reversal Document : Document number of Reference document (field VBAP-VGBEL)
      - SD Credit/Debit Note: Sales Document Header Customer Reference (VBAK-BSTNK).
      - FI Reversal/ Credit note: Document No. of the Invoice to which the transaction belongs from
      the Accounting Document Item segment (field BKPF-BELNR

      Regards,

      Latif

      Author's profile photo Arvind Umarani
      Arvind Umarani

      Hi Latif

       

      Specific to Tax Invoice compliance for Phase I (04/12/2021):

      1. Is it mandatory to generate XML to be compliant if we are already using SAP ERM and invoicing is done through billing process
      2. How do we cover the output (PDF, Print Outs of Invoice) changes mandated  for Phase I requirements mandated?

      Kind regards

      Arvind

       

       

      Author's profile photo MOHAMED ABDUL LATIF
      MOHAMED ABDUL LATIF
      Blog Post Author

      Hi Arvind,

      The XML is not mandatory in phase 1 but is mandatory in phase 2

      No required invoice format in phase 1 as long as the required data mandated by ZATCA are present in the Invoices

      Regards,

      Latif

       

      Author's profile photo Arvind Umarani
      Arvind Umarani

      Hi Latif

      Thank you very much for quick response.

      Need some clarity around the Phase I solution built for KSA e-Invoicing on the top of SAP Document Compliance. What will be achieved post implementing this as we are already on SAP ERP and as you mentioned if we take care of existing smart form delta changes through ABAP, then do we really need to complete the required solution notes and config to be system compliant.

      Also specific to date format mandated by ZATCA is YYYY:MM:DD and currently SAP ERP and smart forms shows date as DD:MM:YYYY? is this date formatting changes part of eDocument customizations and xml generation?

      Thanks very much!

      Regards

      Arvind

       

       

       

       

       

      Author's profile photo Arvind Umarani
      Arvind Umarani

      Hi Latif

      Appreciate your response on above query and also let me know about the planned release to customers for Phase II solution (ZATCA integration).

      Regards

      Arvind

       

      Author's profile photo Arvind Umarani
      Arvind Umarani

      Hi Latif

      As per Article 53 (5) of KSA VAT Implementing, the tax invoices issued should be in Arabic. Further, as per E-invoice resolution the invoices issued from the billing system should be tamper proof and non editable. Hence to comply with VAT and E-invoicing regulation, it is a requirement that the E-invoices issued from your billing system should be in Arabic language in addition to any other language.

      I kindly request you to confirm is this functionality for the tax invoices in Arabic is taken care in this localized solution?

      Kind Regards

      Arvind

       

       

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      Hi guys,

      I have implemented all the notes in S4 hana and i am getting the output as below, i am just having doubt that is the QR field correct or not

       

      Author's profile photo Shrinivas Saware
      Shrinivas Saware

      Please Generate XML in edoc_cockpit then QR code generates

      Author's profile photo AAMNA KHAN
      AAMNA KHAN

      After generation of edocument in T.CODE EDOC_COCKPIT above output has been generated

       

      Author's profile photo Ramesh Ganapathy
      Ramesh Ganapathy

      Hi

      Now ZATCA has provided the sandbox facility to validate the QR code which is generated

      Author's profile photo SUPPORT TEAM
      SUPPORT TEAM

      Please Advice For ZATCA Portal can be directly accessed or through some middleware (third party)