SAP E-Invoicing Solution for Saudi Arabia (KSA)

[former_member752451]

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:

• You can check the Legal Change Notification App for the solution release details


• You can check our MENA Localization SIG for more information about the solution and implementation guide
  
  

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

 

[aamna]

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

[former_member752451]

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

• Legal Change Notification App 


• MENA Localization SIG 

regards, Latif

[former_member769199]

Thanks Mohamed.

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

Regards,

Shahed

[former_member752451]

Hi Khan,

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

Thanks,

[aamna]

Hi Sir,

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

• Legal Change Notification App

This is the page which is displayed

[former_member752451]

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,

[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:

• Announcement of Legal Changes pdf


• Announcement of Legal Changes – Get Help Right Where You Need It


• How to find legal changes using the Announcement of Legal Change application

Best Regards,

[aamna]

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

[ShrinivasSaware]

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

[former_member752451]

Hi Khan,

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

[aamna]

Please help me solve this error

While implementing 2927542 we get the error as in attachment ERR1

It says the missing object

[aamna]

Hi Guys,

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

[aamna]

How to convert XML format to UBL format

[former_member752451]

Hi,

To get the right support, you can raise an incident

Component

CA-GTF-CSC-EDO ( Document Compliance Framework )

[sitesh_161]

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...

[lnarayana2008]

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

 

[former_member752451]

Hi Lakshmi,

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

Regards,

Latif

[sitesh_161]

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

[aamna]

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

 

[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,

[lnarayana2008]

Dear All,

 

Greetings!!

 

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

 

Regards,

Lakshmi Narayana

[aamna]

Where shall I do  that mapping

Wt is the tcode used for mapping

[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.

[former_member574891]

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?

[aamna]

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

[former_member752451]

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

[arvindumarani]

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

[former_member752451]

Hi Behera,

Please refer to this documentation

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

 

Regards,

[former_member752451]

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

 

[former_member752451]

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,

 

[arvindumarani]

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

 

 

 

 

 

[aamna]

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

 

[ShrinivasSaware]

Please Generate XML in edoc_cockpit then QR code generates

[aamna]

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

 

[arvindumarani]

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

 

[arvindumarani]

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

 

 

[rameshg]

Hi

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

[itsapteam]

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

[wnash7658]

His Mohamed, Access denied.

[former_member752451]

https://workzone-core.one.int.sap/profile/1H2932eUJcj2NMPjVOZxLD/documents/PIGAHCc5gMINSiDTaQz8YC/ve...

[Hunain1]

Dear Abdul Latif

 

Access Denied.

 

Regards

Hunain

[former_member752451]

Hi Hunain,

the access already provided to you

Best regards,

[Hunain1]

Thanks Mohamed.

Got that.

Regards

Hunain

[AnasMoJAli]

Thanks, Mohamed for the information!  I am more interested in understanding the business process change after this. Before SAP DRC, the end user posts the invoice, then prints it in pdf. After the DRC, there is one additional step. The end user posts the invoice, then go transaction code EDOC_COCKPIT to generate the e-invoice and print it. I am wondering if SAP considering a solution that automates this additional step. Meaning, once the end user posts the invoice, everything happens automatically in the background so that the end user goes back to the old business process step (i.e. post the invoice and print it from the same S/4 HANA screen).

[vijaymuppala]

Hi Mohamed,

On a different note seeking your kind help ,

We are doing  green field from ECC to S/4 HANA 2021 cloud. We did all the notes applied and manual config, still we have 2 issues

1. Not finding SUBMIT button


2. XML is not generating once we click button Generate XML.

Your kind advise is greatly appreciated .

Thanks

Vijay M

 

 

 

[former_member752451]

Dear Vijay,

This needs to be checked. you can raise an incident to the component “CA-GTF-CSC-EDO-SA”. The support team will check and provide the necessary support

Best regards,

Mohamed Latif

 

[MuhammadZohaib]

Dear all,

Facing an error in e-invoice processing KSA-72

For supply date and supply end date can anyone help how it is mapped and how we can resolve this error.

Thanks in advance. 

[Khalifa]

Dear @MuhammadZohaib 

The Supply Date and Supply End Date in our local version for Saudi Arabia are mapped to the Actual Goods Issue Date in the billing document.

For the KSA business rule (BR-KSA-72), please note that when generating an e-invoice for a simplified or summary invoice (standard tax invoice type), the XML e-invoice must include both dates. In the case of Credit and Debit notes, these dates are considered the original Actual Goods Issue Date in the reference billing document. I hope this information helps!

Best regards,