How to Stay Compliant with ZATCA E-Invoice Phase 2 in KSA Using SAP Business One

What is ZATCA E-Invoice Phase 2?

ZATCA introduced Phase 1 of e-invoicing in December 2021, which required businesses to generate and store invoices electronically. Phase 2, also known as the Integration Phase, is now being rolled out in waves starting from January 1, 2023. This phase mandates that businesses:

• Generate invoices in XML format as per ZATCA specifications.
• Include a QR code on each invoice for authentication.
• Integrate their systems with ZATCA’s Fatoora portal for real-time validation and submission.
• Ensure timestamping and cryptographic seals for security and audit compliance.

Who is Affected?

• Businesses operating in Saudi Arabia using VAT invoices.
• Companies generating invoices for B2B, B2C, and B2G transactions.
• Enterprises falling under ZATCA’s mandatory compliance waves.

Challenges Businesses Face in Achieving Compliance

Transitioning to Phase 2 compliance presents significant challenges, including:

• Manual Workload – Creating compliant invoices manually is time-consuming and prone to errors.
• Real-Time Submission Complexity – Businesses must integrate their ERP with ZATCA’s Fatoora system.
• Data Security Risks – Ensuring invoices are properly encrypted and validated is critical.
• Lack of SAP B1 Integration – Many solutions are not tailored to work seamlessly within SAP B1.

SEIDOR solves these challenges with a fully integrated, automated E-Invoice Phase 2 solution.

How SEIDOR’s E-Invoicing Solution Works with SAP Business One

Our E-Invoice Phase 2 solution for SAP B1 ensures complete compliance and eliminates manual efforts. It is a fully integrated SAP add-on that automates invoice generation, validation, and submission.

Key Features:

• Seamless SAP B1 Integration – Works directly within SAP Business One with no additional software required.
• Automated XML Invoice Generation – Ensures invoices are formatted per ZATCA’s requirements.
• Real-Time Submission to ZATCA – Direct API integration with Fatoora for instant compliance.
• QR Code & Cryptographic Seals – Ensures each invoice is verifiable and secure.
• Multi-Format Support – Generate invoices in both XML and PDF formats.
• Error Validation & Logging – Prevents submission failures with built-in compliance checks.

Visuals:

• Screenshot of SAP B1 invoice interface showing ZATCA compliance features.
• Infographic on how the solution connects SAP B1 to ZATCA’s system.

Benefits of SEIDOR’s E-Invoicing Solution

Our solution provides multiple advantages, ensuring your business remains compliant and efficient:

• 100% ZATCA Compliance – Avoid penalties and disruptions.
• Time & Cost Savings – Reduce manual work and streamline invoice processing.
• Data Security & Encryption – Protect sensitive financial information.
• Improved Business Efficiency – Automated workflow reduces errors and speeds up transactions. Local Support in KSA – Our experts assist with implementation and compliance.

Visuals:

Icons representing each benefit for easy readability.

How to Get Started with Seidor’s E-Invoice Phase 2 Solution

Getting compliant with ZATCA’s Phase 2 doesn’t have to be complicated. Seidor offers a simple 3-step process:

1. Request a Free Consultation – We analyze your SAP B1 setup and compliance needs.
2. Deploy & Configure the Solution – We integrate and test the add-on within your SAP environment.
3. Go Live with Full Compliance – Ensure seamless invoicing with real-time ZATCA validation.

Visual:

• Simple form for users to submit inquiries.

Conclusion

As Saudi Arabia moves towards a fully digital tax system, compliance with ZATCA’s E-Invoice Phase 2 is critical for businesses using SAP Business One. Seidor’s fully integrated e-invoicing solution ensures seamless compliance, reduces manual workload, and enhances operational efficiency.