On December 4th, 2020, The Zakat, Tax and Customs Authority, formally known as the General Authority of Zakat and Tax (GAZT) issued its new e-invoicing (FATOORAH) regulations. All businesses and individuals subject to VAT are required to develop systems that generate and store e-invoices before December 4th 2021. Saudi Arabia plans to adopt international practices and increase compliance with tax obligations through the new e-invoicing mandate. The kingdom also hopes to reduce the shadow economy and commercial concealment through this new rule.
All those subject to VAT will have to issue and store e-invoices in a structured format compliant with the new regulation. Third-parties who are issuing tax invoices on behalf of residents are also required to comply with the new e-invoicing regulation.
What is an electronic invoice (FATOORAH)?
According to the law, an electronic invoice (e-invoice) is an invoice generated and stored in a structured electronic system with all the tax invoice requirements. Any hand-written or scanned invoices are not considered e-invoices. E-invoicing solutions must be tamper-proof, and appropriate controls should be implemented to ensure data integrity. It should also be able to integrate into external systems via Application Programming Interface (APIs).
Learn more about E-invoicing
Digitize your invoicing process with Abacus & SAP
Abacus can help simplify the creation and management of purchase orders and invoices to streamline your entire financial operations in compliance with the new e-invoicing regulations. Our years of experience and award-winning implementation team have allowed us to lead digital transformation in the MENA region since 2017. Our deep industry knowledge and Gold Partnership with SAP provide your business with solutions specifically designed for your industry.
Manage all your financial transactions within a centralized ERP system and easily manage your general ledger, journal entries, budgeting, account setup and maintenance.
Create price quotes, enter customer orders, set up deliveries, update inventory balances, and manage all invoices and accounts receivable.
Save time by directly connecting with your bank to reconcile collections and payments.
Gather a range of profitability, ageing, budget reports, balance sheets, multi-period comparisons, and other financial reports.
Digitize your invoicing process
With SAP, you can create and share e-invoices as all of your customer details, product and service information is available within a centralized system. You can also share invoices with your customers directly from the system.
Unified invoicing and accounting for your business
Easily track customers with unpaid invoices and automate reminders based on length of delays, payment terms or the amount due.In-built invoice verification
With this feature, the application allows employees to create digital invoices with or without a reference to a purchase order.Duplicates and Variances:
The solution matches references, identifies duplicates, and detects variances in electronic invoices. Human intervention is only required when an exception occurs.Standardized pricing:
Define price lists with flexible pricing policies to calculate approved prices and discounts for quotes, orders and invoices.AR invoice and payment:
Create an invoice and receipt in one step by using information from the same document.
Use multiple currencies for accounts payable and accounts receivable.Tax Management:
Easy automation of VAT changes and tax calculation on goods and services. It also offers structured withholding tax processing.Batch Processing of Invoices:
Create multiple account receivables and payable e-invoices automatically in batches.Process Accounts Payable:
Manage invoices, cancellations and credit memos with a PO reference, plan your material needs and schedule purchases accordingly.Procure-to-Pay cycle:
Manage the entire procurement cycle from requesting vendor quotes to purchasing requests and paying vendors.AR credit memo
Readily import data from the original invoice when creating a credit memo for returned merchandise.
RISE with SAP: Business Transformation as a Service
RISE with SAP offers a simplified on-your-terms and on-your-timelines transformation path to an intelligent enterprise. Abacus and SAP together bring a tailor-made solution based on your unique requirements; all without high upfront investments and with reduced TCO, faster time to premier value, and the flexibility you need to thrive in a dynamic world.
Abacus and SAP together can help you chart a course to holistic business transformation:
Building Your Intelligent Enterprise
Accelerate your journey to become an Intelligent Enterprise with:
- The best-of-breed cloud infrastructure providing a native cloud landscape powered by SAP and Abacus.
- SAP Business Technology Platform easily complements, extends, and integrates with any other SAP, Abacus, or a third-party solution, using the same data model and business services as SAP applications.
- SAP S/4HANA Cloud suite to be agile and responsive — not only at the edges but also at the core.
- A solid foundation supporting ongoing business transformation for your people
- Expansion of your ERP footprint with additional core functions from modular cloud ERP and next-generation industry practices of your choice
Business Process Redesign:
Business Process Intelligence (BPI) analyzes how your processes perform, gives tailored recommendations, and benchmarks them against industry standards.
Tools and services from SAP to support your entire journey, augmented by SAP’s strong ecosystem.
Manage your business finances with SAP ERP systems
Explore SAP ERP systems to find out which option is the best fit for your business.
Streamline all your financial operations in one single solution to enhance your growth, profit and efficiency.What you can do:
- General ledger and journal entries
- Basic cost accounting and monitoring project costs
- Basic budget management
- Banking and bank statement processing
- Financial statements and reporting
- Sales tax and VAT
- Multicurrency support
Get a clear view of your operations and streamline all your business processes purely on the cloud, increasing performance and reducing costs.What you can do:
- General ledger management
- Fixed-asset accounting
- Inventory accounting
- Management accounting
- Payables and receiving processing
- Payment and liquidity management
- Tax management
- Expense and reimbursement management
Deliver powerful insights into your company’s financial status and profitability with SAP S/4HANA, designed to drive accuracy and accountability.What you can do:
- Order-to-cash Cycle
- Procure to Pay Cycle
- Credit evaluation and management
- Electronic invoicing and ZATCA compliant
- Working capital management
- Dispute resolution
- Collections management
Enabling hundreds of businesses to achieve accelerated financial transformation
Implementing SAP Business One has helped Ameesa Medical Instruments prepare fully customized financial reports five times faster compared to when they were running a legacy system.
Pillars Electromechanical is smoothly managing its business processes across all departments with SAP Business One.
Find out how Al Essa implemented SAP Business One to replace legacy systems and fully control each country’s operations through SAP Business One.