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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / saudiarabia ZATCA impl...
Finance | Project Operations, Human Resources, ...
Suggested Answer

saudiarabia ZATCA implementation step by step configuration phase1

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Posted on by NR-09050605-0 34
Hello experts,
 
Anyone can help to ZATCA implementation for Saudi Arabia region.
 
Regards,
Narasimha J. 
Categories:
Dynamics 365 Finance
I have the same question (0)
  • Suggested answer
    Saif Ali Sabri Profile Picture
    Saif Ali Sabri 2,358 Moderator on at
    Here is a step-by-step solution for ZATCA Phase 1 (E-Invoicing) implementation in Microsoft Dynamics 365 Finance and Operations (F&O) for companies operating in Saudi Arabia.

    ✅ Objective

    Comply with ZATCA Phase 1 - Generation Phase requirements, which mandate electronic invoicing and specific data formats for taxable entities in Saudi Arabia.

    ✅ Prerequisites

    • Dynamics 365 Finance environment (version 10.0.17 or later)
    • Saudi Arabia localization enabled
    • Tax registration number (TRN) configured
    • Azure AD user with necessary privileges
    • LCS access for Regulatory Configuration Services (RCS)

    🔧 Phase 1: Configuration Steps in Dynamics 365 F&O

    1. Enable Saudi Arabia Localization

    • Go to Legal entities > Legal entity > Address and ensure country/region = SA (Saudi Arabia).
    • Ensure the Tax registration number (TRN) is filled in for VAT.

    2. Install Electronic Invoicing Add-ins

    1. Go to LCS > Project > Asset Library > Electronic Reporting configurations.
    2. Import the following:
      • E-Invoice (SA) model
      • E-Invoice model mapping
      • Sales invoice (SA) format
      • Credit note (SA) format
    You can also use RCS (Regulatory Configuration Services) to import these configurations.

    3. Set Up Electronic Reporting (ER)

    • Navigate to Organization administration > Electronic reporting > Configuration providers.
    • Set Microsoft or your own organization as the active provider.
    • Go to Electronic reporting > Reporting configurations to import formats listed above.

    4. Configure E-Invoice Parameters

    • Go to Accounts receivable > Setup > E-Invoicing > E-Invoice parameters (SA)
    • Set:
      • E-Invoice format = Sales invoice (SA)
      • Default model mapping = E-Invoice model mapping
      • Enable QR Code, UUID, and hashing if required.

    5. Set Up QR Code (Optional for Phase 1, but recommended)

    • Add a QR code control to the invoice print format.
    • QR data should follow ZATCA format (Seller name, TRN, timestamp, invoice total, VAT amount in base64 TLV format).

    6. Document Hashing (Recommended)

    • Ensure invoice hash is included in the layout.
    • Some ER formats already include this as a calculated field.

    7. Test the ER Format

    • Go to Accounts receivable > Invoices > All free text invoices
    • Create a new invoice and post it.
    • Click Print > Use ER format
    • Select Sales invoice (SA) format.
    Check:
    • XML output matches ZATCA Phase 1 structure.
    • QR code and hash values are visible if enabled.

    8. Training & Change Management

    • Train your users on:
      • Posting invoices electronically
      • Validating ER outputs
      • Ensuring all invoices include necessary ZATCA fields

    📄 Outputs Required by ZATCA Phase 1:

    • Electronic XML invoice (not mandatory to send to ZATCA yet)
    • QR Code on simplified invoices
    • Digital invoice archive

    📌 Notes:

    • Phase 1 does not require integration with ZATCA’s platform.
    • You only need to generate the invoice in ZATCA-compliant format.
    • All ER configurations can be updated later for Phase 2 - Integration Phase.

    📘 Reference Documentation:

  • A7 NPT Profile Picture
    A7 NPT 92 on at
    Does this require LCS Tier 2 env or can it also work on UDE?

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