Electronic invoicing

Requirement

E-Invoicing is mandatory as of December 4, 2021. As of 1 January 2023, all invoices must be reported digitally to the tax authority. It is an electronic invoice clearance model similar to Turkey and Italy.

Phase 1 - The generation phase is mandatory as of 4 December 2021. An invoice solution must generate e-invoices, debit and credit notes and include mandatory fields. Also, the solution must be able to keep record of these documents externally. Taxpayers must submit archived electronic documents when the tax authority requests them. For simplified e-invoices, a QR code will be mandatory.

Phase 2 - The integration phase is mandatory as of 1 January 2023. API integration and transmission of e-invoices and e-notes to the tax authority portal are mandatory. The official reporting format is XML, and businesses must clear these invoices through the Saudi tax authority's online portal before the invoices can be issued to customers

As a hybrid model, PDF documents embedded with XML will be optional for sending to the customers. Cryptographic stamps will be mandatory for simplified tax invoices. A QR code and UUID on all e-documents are mandatory.

M3 solution

Users can submit their invoices electronically in the required format using an integration with Infor Localization Services Platform (LSP).

Electronic invoices are handled using LSP and can be delivered using the FATOORAH e-Invoice format.

For each issued invoice and regardless of the invoicing function that is used, an invoice BOD is created by M3 and can be viewed by users in 'Invoice Header. Open' (CMS500). Then the invoice BOD is published and sent to LSP using ION.

These e-Invoices are automatically sent to the Saudi Arabian tax authority portal using the web services gateway. If the invoice sent has no issue, an .xml file is created with the status Registered.

If any issue is found, an .xml is created with any of the following statuses: Rejected, Failed or Not Transmitted.

When eInvoicing through LSP is used, any response from the tax authorities as to whether the invoice was accepted or rejected is received by LSP and is optionally returned to M3 using the ProcessInvoice BOD.

The ProcessInvoice BOD updates the invoices in M3 Business Engine using the API INVBODMI.

Limitations

These scenarios are not supported:

• Corrective invoices (created through OI20 invoice function) using corrective method 1.
• Manually created credit or debit note (created via AR20 invoice function) using corrective invoice method 1.
• Credit invoices (created through OI20 invoice function) using credit orders are not supported.

Configuration guidelines

Program ID	Program name	Description or comment
CMS500	Invoice Header. Open	All created and recreated invoices are displayed. See NCR 11227 for details about the process.

See "M3 configuration for electronic invoicing" in the Infor M3 Core Configuration Guide for Infor Localization Services Platform.