Navigating compliance excellence: A deep dive into ZATCA integration with Dynamics 365 F&O

Integrating Dynamics 365 with ZATCA: How does it work?

ZATCA provides a developer sandbox for businesses to test and transition their operations to production themselves, ensuring ZATCA e-invoicing compliance. However, this process comes with its own set of challenges:  

• Real-time validation of invoices is not possible without sending them to ZATCA for clearance and reporting.
• ZATCA only accepts XML in API requests and responses.
• Non-compliance may result in invoice rejection.
• Balancing core business operations and ensuring e-invoicing compliance at the same time can be time-consuming.

  To integrate Dynamics 365 Finance and Operations, Modern POS, and other applications with ZATCA without losing focus on your core business operations, it is recommended to partner with a ZATCA-approved solution provider like Confiz. Our team not only performs the integration but also guides and trains your in-house team, assists in onboarding devices and the FATOORA portal, ensures ownership and responsibility for invoice auditing, and provides ongoing support. Now let’s get into the steps for Dynamics 365 ERP integration with ZATCA:

Step 1: Systems analysis

The first step in the integration process involves analyzing your existing ERP system, which would be Microsoft Dynamics 365 Finance and Operations environment in this case. Confiz, your ZATCA e-invoicing solution provider, will delve into your ERP architecture, understand business requirements, and map operational workflows. We will then build a tailored integration process for your business based on the findings.

Step 2: Choosing the right B2B integration method

ZATCA offers direct API integration, supporting two efficient e-invoice generation modes:

• Real-time e-invoice generation with invoice posting.
• Bulk e-invoice generation for posted invoices.

  With Confiz’s ZATCA add-on, you can configure one or both of these e-invoice generation modes based on the nature and requirements of your business. Our certified D365 consultants are ready to assist you in selecting the right integration model, guiding you through the essential processes and configurations for a smooth and seamless integration experience.

Step 3: E-invoice generation

After completing the integration setup, in this crucial step, customer invoice data is exchanged and authorized with ZATCA in real time to generate e-invoices. The Confiz’s ZATCA add-on automatically establishes a connection between Dynamics 365 Finance and Operations and ZATCA, using your chosen e-invoicing generation system, such as Orchida.

Step 4: Validation and transmission

Next, Confiz’s ZATCA add-on verifies invoices generated by Dynamics 365 Finance and Operations, making sure they include mandatory invoice fields and structuring them in XML format. After this, it submits them to the e-invoice generation system, which communicates with ZATCA's e-invoicing system for approval and clearance. Upon the successful verification of the submitted invoices, the e-invoice is generated in real time. ZATCA then issues a unique UUID (Universal Unique Identifier) and a QR-Code, which are to be printed on the customer invoice. You can view an example of this in the screenshot provided above.