SEPAM E-Invoicing & ZATCA Phase 2 Integration

Overview

SEPAM / PM&C Saudi Arabia Co. Ltd.

SEPAM and PM&C Saudi Arabia Co. Ltd. operate in electrical and mechanical contracting, technical support, and services. PM&C Saudi Arabia Co. Ltd. is mentioned as a subsidiary of SEPAM, and the project was later extended to Sepam Saudi Arabia Co. Ltd.
Client:

SEPAM / PM&C Saudi Arabia Co. Ltd.

Location:

Al Khobar, Kingdom of Saudi Arabia / Doha, Qatar

Industry:

Electrical & Mechanical Contracting / Technical Support & Services

Size:
Duration:

November 2021 – February 2022

Type:

ERPNext E-Invoicing & ZATCA Phase 2 Integration

SEPAM E-Invoicing & ZATCA Phase 2 Integration 1

01

The Challenge

SEPAM needed a dedicated e-invoicing solution that could generate invoices according to their required format while supporting VAT, retention, currency, and compliance-related requirements.

The client’s existing process required manual entry of VAT and retention values. Their invoice format also needed a 10% retention amount, USD currency handling, custom naming series, and additional customer contract details. Later, SEPAM also required testing and preparation support for ZATCA Phase 2 compliance.

Key challenges included:

  • Existing ERP was used for entry maintenance, but not for dedicated compliant invoice generation.
  • VAT and retention values were being handled manually.
  • Invoice format required a 10% retention amount.
  • Currency values were appearing in SAR while the client required USD.
  • Customer records needed additional contract-related details.
  • ZATCA Phase 2 testing and compliance validation were required.
  • SSL and secure access setup were needed for the updated system.
SEPAM E-Invoicing & ZATCA Phase 2 Integration 2
SEPAM E-Invoicing & ZATCA Phase 2 Integration 3

Our Solution

StandardTouch customized the ERPNext/Frappe-based e-invoicing system to meet SEPAM’s invoicing and compliance requirements.

  • Added a retention field and configured 10% retention calculation in the invoice format.
  • Configured invoice naming series starting from APJ/LAB/INV/143.
  • Fixed automatic VAT and retention calculations to reduce manual work.
  • Customized billing calculations and invoice print format layout.
  • Renamed Tax ID to VAT ID as per the client’s requirement.
  • Added borders and improved formatting in the invoice print format.
  • Added a contract number field in customer creation.
  • Installed SSL certificate and updated the system URL from HTTP to HTTPS.
  • Connected the ERP system with ZATCA’s Fatoorah portal for Phase 2 testing.
  • Provided invoice creation recording, credit note guidance, and testing support.

02

Tech Stack

ERPNext
Frappe Framework
Frappe Cloud
ZATCA Fatoorah Portal
SSL Certificate
Custom Print Format

Services

E-invoicing solution implementation
ERPNext/Frappe customization
invoice format customization
VAT and retention automation
ZATCA Phase 2 integration support
print format customization
SSL setup
customer field customization
testing
training video support
issue resolution
SEPAM E-Invoicing & ZATCA Phase 2 Integration 4

Live Preview

The Impact

Quantifiable Results

E-Invoicing Demo

Requirement stage → Demo completed on December 5, 2021

Pending Tasks

Open implementation tasks → Completed by December 8, 2021

VAT & Retention

Manual entry → Auto-calculation fixed on February 14, 2022

System Access

HTTP URL → SSL-enabled HTTPS URL

ZATCA Testing

Preparation stage → Test invoices successfully passed by ZATCA

Customer Testing

No success validation → Two customers received success messages

KBR Invoice Test

Pending validation → Successful ZATCA status code 200

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