Microsoft Dynamics Integration with ZATCA for Phase Two in Saudi Arabia

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Integration for Phase Two with ZATCA remains the top priority companies are busy with till all waves are done, which we all know is not nearing its end soon as ZATCA mandates compliance for companies by setting waves and compliance deadlines for each announced wave.

It follows that the number of waves will continue to increase until all companies are compliant. However, the weight of this responsibility can get heavy & be overwhelming! Not to mention if the system you’re looking to integrate requires a bit more than just a simple touch, like the Microsoft Dynamics systems.

Microsoft Dynamics integration with ZATCA is a bit sensitive due to the differences each type, application, and edition the Microsoft Dynamics systems carry with them. Such as Microsoft Dynamics CRM, Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics Finance & Operations, and more.

The intricate nature of each system and what follows of the requirements associated with it make it hard for companies to integrate their systems with external ones easily. Nevertheless, E-invoicing in Saudi Arabia remains to be mandatory so there has to be a proper solution to integrate with ZATCA right? Of course, that’s why today we walk you through the process of how we handle Microsoft Dynamics integrations with ZATCA at InvoiceQ.

Let’s Keep You in The Loop About Microsoft Dynamics

Understanding how to integrate your Microsoft Dynamics system starts by realizing the demands your business logic requires, the type of Microsoft Dynamics system implemented, and the optimal data synchronization method to follow. Microsoft Dynamics systems can be either locally hosted (offline version) or logged into as a web service (online version). The key differences lie in how they’re deployed, accessed, and scaled.

Microsoft Dynamics online editions are hosted on the cloud (on Microsoft servers), can be accessed from web browsers as long as you have a stable internet connection, and can be easily scaled to process the number of invoice data your company needs.

On the other hand, Microsoft Dynamics locally hosted editions are deployed on the company’s server or computers, can be accessed offline as long as it’s from the same device it was installed on, and supports more advanced customization options tailored to your business-specific needs. Considering various editions and types exist means variations in the integration options provided for each could be an option we consider to provide the best outcome for our clients.

How Does The Microsoft Dynamics Integration With ZATCA Happen?

Integration with Microsoft Dynamics is typically achieved through API integration (Application Programming Interfaces) to ease the process of fetching, processing, and updating data after ensuring that all invoice data is ZATCA-signed.

In a similar concept to our Database Integration at InvoiceQ, we work out the integration between any Microsoft Dynamics system and ZATCA through our “Smart Delegator”. The Smart Delegator is an adapter that connects the client’s system with InvoiceQ to share data updates in real-time, send it to ZATCA for approval after being processed, and ultimately transmit the updated data to the client’s system.

How is Data Fetched? 

The “Smart Delegator” works as a translator between both sides; hence, it fetches data from the Microsoft Dynamics OData to get the data it needs to process from the client and then processes it. However, the data formats between the two systems are not the same and this is where the “Smart Delegator” steps in to adapt the formats, send the data, get a response, and have it updated in the right format for the client. 

This process happens by relying on the deployed APIs to have the integration ceaselessly done. Furthermore, if the goal is to fetch specific invoice data instead of fetching and processing all invoices, Microsoft Dynamics provides advanced filtration options that enable us to set the date of the invoices for example, then issue a request to fetch it, process it, and update it with a response via the “Smart Delegator”.

As a result, businesses can maintain consistent and up-to-date information in addition to leveraging the advanced capabilities of Microsoft Dynamics and maintaining interoperability between their existing system technology and ZATCA.

Client-Side Integration Notes

Clients have to implement an API on their side called “Update Invoice”, the role of which is to reflect status updates for failed and successful invoices so clients are updated with all changes in real-time.  

What is The Significance of This?

Distinguishing and processing new invoice data effectively relies on the “Update Invoice” API being deployed on the client side. Without this API, updates become difficult to manage. Additionally, the API helps us identify if any invoices are missing ZATCA-mandated data. Thus, ensuring better compliance for our clients with ZATCA for Phase Two. Microsoft Dynamics users receive immediate notifications of any errors during invoice data processing. This allows them to fix the issues before the data is sent to ZATCA for a response, preventing potential delays.

Further Considerations for Microsoft Dynamics Integration With ZATCA

[Variations for Names Used]

A difference between the InvoiceQ modules and Microsoft Dynamics can be spotted. Hence, we overcome this barrier by setting up our dynamic mapping engine to figure out which of their ERP modules is responsible for issuing invoices, for example. As this could happen via one module or various modules in Dynamics, we have to coordinate to set the terms right and thereby the proper actions that align with our Outward module.  The same applies to any other module.

[Data Fetch]

The duration for data fetch is organized via a scheduler with a configurable time set. This ensures data is fetched and updated regularly for the clients. In case no new data is available, no data is fetched for update, and so on. The process of fetching, processing, and updating with ZATCA happens in seconds so it’s really fast. 

[Set-up Time]

The set-up time we take to have everything smooth and running may vary from one client to another based on their business capabilities, technical limitations, IT support they have, and more.

[Integration Type]

For older versions of Microsoft Dynamics Products that lack API support, we offer alternative integration methods like Database integration. This ensures our clients receive the best possible solution, regardless of their system edition.

Wrap Up, 

Integrating your Microsoft Dynamics system with ZATCA for Phase Two can be a complex process indeed. Not to mention that choosing the right integration method on your own can be crucial.  At InvoiceQ, we offer a free consultation to help you determine the best approach for your specific needs.

Our experts will assess your Dynamics setup and discuss various integration options, including API, and Database based on your system requirement to ensure the chosen integration method aligns with your infrastructure and delivers optimal results.

Ready to start your ZATCA compliance journey? Contact us today and have our experts guide you toward smoother integration.

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