Is Odoo Accounting ZATCA Phase 2 compliant?

Yes. Odoo's Saudi localization includes the Phase 2 integration module that generates the signed XML, clears standard B2B invoices and reports simplified B2C invoices through the Fatoora platform. Naqlah onboards each sales journal with the OTP from the portal, tests in simulation mode and activates production once your finance team approves the test invoices.

What happens if ZATCA rejects an invoice?

A rejected invoice is not legally valid and must not be shared with the customer. Odoo flags it with the rejection reason returned by Fatoora, the accountant corrects the data, for example a missing VAT number or an invalid address, and resubmits. Credit and debit notes carry a ZATCA approved reason so corrections to cleared invoices also pass.

Does Odoo produce the Saudi VAT return?

Yes. The tax report is configured for your filing period, monthly if annual taxable supplies exceed SAR 40 million and otherwise quarterly, and shows output and input VAT grouped the way the ZATCA portal asks for them. Finance exports the figures, files before the end of the month following the period and avoids the late filing and late payment penalties.

Can Odoo handle branches under one VAT number?

Yes. Branches share the parent VAT number and each carries its own CRN on invoices, as the ZATCA format requires. In Odoo they are modelled as analytic accounts or as separate companies depending on how you report, so a cafe group can see profit per branch while filing one VAT return for the legal entity.

Does Odoo Community support ZATCA Phase 2?

The official Phase 2 integration module is part of Odoo's localization for the Enterprise edition. Community users rely on third party modules from the app store with varying maintenance. Naqlah recommends the native path for companies receiving a wave notification, since clearance rules change and the official module is updated with them. We review your edition and advise in the first consultation.

Can we migrate from Qoyod, Daftra or SAP Business One?

Yes. Naqlah's migration service extracts the chart of accounts, trial balance, open customer and vendor items and the customer and supplier master data, maps them to the Saudi chart in Odoo and reconciles the opening balances with your auditor's last closed period. Historical cleared invoices stay in the archive to meet the six year retention requirement.

Odoo Accounting in Saudi Arabia

Capabilities

What this module handles

Saudi finance teams are asked to clear every B2B invoice with ZATCA, report B2C sales within a day, file VAT on time and hand the auditor Zakat ready statements, often from spreadsheets and a separate e-invoicing add on. Odoo's native Saudi localization covers the chart of accounts, e-invoicing and tax reports, and Naqlah, as an Odoo partner in Saudi Arabia, onboards your journals, maps your branches and connects your sales channels so the ledger fills itself.

ZATCA Phase 2 clearance for standard B2B invoices and reporting for simplified B2C invoices through Fatoora
VAT return report aligned to your monthly or quarterly filing period, ready for the ZATCA portal
Bank statement import and reconciliation for Saudi bank formats, with payment gateway settlements matched
Multi company and branch level analytic accounting under one VAT number with separate branch CRNs
Zakat base and withholding tax handling for non resident vendors, prepared for your auditor
Multi currency purchasing and sales with SAR as the base currency and automatic exchange differences
Automated customer follow ups, aged receivables and customer statements in Arabic and English
Real time profit and loss, balance sheet and cash flow by company, branch or cost center

Saudi ready

Built for how business runs in Saudi Arabia

Odoo ships the Saudi localization modules for the chart of accounts, Phase 1 QR codes, Phase 2 Fatoora integration, POS reporting and withholding tax, and Naqlah configures them against your actual company data: the full address with district, building number and plot, the VAT number shared across branches, and a CRN per branch. Invoice layouts are Arabic by default with a bilingual option for foreign customers, and reports such as the VAT return and the Zakat schedule follow the periods ZATCA assigns you. Sales from Salla through the Naqlah app, Zid, Foodics and your payment gateways post as journal entries, so the books reflect every channel without re-keying.

Fatoora onboarding per journal
Each sales journal is onboarded with the OTP from the Fatoora portal, tested in simulation mode and then moved to production. Naqlah runs the onboarding with your finance team so the first live invoice clears without surprises.

VAT periods built into the tax report
The VAT return report is set to your monthly or quarterly period and shows output and input tax by box as ZATCA expects. Finance reviews it, exports it and files before the end of the following month.

Arabic and English documents with Hijri dates
Invoices, credit notes and statements print in Arabic with English alongside where your customers need it. Hijri date display can be enabled on the layouts that require it.

How it connects

How does an invoice reach ZATCA from Odoo, and how do Salla, Foodics and bank data land in the same ledger?

1. Invoice confirmed
A sales order, a Salla order synced through the Naqlah app or a POS session closes into an invoice in Odoo with the customer's VAT number and the right 15% tax lines.

2. XML generated and signed
Odoo generates the UBL XML, signs it with the CSID issued to that journal and attaches the QR code required for the Saudi format.

3. Cleared or reported through Fatoora
B2B standard invoices go to the clearance API and return approved or rejected. B2C simplified invoices are reported in batches within the 24 hour window.

4. Delivered and posted
The QR coded PDF/A-3 is emailed to the customer, the receivable posts to the ledger, and PayTabs, Paymob or bank statement lines reconcile against it. See the integrations Naqlah supports.

Implementation

What Naqlah configures in your implementation

Chart of accounts and tax review. Naqlah maps your current accounts to the Saudi chart, sets 15%, zero rated and exempt taxes, and defines fiscal positions for GCC and foreign vendors.
Company and branch identification. Legal name within the 63 character limit, full national address, VAT number and the CRN of every branch are entered and checked before any journal is onboarded.
Journal onboarding on Fatoora. Each sales and POS journal is onboarded in simulation, test invoices are cleared, and production mode is activated once finance signs off, because production cannot be reverted.
Bank and payment gateway connections. Bank statement formats, PayTabs or Paymob settlement reports and Salla or Zid payouts are set up for import and reconciliation rules are defined.
Opening balances and open items migration. Trial balance, open invoices, open bills and customer and vendor ledgers move from Qoyod, Daftra, Wafeq, Zoho Books, SAP B1 or Excel as part of Naqlah's migration service.
Roles, dashboards and handover. Access rights for accountants, branch managers and auditors are set, reporting dashboards are built and the finance team is trained on month end.

Timelines depend on scope, number of journals and the state of the current books, and Naqlah gives you a clear roadmap in the first consultation.

Who it is for

Companies that get the most from this module

eCommerce merchants on Salla or Zid. Thousands of simplified invoices a month are reported automatically and gateway payouts reconcile against bank statements.
Multi branch cafes and restaurants. One VAT number with branch CRNs, Foodics daily sales posted per branch and cost of goods flowing from Inventory.
Distributors with VAT heavy purchasing. Vendor bills, input VAT and withholding on foreign suppliers are captured once and appear in the return.
Services firms billing retainers. Recurring B2B invoices clear through Fatoora and aged receivables drive the follow up schedule.
Groups needing consolidated statements. Several CRs run as companies in one database with consolidated reporting for the board and the auditor.

Before and after

Spreadsheets and add ons vs Odoo Accounting

Area	Before	With Odoo via Naqlah
E-invoicing	Manual portal upload or a third party add on bolted to the books	Native Fatoora clearance and reporting from the invoice itself
VAT return	Built in a spreadsheet from exports each period	Report generated per filing period with box level detail
Bank reconciliation	Manual matching of statements against entries	Statement import with matching rules and gateway settlements
Branches	Separate files or companies per branch	One company, analytic accounts and CRN per branch
Sales channel data	Salla, Zid and Foodics reports re-keyed monthly	Orders and sessions synced as journal entries
Closing	Weeks after month end, statements out of date	Continuous posting with real time statements

FAQ

Module questions, answered

Everything else, we cover in a free 30-minute consultation.

Odoo Accounting

What this module handles

Built for how business runs in Saudi Arabia

How does an invoice reach ZATCA from Odoo, and how do Salla, Foodics and bank data land in the same ledger?

What Naqlah configures in your implementation

Companies that get the most from this module

Spreadsheets and add ons vs Odoo Accounting

Module questions, answered

Modules that work well together

Inventory

Purchase

Point of Sale

Inventory

Purchase

Point of Sale

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