SAP Innovation Awards 2024 - 4324 - Saudi Electricity Company
The successful implementation of the SAP eDocument framework seamlessly generates and integrates electronic invoices for a diverse portfolio of business transactions with ZATCA. Download the DocumentPUBLIC
Entry Pitch Deck
Saudi Electricity Company - SEC
Utility
Transforming the Business Portfolio with a
Streamlined and Scalable E-Invoicing Framework
Integrated with the Saudi Arabia Tax Authority
Entry Pitch Deck
Saudi Electricity Company - SEC
Utility
Transforming the Business Portfolio with a
Streamlined and Scalable E-Invoicing Framework
Integrated with the Saudi Arabia Tax Authority
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Saudi Electricity Company - SEC
Riyadh. Kingdom of Saudi Arabia
Utility
https://www.se.com.sa/en
+34K
Saudi Electricity Company plays a vital role by supplying the Kingdom
with energy according to the highest reliability standards. The company is
considered the primary source of electricity in the Kingdom by producing,
transmitting, and distributing electricity through an extensive network
covering all parts of the country. The company also provides services to
all consumer segments, whether individuals, enterprises, or government
sectors, contributing to Saudi Arabia's development and renaissance.
Saudi Electricity Company Business provides:
• Electric power generation
• Electricity transmission
• Distribution and customers services
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 2
Saudi Electricity Company - SEC
Riyadh. Kingdom of Saudi Arabia
Utility
https://www.se.com.sa/en
+34K
Saudi Electricity Company plays a vital role by supplying the Kingdom
with energy according to the highest reliability standards. The company is
considered the primary source of electricity in the Kingdom by producing,
transmitting, and distributing electricity through an extensive network
covering all parts of the country. The company also provides services to
all consumer segments, whether individuals, enterprises, or government
sectors, contributing to Saudi Arabia's development and renaissance.
Saudi Electricity Company Business provides:
• Electric power generation
• Electricity transmission
• Distribution and customers services
CHALLENGE: SOLUTION: OUTCOME:
EXECUTIVE SUMMARY
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
B2B, B2C & B2G customer
invoices per year
B2C, B2B & B2G,
customers
Invoices per day
+126M
Saudi Electricity Company - SEC
+10.1M +600K
• Failure to comply with the regulation can result
in huge penalties and prevent issuing millions of
invoices to be collected.
• An immense volume of 126+ millions of
commercial and taxable transactions is processed
each year.
• Various billing systems in the company are
using SAP and non-SAP systems.
• Over 250 business scenarios are taken into
account, including intricate SEC business and
legal taxable scenarios.
One Framework to generate and integrate the e-
invoices for a portfolio of businesses with the Saudi
Arabia General Authority for Zakat, Tax, and
Customs Authority (ZATCA)
The successful implementation of the SAP
eDocument framework seamlessly generates and
integrates electronic invoices for a diverse portfolio of
business transactions with ZATCA.
The framework provides a streamlined and efficient
mechanism for electronic invoicing while ensuring
compliance, reliability, security, and transparency.
Overall, the unified e-invoicing framework goes a long
way in enhancing the efficiency and effectiveness of
the invoicing process while also promoting greater
compliance and transparency.
EXECUTIVE SUMMARY
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 3
B2B, B2C & B2G customer
invoices per year
B2C, B2B & B2G,
customers
Invoices per day
+126M
Saudi Electricity Company - SEC
+10.1M +600K
• Failure to comply with the regulation can result
in huge penalties and prevent issuing millions of
invoices to be collected.
• An immense volume of 126+ millions of
commercial and taxable transactions is processed
each year.
• Various billing systems in the company are
using SAP and non-SAP systems.
• Over 250 business scenarios are taken into
account, including intricate SEC business and
legal taxable scenarios.
One Framework to generate and integrate the e-
invoices for a portfolio of businesses with the Saudi
Arabia General Authority for Zakat, Tax, and
Customs Authority (ZATCA)
The successful implementation of the SAP
eDocument framework seamlessly generates and
integrates electronic invoices for a diverse portfolio of
business transactions with ZATCA.
The framework provides a streamlined and efficient
mechanism for electronic invoicing while ensuring
compliance, reliability, security, and transparency.
Overall, the unified e-invoicing framework goes a long
way in enhancing the efficiency and effectiveness of
the invoicing process while also promoting greater
compliance and transparency.
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 4
The vision of the Saudi Electricity Company is to emerge as
one of the leading Utilities Companies by prioritizing and
accelerating the digital way of working, transformations,
innovation, and modernization of IT. “SEC” is one of major
leaders in the kingdom that adapted country-specific
requirements for taxable invoices in its early stages, taking
into consideration the challenges of managing and syncing
huge amount of invoices that get generated through multiple
platforms.
Zaid A. Al-Jendel,
Executive Director, Technology Infrastructure, Saudi Electricity Company - SEC
The vision of the Saudi Electricity Company is to emerge as
one of the leading Utilities Companies by prioritizing and
accelerating the digital way of working, transformations,
innovation, and modernization of IT. “SEC” is one of major
leaders in the kingdom that adapted country-specific
requirements for taxable invoices in its early stages, taking
into consideration the challenges of managing and syncing
huge amount of invoices that get generated through multiple
platforms.
Zaid A. Al-Jendel,
Executive Director, Technology Infrastructure, Saudi Electricity Company - SEC
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Regulatory Compliance: Ensuring strict compliance with Saudi Arabia's legal
requirements for electronic invoicing can be a daunting task. It requires
maintaining accuracy and completing hundreds, if not thousands, of
documents daily.
Data Security: With an increase in digital data, managing the security of
sensitive information from cyber threats is a significant challenge. This is a
universal issue that many organizations face in this era of digital
transformation.
Keeping Up with Updates: As regulatory compliance laws are prone to
changes and updates, it's a global challenge for organizations to quickly adapt
to these modifications.
Implementation Complexities: Setting up and harmonizing the SAP
Document and Reporting Compliance solution across existing (SAP & non-
SAP) billing systems can be a complex task. It requires coordinating different
teams to ensure seamless integration and functioning of the system.
Training & User Adaptability: Training for the new solution adaptation is a
significant challenge to ensure a smooth transition.
Performance Measurement: Measuring the efficiency and effectiveness of
the SAP solution in real-time is a challenge, which needs a systematic
approach to continuously refine the system.
Costing: The implementation, training, and maintenance could entail
substantial costs. Ensuring that all these fit within the budget and provide
adequate return on investment is a significant challenge.
Challenges and Objectives 1 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 5
Regulatory Compliance: Ensuring strict compliance with Saudi Arabia's legal
requirements for electronic invoicing can be a daunting task. It requires
maintaining accuracy and completing hundreds, if not thousands, of
documents daily.
Data Security: With an increase in digital data, managing the security of
sensitive information from cyber threats is a significant challenge. This is a
universal issue that many organizations face in this era of digital
transformation.
Keeping Up with Updates: As regulatory compliance laws are prone to
changes and updates, it's a global challenge for organizations to quickly adapt
to these modifications.
Implementation Complexities: Setting up and harmonizing the SAP
Document and Reporting Compliance solution across existing (SAP & non-
SAP) billing systems can be a complex task. It requires coordinating different
teams to ensure seamless integration and functioning of the system.
Training & User Adaptability: Training for the new solution adaptation is a
significant challenge to ensure a smooth transition.
Performance Measurement: Measuring the efficiency and effectiveness of
the SAP solution in real-time is a challenge, which needs a systematic
approach to continuously refine the system.
Costing: The implementation, training, and maintenance could entail
substantial costs. Ensuring that all these fit within the budget and provide
adequate return on investment is a significant challenge.
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• By July 1st, 2023, SEC wanted to ensure that the billing systems comply
with Saudi Arabia's Electronic Invoice Regulation and were fully
integrated with the ZATCA* system.
• To achieve this, we aimed to successfully implement SAP’s solution,
including the local version of SAP Document and Reporting
Compliance, and SAP Integration Suite.
• Secure and accurate generation of electronic invoices from integrated
multiple billing systems, including SAP ECC, SAP ISU, and non-SAP
Billing systems.
• Improve data accuracy, transparency, and availability through real-time
electronic invoicing and reporting capabilities.
• Comply all SEC specific business scenarios and all type SEC customers
B2B, B2C & B2G.
• Reduce risk and increase efficiency by transforming the manual, error-
prone invoice management system to an automated, streamlined process.
• Enable SEC to easily adapt to future regulatory changes and
requirements in the local market by leveraging SAP’s scalable solution.
• SAP Solution is one of leaders for this solution in that market
• One of the top reasons is the strong collaboration of the SAP
Localization team in the MENA region with the General Authority for
Zakat, Tax, and Customs Authority (ZATCA) to manage the latest legal
requirements and ensure timely solution updates.
• Built-in integration with SAP backend systems enables automation and
real-time e-invoicing.
• Additionally, SAP offers product extensibility that allows us to integrate
with third-party sales platforms to onboard new lines of business
quickly while ensuring compliance with regulations and transform
electronic Invoices created by SEC’s backend systems.
• We can rely on the expertise of highly cooperative professionals from the
SAP Localization and Service teams who have years of experience in
the field.
• Finally, The transparency of SAP's product roadmap keeps us
informed of upcoming legal requirements..
* ZATCA General Authority for Zakat, Tax, and Customs Authority
Challenges and Objectives 2 of 2
© 2023 SAP SE or an SAP affiliate company. All rights reserved | PUBLIC 6
• By July 1st, 2023, SEC wanted to ensure that the billing systems comply
with Saudi Arabia's Electronic Invoice Regulation and were fully
integrated with the ZATCA* system.
• To achieve this, we aimed to successfully implement SAP’s solution,
including the local version of SAP Document and Reporting
Compliance, and SAP Integration Suite.
• Secure and accurate generation of electronic invoices from integrated
multiple billing systems, including SAP ECC, SAP ISU, and non-SAP
Billing systems.
• Improve data accuracy, transparency, and availability through real-time
electronic invoicing and reporting capabilities.
• Comply all SEC specific business scenarios and all type SEC customers
B2B, B2C & B2G.
• Reduce risk and increase efficiency by transforming the manual, error-
prone invoice management system to an automated, streamlined process.
• Enable SEC to easily adapt to future regulatory changes and
requirements in the local market by leveraging SAP’s scalable solution.
• SAP Solution is one of leaders for this solution in that market
• One of the top reasons is the strong collaboration of the SAP
Localization team in the MENA region with the General Authority for
Zakat, Tax, and Customs Authority (ZATCA) to manage the latest legal
requirements and ensure timely solution updates.
• Built-in integration with SAP backend systems enables automation and
real-time e-invoicing.
• Additionally, SAP offers product extensibility that allows us to integrate
with third-party sales platforms to onboard new lines of business
quickly while ensuring compliance with regulations and transform
electronic Invoices created by SEC’s backend systems.
• We can rely on the expertise of highly cooperative professionals from the
SAP Localization and Service teams who have years of experience in
the field.
• Finally, The transparency of SAP's product roadmap keeps us
informed of upcoming legal requirements..
* ZATCA General Authority for Zakat, Tax, and Customs Authority