Line Items

Line items are the individual products or services listed on an invoice. Each line item records what was sold, how much, at what price, and any applicable discounts or taxes.

Adding Products from the Catalog

The fastest way to add a line item is to select a product from your catalog:

1. In the line items section of the invoice form, click Add Item.
2. Start typing the product name, SKU, or barcode in the search field.
3. Select the product from the dropdown.
4. The description, unit price, unit of measure, and tax rate auto-fill from the product record.
5. Enter the quantity.

You can add as many line items as needed. Each product can appear multiple times on the same invoice if needed (for example, with different discount rates).

Manual Line Items

If you need to bill for something that is not in your product catalog, you can create a manual line item:

1. Click Add Item.
2. Leave the product field empty and type a description directly.
3. Enter the unit price, quantity, and select the appropriate tax rate.

Manual line items behave identically to catalog-based items in calculations and on the printed invoice.

tip

If you find yourself adding the same manual line item repeatedly, consider adding it to your product catalog. This saves time and keeps your reporting consistent.

Fields per Line Item

Field	Description
Product	Optional. Select from the catalog or leave blank for a manual entry.
Description	A text description of the item. Auto-filled from the catalog but editable.
Quantity	The number of units sold. Accepts decimals for fractional quantities.
Unit	The unit of measure (piece, hour, kilogram, meter, etc.).
Unit Price	The price per single unit before discounts and tax.
Discount	A percentage or fixed-amount discount applied to this line item.
Tax Rate	The VAT rate applied to this item. Defaults to 15% for standard Saudi VAT.
Total	Calculated automatically: (Quantity x Unit Price) - Discount + Tax.

Discounts

Discounts can be applied at the line item level:

• Percentage discount -- enter a percentage (e.g., 10%) to deduct from the line item subtotal.
• Fixed amount discount -- enter a currency amount (e.g., SAR 50) to deduct directly.

The discount is applied before tax. This means VAT is calculated on the discounted amount, not the original price.

Example:

• Unit price: SAR 1,000
• Quantity: 2
• Discount: 10%
• Subtotal before discount: SAR 2,000
• Discount amount: SAR 200
• Subtotal after discount: SAR 1,800
• VAT (15%): SAR 270
• Line total: SAR 2,070

Tax Calculations

Shaari calculates VAT according to Saudi tax regulations:

• The standard VAT rate is 15%, which is applied by default to all line items.
• Zero-rated items (0% VAT) can be configured for exports or exempt goods.
• Tax-exempt items can also be set to have no VAT applied.

Tax is calculated per line item, and the totals are summed at the invoice level. This per-item approach ensures accuracy and compliance with ZATCA requirements, which mandate tax breakdown at the line item level.

note

For ZATCA Phase 2 compliance, each line item must have an explicit tax category and rate. Shaari handles this automatically, but make sure your product catalog has the correct tax settings.

Subtotal and Total Calculation

The invoice totals are calculated as follows:

Calculation	Formula
Line Item Subtotal	Quantity x Unit Price
Line Item Discount	Subtotal x Discount % (or fixed amount)
Taxable Amount	Line Item Subtotal - Line Item Discount
Line Item Tax	Taxable Amount x Tax Rate
Line Item Total	Taxable Amount + Line Item Tax
Invoice Subtotal	Sum of all Line Item Subtotals - Sum of all Discounts
Invoice Tax	Sum of all Line Item Taxes
Invoice Total	Invoice Subtotal + Invoice Tax

All calculations use the SAR (Saudi Riyal) currency with two decimal places. Rounding follows standard commercial rounding rules.

caution

Removing a line item from a submitted or approved invoice is not possible. If you need to correct items after approval, issue a credit note against the original invoice and create a new invoice with the correct line items.