SADAD payment system
In one sentenceThe national system in the Kingdom for paying bills and government payments electronically, using the biller number and the bill number, from the bank's app or an ATM.
Simply put
Instead of going to the billing party, you pay the electricity or telecom bill or government fees from the business's account through SADAD, and the payment reaches the party electronically.
In the books, keep the SADAD receipt with the bill, because the bank statement usually shows only the biller number without the bill details.
Worked example
A restaurant pays an electricity bill of 1,150 SAR including VAT through SADAD from its current account.
Dr Electricity expense1,000
Dr Input VAT150
Cr Bank1,150
VAT from the VAT-inclusive amount1,150 × 15 ÷ 115 = 150
Amount deducted from the account1,150 SAR
Don't confuse it with
Bank transferA transfer is sent to the beneficiary's account number, while SADAD is paid using the biller number and the bill number.