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single euro payment area configuration

Single Euro Payment Area (SEPA)The Single Euro Payments Area (SEPA) is the area where, companies and other economic participants

Can make (SEPA direct credit) and receive (SEPA direct debit) payments in euro, within Europe, whetherbetween or within national boundaries under the same basic conditions, rights and obligations, regardless oftheir location. In February 2012, the European legislator adopted the 'Regulation (EU) No 260/2012 establishing technicaland business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No924/2009' (the SEPA Regulation), which defines 1 February 2014 as the deadline in the euro area forcompliance with the core provisions of this Regulation. In non-euro countries, the deadline will be 31October 2016. Effectively , this means that as of these dates, existing national euro credit transfer anddirect debit schemes will be replaced by SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD) .

The goals The overall goals of SEPA were defined by EU governments in the Lisbon Agenda, which envisagesthe EU internal market as the most competitive knowledge-based economy globally. The integration of europayments markets is a major prerequisite for the realization of this vision. As such, SEPA is considereda necessary step towards strengthening the European economy as a whole. At the same time, SEPA willincrease competition in the payments services sector to the benefit of customers such as consumers,enterprises and public administrationsDirect debit scheme model

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Direct Credit scheme model

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AdvantagesCreditors• Possibility to define the exact date of collection

• Opportunity to optimize cash flow and treasury management

• Simple and cost-efficient way to collect funds

• Ability to automate exception handling such as: returned, rejected, or refunded collections and reversals

• Ability to collect funds from debtors using a single payment instrument across 31 countries

• Reduction of administrative costs and enhancement of security through the use of electronic mandates

Debtors• Possibility to sign either a paper-based or a fully electronic mandate if this latter service is offered by acredit institution• Paying bills throughout SEPA without the risk of late payments and the consequences thereof

• The SEPA Direct Debit is easy to use, because the scheme is accepted as a single, trusted paymentservice by all creditors in SEPA• Straightforward reconciliation of debits on account statements

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• Allows the debtor to do business with a creditor requiring the use of the B2B Scheme for makingpayments in an efficient way• The debtor is easily reachable for SEPA-wide business offerings, because the B2B Scheme is acceptedas a single, trusted payment service by all creditors in SEPA• The debtor has the security of knowing that the debtor bank will verify B2B Scheme

transactions before debiting the debtor’s account

SEPA manda te management has to be activated for the usage with SDD CORE and SDD B2B fr om FI-ARpayment processing. Apart from activating the SEPA Mandate management we need to maintain the SEPAMandate management modifiable fields. Below is the path for activating the SEPA Mandate Management andmaintain the modifiable fields

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Creation of new DMEE Payment Format tree for SEPA credit transfer and SEPA direct debit


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SEPA_CT - pain.001.001.03SEPA_DD - pain.008.001.02 Single Euro payment customization:Configuration steps:• Activation of SEPA Mandate in configuration & SEPA form creation

• Path: SPRO -> Financial Accounting -> Accounts Receivable and Accounts Payable -> IncomingPayments -> Management of SEPA Mandates

• FBZP Customization• Creation of SEPA Mandate id

• Generate IBAN at Customer master and vendor master

• Note to implement for SEPA direct debit pre-notification

• Note to implement for create mass mandate id for customer for T.Code

• Note to implement for calculating the Direct debit lead time in xml file


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FBZP Customization:FBZP Customization:• Update of Creditor Identifier in FBZP “Paying company code segment”• New Payment method needs to be defined with the payment method for “Incomingpayments” and “outgoing payments” in payment method per country

configuration. Ensure to select Swift code and IBAN code as mandatory for incoming payments.• Note to payee at country code level

• Bank determination , Ranking order , bank sub accounts

• Generate IBAN at house bank

Incoming payment

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Creation of SEPA Mandate id:• Create mandate id in T.Code FSEPA_M1 (individual customer)• Mandate id status 1. Active , 2.To be Confirmed 3. Locked and 4.Canceled 5. Obsolete and

6.Completed . Mandate two types 1One –Time Mandate and N Recurring Use Mandate .Noteif un check the B2B , the customer treated as CORE (Pre-requisit to create mandate idIBAN ans SWIFT should exist at master data)

• Create mandate id in T.Code FI_APAR_SEPA_CONV• Create mandate id from customer master data T.Code FD02• Mandate created based on paying company code not on company code

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• Mandate ID can create with External and internal• External number (Max 35 Digits)• Internal number (12 Digits)

Pre-Notification run customers SEPA Core and B2B Customers The changeover of national collection procedures to SEPA Direct Debit requires, along with the use andmanagement of SEPA mandates, that the business partner be notified in advance about the items to becollected and the mandate to be used must be named Features• The SEPA direct debit pre-notification contains the date of collection, the creditor ID of the companycollecting the money, and the mandate reference that is used at collection.• You can create and send the direct debit pre-notification as a separate letter (new correspondence type).As another alternative, you can create this letter in processes that cause invoices to be issued, and print the

letter on the invoice.• At the level of the paying company code, you can specify in which paying company codes direct debitpre-notifications can be created.• You can also specify for each payment method if a direct debit pre-notification is necessary beforecollection can take place.• During posting, you can specify that pre-notification is necessary for certain items. You can also changethis setting when you make manual changes to documents Need to implement some SAP notes to get the pre notification functionality in SAP 1)1679118 2) 1760564 3)1770425 4)1771071 5)1780941 6)17926917)1801504

Once all the relevant OSS Notes are implemented for SEPA Direct debit pre notification, we will get optionof checkbox for Pre-Notification in F110 transaction a nd also pre notification relevant Standard programRFFOAVIS_DD_PRENOTIF and script form (F110_DD_PRENOTIF) Available in the system. Once you selectthe check box, system creates the forms for direct debit pre-notifications based On selection parametersdefined in T.Code:F110 The pre-notification must always reach the payer with a period of 14 calendar days(notification as per client requirement)

Note to implement for create mass mandate id for customer for T.Code FI_APAR_SEPA_CONV

However in the standard selection screens do not contain important selection parameters like signature dateand place, validity period, customer deletion flag etc. SAP provided note 1836215 to adopt above selectionparameters.Through this T.Code mandate id created for all company code which are assigned under paying companycode.Example customer 1234 existed in company codes ABC, DEF , GEH , IJK. Now for this company codes payingcompany code is ABC. System creates 4 mandate id under paying company code ABC.

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Change of Mandate : FSEAP_M2Dispaly of Mandate: FSEPA_M3list of Mandate or Delete first use of mandate : FSEPA_M4

Note to implement for calculating the Direct debit lead time in xml file Lead time for submitting SEAP Direct Debit At Banks• The SEPA Direct Debit (SDD) Core and the SDD Business to Business (SDD B2B) Schemes developedby the European Payments Council (EPC) - like any other direct debit schemes. With SDD Schemes enable consumers to make cross-border direct debitpayments throughout the 32 Single Euro Payments Area (SEPA) countries1. At the same time, the SDD Schemes can be used for paymentsdomestically.• The payer and the biller must each hold an account with a payment service provider (PSP) located within

SEPA. The accounts may be held in either euro or in any other currency. The transfer of funds (money) between the payer's bank and the biller'sbank always takes place in the euro currency SEPA requires meeting modified lead times, examples:• The lead time for submitting a SEPA CORE direct debit at the Bank is 5 days for the first use of amandate and 2 days for the subsequent use.• The lead time for submitting a SEPA B2B direct debit at the Bank is 1 day for the first use of a mandateand 1 day for the subsequent use• SAP has released some standard notes to be implemented for SEPA Direct Debit

• A)1601466 , B) 1605678 , C) 1757993 , D) 1725028, E) 1884024, F) 1628091Once all the relevant OSS Notes are implemented for SEPA Direct debit , we will see in the DME file the SDDtimelines To increase the standard lead time for recurring and first usge of mandate , maintain the Functional moduletable /DCFC/FIAR_SDD Pre-requisites for generating DMEE with lead times• IBAN has to maintained (Customer and House bank)

• SEPA Mandate created for customer

• Bank determination level , bank subaccounts maintained• SEPA Direct debit payment medium workbench variant has to maintain (T.Code OBPM4)

• Auto payment F110 run executed successfullyPre-requisites running for prenotification• IBAN has to maintained

• SEPA Mandate created for customer

• Bank determination level bank subaccounts maintained

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• Invoice due before two weeks of due date.

doc-47472 (2) pmw

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