SEPA COnfiguration guide

7/24/2019 SEPA COnfiguration guide

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SEPA event 11 December 2012 2

SEPA Direct Debit In SAP012


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Sheet 2

Qrcus BV 2012 SEPA Seminar December 2012 Sheet 2

SEPA Direct Debit in SAP

Agenda

Introduction

SEPA: European direct debit

SAP SEPA DD features

Take aways


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Sheet 3

Qrcus BV 2012 SEPA Seminar December 2012 Sheet 3

SEPA: European direct debit

SEPA Core Direct Debit Scheme (SDD Core)and the SEPA Business to Business DirectDebit Scheme (SDD B2B) create for the firsttime a payment instrument that can be usedfor both domestic and cross-border collectionsthroughout the 32 SEPA countries

The SEPA Schemes define sets of rules andstandards for the execution of SEPA paymenttransactions that have to be observed bypayment service providers (PSPs).

Are we ready in time?

3


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Sheet 4 Qrcus BV 2012 SEPA Seminar December 2012 Sheet 4

4

SEPA Direct Debit: CORE and B2B

SEPA Core Direct Debi t Scheme (SDD)

The payer and the biller must each hold an account with a

payment service provider (PSP) located in SEPA country .

The SDD Core Scheme allows a biller to collect funds from a

payers account provided that a signed m andate has been

granted by the payer to the biller

The SDD Scheme may be used for single (one-off) or recurrent

direct debit collections , the amounts are not limit ed .

Even exceeding the requirements of the Payment Services

Directive (PSD), the SDD Core Scheme grants payers a no-

questions-asked refund right durin g the eight weeks

following the debiting of a payers account

The payers bank must receive the request for direct debit

collection latest five business days pri or to t he due date .

SEPA Business to Business

The SDD B2B Scheme enables business customers in the role

of payers to make payments by direct debit .

Services and products based on the SDD B2B Scheme are only

available to businesses

In the SDD B2B Scheme the payer (a business) is not entitled

to obtain a refund of an authorized transaction.

The SDD B2B Scheme requires the payers bank to ensure that

the collection is authorized by checking the collection against

mandate inf ormation ; the payers bank and the payer are

required to agree on the verification to be performed for each

SEPA B2B direct debit.Responding to the specific needs of the business community the

B2B Scheme offers a significantly shorter timeline for

presenting direct debits


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SEPA Direct Debit: jargon/aspects

IBAN and BICOnly permissible account and bank identifiers for SEPA transactions

MandatesSigned by the payer to authorize the on the first day of each month biller to collect a payment andto instruct the payers bank to pay those collections.

E-MandateSDD Schemes: possibility to create mandates through the use of electronic channels

Due DateThe SDD Schemes allow payers and billers to anticipate the precise (due) date

Pre-notificationBiller -> Payer, 14 days before collection is standard.Pre-notification includes the due date and the amount of the collection

Creditor Identifier Each biller in SEPA will be identified with a creditor identifier

SEPA data formatThe ISO 20022 message standards


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SEPA Direct Debit : SAP supports the Business

Mandate Management Process in SAPDesign , Implementation and use of the Company mandate formsRecord the data from the mandates in SAP system

Approval process for Mandate managementMaster data allocation to mandate for SEPA DD

Information via invoicing and pre-notification to Customer

BCM SWIFT Connection for a European DD contract with Core Bank

Payment process and submitting European direct debit batchesXML enablement of the new standard European SEPA payment formatsSEPA Direct Debit based on EPC Rulebook V.3.3 (Core) and V.1.2 (B2B)AutomaticProcessing of Payment order Significant approval of the Collection order Straightforward reconciliation of payments received

Ability to automate exception handling (refunds, returns, rejects)


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SEPA Direct Debit : the full process in SAP


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Management of SEPA Direct Debit Mandates in SAP

Features

Administ ration:Mandate administration including creation, change,

status tracking, and deletion of mandatesSEPA_MANDATE for PDF and SEPA_MANDATEfor SmartForms

Payment processing

Integrate the mandates and operational processes,such as periodic payment runs For example, eachpayment run will ensure that SEPA Direct Debitsare processed only when a valid mandate existsThe payment program checks the existence and

validity of the SEPA mandateThe system stores the ID of the SEPA mandate inthe payment data and generates a SEPA-specificpayment medium as a result


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Management of SEPA Direct Debit Mandates in SAP

Features

Administ ration:Mandate administration including creation, change,

status tracking, and deletion of mandatesSEPA_MANDATE for PDF and SEPA_MANDATEfor SmartForms

Payment processing

Integrate the mandates and operational processes,such as periodic payment runs For example, eachpayment run will ensure that SEPA Direct Debitsare processed only when a valid mandate existsThe payment program checks the existence and

validity of the SEPA mandateThe system stores the ID of the SEPA mandate inthe payment data and generates a SEPA-specificpayment medium as a result


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SAP ISO 20022 CGI Mapping Group

Purpose

Develop mappings of CGI guidelines to SAP

internal Data Fields

Deliverables

Individual maps DMEE/PMW XML Format, PI

XML Schema, Supporting user documentation

with explanations, amplifications, and guidance

Benefits

Harmonisation allows a messaging template to

be established.

Enables and reduce the future costs associated

with banking integration.

Improves the overall visibility, monitoring and

control through simplification through

standardisation.


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SAP optimized Bank Connectivity

SAPIntegration Package

for SWIFT

SAP ERP

SAP

SAP NetWeaverProcess

Integration

SWIFTNet

AccountsReceivable

Treasury

Other

AccountsPayables

SWIFTNetInterface

Banks

S A

P B a n

k C o m m u n

i c a

t i o n

M a n a g e m e n

t

Service Provider

AccountsReceivables


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ExecutePayment

Program

SEPA DDPayment

Order

ImportBank

Statement

Post/Processingand

Clearing

SAP IntegrationPackage for

SWIFTSWIFT

Alliance Access /Gateway

SAP NetWeaverProcess Integration

SAP BankCommunicationManagement

SAP ERP

Create Batch

Payment ApprovalWork List

Security- Approvalworkflow

- Authorization- Digital signature

Receive StatusMessages

Bank Statement

Routing

Mapping

SecurityEncryption

Digital Signature

Resource Adapter

SWIFTNet

Bank Communication Process Flow


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Payment run

SEPA DDDemo

Mandate Management

Processing

Payment CollectionProcessing

Bank CommunicationManagement ->Approve Payments

Second ApprovalProcessing -> ApprovePayments

Status Management ->Batch and PaymentMonitor

Audit Trail

ARTeam


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Payment run

SEPA DDDemo

Mandate Management

Processing





Audit Trail

ARTeam


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First Approve Payments

SEPA DDDemo

Mandate Management

Processing





Audit Trail

First Appr over


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Second Approve Payments

SEPA DDDemo

Mandate Management

Processing





Audit Trail

Second Appr over


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Batch and Payment Monitor

SEPA DDDemo

Mandate Management

Processing





Audit Trail

CashManager

Second Appr over

First Approv er

Batchcreator


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Audit Trail

ISO XML file

SEPA DDDemo

Mandate Management

Processing





Audit Trail

Second Approv er

First Appr over

CashManager


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Take aways

Approach SEPA (Payments as well as Direct Debi ts) as a processimprovements rather than as a mandatory sys tem-fix;

Focus on adding value to your Business: opt imization and de-complexing

Advices (not l imi tative)

Appoint a dedicated team (business and IT) and adopt a plan of approach

Consider to use Best practice of SAP : SEPA and BCM

Arrange Participation of your Bank in your projectContact and communicate with your Customers in time

Arrange Guidelines/regulations: Mandate Management, Invoicing, pre-notification, refund

periods, block procedures,

Phase-out local Direct Debits

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SEPA COnfiguration guide

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