8 Working with SEPA Payments and Credits

This chapter contains the following topics:

8.1 Understanding SEPA Payments

The EPC (European Payments Council) is the governing body and coordination body of the European banking industry in relation to payments. The purpose of the EPC is to support and promote the creation of a Single European Payments Area (SEPA). The SEPA (Singe Euro Payments Area) Credit Transfer version 7.0 (V7.0) updates are based on SEPA rule book and SEPA implementation guidelines V7.0, which are published by the EPC.

The SEPA initiative for European financial infrastructure involves creation of a zone in which all payments in euros are considered domestic. No distinction will exist between the national and international payments. SEPA strives to improve the efficiency of international payments and developing common standards, procedures, and infrastructure to improve the economies of scale. The introduction of SEPA will increase the intensity of competition amongst banks and corporations for customers across borders within Europe. For customers, SEPA will bring cheaper, efficient, and faster payments within the SEPA zone.

SEPA will introduce a new pan-European payment scheme for payments, both credit transfers and direct debits. As such, it will have an impact on millions of consumers and organizations across the region.

To create the SEPA payment XML file in the JD Edwards EnterpriseOne system, you set up your company and supplier bank accounts with the BIC number and IBAN and specify that the account is for use for SEPA payments. When you use the Write process in the automatic payment process, the system writes records to an XML file for accounts that are set up as SEPA accounts. You then send the XML file to the bank.

The JD Edwards EnterpriseOne system supports the creation of the credit transfer XML payment format. You can create the XML file for SEPA credit transfer payments when you run the automatic payment process. However, the JD Edwards EnterpriseOne system does not support the transmission of the XML file.

Note:

(Release 9.1 Update) Updates now enable you to use the SEPA Credit Transfer functionality V7.0 with the Business Intelligence Publisher (BIP) tool. The BIP tool replaces the use of the SEPA XML Credit Transfer - COMM - 04 report (R744002) for SEPA credit transfers.

See "Working with BI Publisher Payment Formats in European Countries" in the JD Edwards EnterpriseOne Applications BIP Payment Formats for Localizations Implementation Guide.

Note:

(Release 9.1 Update) To specify default processing for SEPA payments, you set processing options for version ZJDE0002 of the Payment Information Extractor Report (R704001), and the SEPA Credit Transfer POs - COMM -04 program (P744001). The only function of the P744001 program is to provide additional processing options for SEPA to complement the general processing options available in the R704001 program.

To access the processing options for P744001, select the SEPA Credit Transfer Processing Options (P744001) from the General SEPA XML menu (G74SEPA). You can also access the processing options through Interactive Versions program.

To access the processing options for R704001, select the SEPA XML Credit Transfer (R704001) from the General SEPA XML menu (G74SEPA). You can also access the processing options through Batch Versions program.

Note:

(Release 9.1 Update) The system validates all the information required to process the SEPA payments during the payment group creation process. The validations are performed only for SEPA-related transactions and are based on the value of the Payment Print Program for the payment instrument type of the payment group. For SEPA validations, the Payment Print Program value must be P704001.

The validations are the same as the validations that are performed during the write payment process. If there is an error during the validation process, the system excludes the vouchers that fail the validation and creates payment groups for only the valid vouchers.

8.2 Generating the XML File for SEPA Payments (Release 9.1 Update)

This section provides overviews of XML file for SEPA payments, error messages in the Payment Information Extractor Report (R704001) for SEPA, and unacceptable characters in the output file; and discusses how to set processing options for SEPA Credit Transfer POs - COMM -04 (P744001).

8.2.1 Understanding the XML File for SEPA Payments

When you use the automatic payment process in the JD Edwards EnterpriseOne software, you specify the payment print program to use. The payment print program controls how the system writes records to the database tables.

For SEPA payments, you set the payment print program to P704001, version ZJDE0002 and run the Write process of the automatic payment process to create the XML file.

Note:

JD Edwards EnterpriseOne software does not support the transmission of the XML file to the bank. The software includes only the functionality to generate the XML file.

When you run the automatic payment process that is set to use the R704001 program for SEPA payments, the system:

  • Generates a PDF file that shows if the process completed successfully or with errors.

  • Generates the XML file.

  • Changes the payment status of the group from WRT (write) to UPD (update) if the process completed successfully.

You can also write single payments of a group by using the Work With Payment Group - Write Status program (P04572W). The system generates the SEPA Credit Transfer XML only for the payments written in the Work With Payment Group - Write Status form.

To write single payments:

  • Launch the Work With Payment Groups program (P04571).

  • Select the payment control group.

  • Access Payments from the Row menu.

  • In the Work With Payment Group - Write Status form, select one or multiple payments of the group, and select Write from the Row menu.

8.2.1.1 XML File

The XML includes three blocks of records. Block A is the message root. Block B is the Group Header block, which includes description of the XML file and the initiating party. Block C is the Payment Information block and includes a set of parameters, which apply to the debit side of the credit transfer transaction. Block C also includes the Credit Transfer Information elements, which can have one or multiple transaction records.

See "Fields in the SEPA Payments XML File (Release 9.1 Update)"

8.2.2 Understanding Error Messages in the Payment Information Extractor Report for SEPA (R704001)

The system displays an error in the following circumstances:

  • The Instruction Priority processing option is blank.

  • The Category Purpose processing option is blank.

  • The Payment Purpose processing option is blank.

  • The Initiating Party element is blank.

  • The Initiating Party ID element is blank.

  • The Debtor element is blank.

  • The Debtor ID element is blank.

  • The Ultimate Debtor element is blank.

    Note:

    If the Ultimate Debtor address book number is equal to Debtor address book number, the system does not print this tag or display an error.
  • The Ultimate Debtor ID element is blank.

  • The Creditor element is blank.

  • The Creditor ID element is blank.

  • The Ultimate Creditor element is blank.

    Note:

    If the Ultimate Creditor address book number is equal to Creditor address book number, the system does not print this tag or display an error.
  • The Ultimate Creditor ID element is blank.

  • The Address Line element is blank.

  • Either or both the bank account of the company and supplier are not set up as SEPA accounts.

  • The payment currency specified in the Currency Code processing option for R704001, ZJDE0002 version is different from the currency of the payment group.

  • The IBAN and BIC (SWIFT Code) elements of the debtor and creditor are blank. This error message displays only if you set the processing options to validate the IBAN and the BIC for the debtor and the creditor bank accounts.

If there are errors, the system does not advance the payment group next status to UPD (update). The system generates a PDF report stating that the process has finished with errors and the error messages are written in the Work Center.

The system includes the Payment Group Control Number in error messages written to the Work Center. This number helps you identify payments that have errors.

If the system determines that the country of the company or supplier is blank, the system writes a warning message to the Work Center, and changes the status of the payments from Write to Update. The PDF report includes a statement that there was a warning message sent to the Work Center.

If a payment control group has two or more payments and some of them have errors, the system advances the payments without errors to the update status, but does not advance the payments with errors to the update status. In this case, the system generates the XML only for those payments that are written (the ones without errors).

8.2.3 Understanding Unacceptable Characters in the Output File

The Payment Information Extractor program (R704001) for SEPA generates an XML file that you submit to the banking system. The program generates some information, such as addresses, using the language that is set up in your system. The banking system cannot process all of the special characters that exist in all languages. If your JD Edwards EnterpriseOne system generates the XML file with unacceptable characters, you can set up your system to substitute acceptable, alternative characters for the unacceptable characters.

You set up the Replace Character In String (70/RS) UDC table with the acceptable characters to use in place of the unacceptable characters. You then specify in a processing option in the ZJDE0002 version of the Payment Information Extractor program (R704001) that you want to use the 70/RS UDC table to substitute characters in the XML output file.

When you set up the 70/RS UDC table, you can specify one or more alternative characters. When you specify multiple alternative characters, the length of the string that is altered does not change; if the original string is three characters, the modified string is three characters. The system drops certain characters from the string if inserting all of the alternate characters will result in the modified string exceeding the allowed length of the string.

These examples illustrate how the system replaces a single character with multiple characters:

8.2.3.1 Example 1: Replacing A with FG

Original string is ABC.

Modified string is FGB.

To retain field length of three, the system drops the C from the string.

8.2.3.2 Example 2: Replacing A with FG

Original string is ABC_ _ _ (where _ is blank).

Modified string is FGBC_ _.

To retain the field length of six, the system drops the last blank from the string.

8.2.3.3 Example 3: Replacing B with FGHI

String is ABC.

Result is AFG.

To retain the field length of three, the system replaces only the first two letters.

8.2.4 Setting Processing Options for the SEPA Credit Transfer POs - COMM - 04 (P744001)

Processing options enable you to set default processing values for programs and reports.

Note:

You can access the processing options by selecting SEPA Credit Transfer Processing Options (P744001) from the General SEPA XML menu (G74SEPA).

8.2.4.1 General

1. Payment Purpose

Specify a ISO standard code from UDC table (74/PC) that identifies the purpose of the collection.

If you leave this processing option blank, the system displays an error on the report and does not advance the payment to the update status.

2. Category Purpose

Specify an ISO standard code from UDC table (74/CP) that identifies the category purpose of the collection. For example: salary payment, supplier payment, tax payment.

If you leave this processing option blank, the system displays an error on the report and does not advance the payment to the update status.

3. Instruction Priority

Specify a value from UDC table (74/IP) that indicates the urgency that the instructing party applied to the processing of the instruction. Values are:

HIGH: Priority level is high.

NORM: Priority level is normal.

If you leave this processing option blank, the system displays an error on the report and does not advance the payment to the update status.

4. Initiating Party Identification Issuer

Specify a value that identifies the initiating party issuer. The Issuer is informed for "Initiation Party" field only.

If you leave this processing option blank, the system does not display this tag on the report.

5. Financial Institution Identification of Debtor Agent

Specify whether to include the BIC of the debtor's bank account or to include a tag with the value of Not Provided in the output XML file. Values are:

Blank: BIC of the debtor bank.

1: Not Provided

If you set this processing option to 1, you must set the validation for the company's bank account BIC with a blank value.

6. Local Instrument

Specify a value that identifies the local instrument code.

If you leave this processing option blank, the system does not display this tag on the report.

7. Batch Booking Upper/Lower Case Flag

Specify whether the output XML file should display the Batch Booking Flag value in uppercase or lowercase. Values are:

Blank: Lowercase

1: Uppercase

8.2.4.2 Remittance Information

1. Remittance Information Mode

Specify the mode that the system uses to inform the remittance information. Values are:

Blank: Structured

1: Non-structured

2. Remittance Identification Issuer

Specify the field that the system uses to retrieve the remittance identification issuer when the remittance information mode is structured. Values are:

Blank: Mailing name of the supplier

1: Country of the supplier. The system retrieves the value from UDC 74/IC based on the supplier' s country.

2: User-defined value. If you specify this value for this processing option, you must set the Remittance Identification Issuer value processing option.

When the remittance information mode is unstructured, you do not need to specify this processing option.

3. Remittance Identification Issuer Value

When the remittance information mode is structured and the Remittance Identification Issuer processing option is set to a user-defined value, you must specify a value in this processing option to populate the <Issr> tag in the XML file. If you leave this processing option blank, the system does not populate the <Issr> tag.

8.2.4.2.1 Example of Remittance Information XML

The system generates different XML codes, depending on the values of the processing options on the Remittance Information tab of the SEPA Credit Transfer POs - COMM - 04 program (P744001). Review the examples for a payment that has two suppliers (supplier A with 2 vouchers (INV DISC. 1 and INV DISC. 4) and supplier B with 2 vouchers (INV DISC. 2 and INV DISC 3):

  • If the Remittance Information Mode processing option is set to non-structured, the Inform multiple invoices (Y/N) processing option is set to multiple occurrences, the system generates the following XML code:

    <CdtTrfTxInf>
     <RmtInf> 
     <Ustrd>INV DISC. 1/2013-01-10/20000.00/14000.00/6000.00 INV DISC. 2/2013-01-15/10000.00/10000.00/.00</Ustrd>
     </RmtInf>
    </CdtTrfTxInf> 
    <CdtTrfTxInf>
     <RmtInf> 
      <Ustrd>INV DISC.3/2013-01-10/20000.00/14000.00/6000.00 INV DISC. 4/2013-01-15/10000.00/10000.00/.00</Ustrd>
      </RmtInf>
    </CdtTrfTxInf> 
    
  • If the Remittance Information Mode processing option is set to non-structured, the Inform multiple invoices (Y/N) processing option is set to a single occurrence, the system generates the following XML code:

    <CdtTrfTxInf> 
      <RmtInf> 
       <Ustrd>INV DISC. 1/2013-01-10/20000.00/14000.00/6000.00 </Ustrd>
      </RmtInf>
    </CdtTrfTxInf>
    <CdtTrfTxInf>
      <RmtInf>
       <Ustrd>INV DISC. 3/2013-01-10/20000.00/14000.00/6000.00 </Ustrd>
      </RmtInf>
    </CdtTrfTxInf> 
    
  • If the Remittance Information Mode processing option is set to structured, the Inform multiple invoices (Y/N) processing option is set to multiple occurrences, the system generates the following XML code:

    <RmtInf>
     <Strd>
    <RmtInf>
     <Strd>
       <Tp>
         <CdOrPrtry>
           <Cd>SCOR</Cd>
         </CdOrPrtry>
         <Issr> Vision Operations</Issr>
       </Tp>
       <Ref>INV DISC. 1</Ref>
      </CdtrRefInf>
     </Strd>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> Vision Operations</Issr>
       </Tp>
    <RmtInf>
     <Strd>
    <RmtInf>
     <Strd>
       <Tp>
         <CdOrPrtry>
           <Cd>SCOR</Cd>
         </CdOrPrtry>
         <Issr> Vision Operations</Issr>
       </Tp>
       <Ref>INV DISC. 1</Ref>
      </CdtrRefInf>
     </Strd>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> Vision Operations</Issr>
       </Tp>
      </CdtrRefInf>
     </Strd>
    </RmtInf>
    <RmtInf>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
       <Issr> General Ops</Issr>
       </Tp>
       <Ref>INV DISC. 3</Ref>
    </CdtrRefInf>
     </Strd>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr>General Ops</Issr>
       </Tp>
       <Ref>INV DISC. 4</Ref>
      </CdtrRefInf>
     </Strd>
    </RmtInf>
    
  • If the Remittance Information Mode processing option is set to structured, the Inform multiple invoices (Y/N) processing option is set to a single occurrence, the system generates the following XML code:

    <RmtInf>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> Vision Operations</Issr>
       </Tp>
       <Ref>INV DISC.1</Ref>
      </CdtrRefInf>
     </Strd>
    </RmtInf>
    <RmtInf>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> General Ops</Issr>
       </Tp>
       <Ref>INV DISC.3</Ref>
      </CdtrRefInf>
    <RmtInf>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> Vision Operations</Issr>
       </Tp>
       <Ref>INV DISC.1</Ref>
      </CdtrRefInf>
     </Strd>
    </RmtInf>
    <RmtInf>
     <Strd>
      <CdtrRefinf>
       <Tp>
        <CdOrPrtry>
         <Cd>SCOR</Cd>
        </CdOrPrtry>
        <Issr> General Ops</Issr>
       </Tp>
       <Ref>INV DISC.3</Ref>
      </CdtrRefInf>
    </RmtInf>
    

8.2.4.3 XML File

1. Debtor Town Name

Specify whether to include the XML element tag Town Name <TwnNm> for the Debtor in the output XML file. Values are:

Blank: Include it (default). You must have a value set up in the Address Book.

1: Do not include.

2. Debtor Postal Code

Specify whether to include the XML element tag Postal Code <PstCd> for the Debtor in the output XML file. Values are:

Blank: Include it (default). You must have a value set up in the Address Book.

1: Do not include.

3. Creditor Town Name

Specify whether to include the XML element tag Town Name <TwnNm> for the Creditor in the output XML file. Values are:

Blank: Include it (default). You must have a value set up in the Address Book.

1: Do not include.

4. Creditor Postal Code

Specify whether to include the XML element tag Postal Code <PstCd> for the Creditor in the output XML file. Values are:

Blank: Include it (default). You must have a value set up in the Address Book.

1: Do not include.

8.2.4.4 Validations

1. R704001 Version

Specify the version of the R704001 program that the system uses. If you leave this processing option blank, the system uses the ZJDE0002 version.

8.3 Printing the Detailed Payment Report for SEPA (Release 9.1 Update)

This section provides an overview of the SEPA Credit Transfer Report, and discusses how to print the SEPA Credit Transfer Report.

8.3.1 Understanding the SEPA Credit Transfer Report

If you want to create a PDF with the details of the payment, you must republish the XML file using the template for PDF creation (RD70401B). In this PDF, the system includes for each record:

  • Name, address, and Tax ID of the originator

  • IBAN and BIC of the originator's bank account

  • Name, address, and Tax ID of the beneficiary

  • IBAN and BIC of the beneficiary's bank account

  • Requested execution date

  • Amount of each payment, in the currency of the transaction

  • Details of the remittance information: invoice number, invoice date, gross amount, payment amount, and discount amount taken of each document

8.3.2 Printing the SEPA Credit Transfer Report

The Payment Information Extractor Report (R704001) for SEPA includes two report definitions: RD70401 (SEPA Credit Transfer Initiation Format RD), and RD70401B (SEPA Credit Transfer Report RD). When you run the Write process in the Work With Payment Groups program (P04571) that is set to P704001, version ZJDE0002, the system uses the RD70401 and generates the XML.

To generate the detailed PDF report:

  1. Access the Batch Versions program (P98305W).

  2. On the Available Version form, select Submitted Jobs from the Form menu.

  3. On the Submitted Jobs Search form, you can access the Payment Information Extractor - COMM -04 XML report and a PDF that shows if the process has completed successfully or with errors or warnings. Select the XML report line, and then select Republish RD from the Row menu.

  4. On the Publish Report Definition Prompt form, select Prompt for Report Definition, and then click OK.

  5. On the Report Definition Submission Search & Select form, select the RD70401B report and click Select, and then click OK.

  6. On the Submitted Jobs Search form, select View RD Output from the Row menu.

  7. Select and open the SEPA Credit Transfer Report RD PDF file. View the transaction details in the PDF file.