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 updates are based on SEPA rule book and SEPA implementation guidelines, 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.
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.
(Release 9.2 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.