1. Using Receivables Credit to Cash
  2. Logical Grouping in ISO 20022 SEPA and CGI Direct Debit Messages

Logical Grouping in ISO 20022 SEPA and CGI Direct Debit Messages

SEPA (Single Euro Payment Area) is a system that provides a standardized process for credit transfers, an improved debit system, and a cheaper way for individuals and firms to make transactions within European member countries or regions. The SEPA direct debit message format, which

For the SEPA direct debit message format, Oracle Fusion Payments supports the following three-level XML message structure:

  • Level 1: Group header

  • Level 2: Payment information

  • Level 3: Direct debit transaction information

The following logical groupings are allowed in each transmission file:

  • Mixed Grouping: Each file contains several settlement batches. Each settlement batch contains several transactions.

    A group is created with the least common attributes. For example, if there are three transactions with the same debtor but different mandates sequence types, such as first, recurring, or one-off, then Payments creates three separate groups. However, if two of the transactions have same mandate sequence type, then two groups are created.

  • Grouped: Each file contains only one settlement batch. The settlement batch contains several transactions.

  • Single: Each file contains several settlement batches. Each settlement batch contains only one transaction.

Note: Payments only supports mixed grouping per the SEPA requirements.

Level 1 - Group Header

The group header level of the SEPA direct debit message format contains settlement batch information that maps to a row in the IBY_BATCHES_ALL table. The group header is mandatory and repetitive. Repetitive means that one or more blocks of group header information can be included in a SEPA direct debit message format file.

The group header contains elements such as the following:

  • Message identification

  • Creation date and time

  • Number of transactions

  • Control sum

  • Initiating party

Level 2 - Payment Information

Payment information is the middle level of the SEPA direct debit message format. It contains attributes common to a group of transactions. Transactions are grouped at the payment information level only if selected in the funds capture process profile. Otherwise, the payment information level doesn't exist in the SEPA direct debit message.

The payment information level is mandatory and repetitive. Repetitive means that one or more blocks of payment information can be included in a SEPA direct debit message format file. The payment information level contains elements related to the credit side of the transaction, such as the following:

  • Payment method

  • Number of transactions

  • Group identifier

  • Creditor legal entity

  • Creditor business unit

  • Creditor's bank account details

  • Internal bank account

  • Currency

  • Charge bearer

  • Creditor identification number

  • Settlement date

  • Sequence type

  • Service level

  • Local instrument

  • Category purpose

  • Charge bearer

  • Collection date

  • Creditor details

Note: The preceding elements always appear in the SEPA direct debit message format.

Both SEPA and CGI (Common Global Implementation) are initiatives that promote wider acceptance of ISO20022 as the common XML payments standard used between businesses and banks. They can differ, however, in element definition, depending on whether or not a debit authorization is used.

The following table describes differences between the SEPA and CGI direct debit messages as they relate to the definition of certain message elements, which is determined by the existence or nonexistence of a debit authorization.

Element

SEPA and CGI Direct Debit Messages with a Debit Authorization

CGI Direct Debit Messages without a Debit Authorization

Creditor

Creditor (First Party Legal Entity) per the debit authorization.

Creditor (First Party Legal Entity) related to remittance bank account used on the invoice.

Ultimate Creditor

Creditor (First Party Legal Entity) per the invoice if different than debit authorization.

Creditor (First Party Legal Entity) per the invoice.

When you select payment grouping on the Create Funds Capture Process Profile page, the transactions are grouped within the settlement batch based on the values of the selected parameters. The logical grouping elements, however, are either all enabled or all disabled, depending on whether or not you select the Enable grouping option in the Payment Grouping Rules section on the Create Funds Capture Process Profile page. The logical grouping elements are the same for SEPA, as well as for CGI.

Level 3 - Direct Debit Transaction Information

Direct debit transaction information is the level of the SEPA direct debit message format that contains an individual transaction for each settlement batch. Each individual transaction maps to a row in the IBY_TRXN_SUMMARIES_ALL table. The direct debit transaction information level is mandatory and repetitive. Repetitive means that one or more blocks of direct debit transaction information can be included in a SEPA direct debit message format file.

The direct debit transaction information level contains elements such as the following:

  • Payment identifier details

  • Payment amount

  • Debit authorization details

  • Ultimate creditor

  • Debtor

  • Debtor's bank account

  • Purpose code

  • Remittance information

Note: Some of the preceding elements appear conditionally in the SEPA direct debit message format. The batch booking option on the Create Funds Capture Process Profile page determines whether the batch booking element is set in the SEPA direct debit message. If you select the batch booking option, it applies to all transaction groups of the payment file.