SEPA SCT Setups in R12

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SEPA:


SEPA stands for Single European Payment Area.  The SEPA initiative involves creation of a zone for European countries. In 2008, the SEPA zone included 31 countries in which all payments in Euro are considered domestic.  SEPA aims at improving the efficiency of cross border payments by developing common standards, procedures, and infrastructure to improve the economies of scale.

 SEPA SCT:

A SEPA Credit Transfer (SCT) is a payment instrument for the execution of credit transfers in Euro between customer payment accounts located in SEPA. The SEPA Credit Transfer is executed on behalf of an Originator holding a payment account with an Originator Bank in favor of a Beneficiary holding a payment account at a Beneficiary Bank.

Setups:


Prerequisites:

A) Bank Identifier Code (BIC) for the suppliers bank branch
B) International Bank Account Number (IBAN) for the suppliers bank account
C) The Bank Charge Bearer field in the Supplier setup is equal to SLEV :
D) For SEPA transactions the payment method must be Electronic  
E) For SEPA transactions the Payment Currency Must be in EURO

1. Seeded XML Template

In Release 12 SEPA is a Payment format like any other Payment format, To support SEPA implementation, Oracle Payments included the following components:
 
Seeded XML Template : Oracle Payment now includes an XML template for specifying the SEPA payment format. This template is seeded and is used for creating the SEPA payment file
 
Navigate to Payables Manager --> Setup -->  Payments --> Payment Administrator

Click on the Go to task icon beside  XML Publisher Format Templates 
Query with following payment template.
    
    - SEPA Credit Transfer Initiation Template With Structured Remittance Details
    - SEPA Credit Transfer Initiation Template   


2. Create Payment Format: 

Navigate to payable responsibility --> Setup --> Payment --> Payment Administrator-->  Payment Setup --> Formats > Formats

Click on Create

Enter the following information

Code: SEPA_SCT
Name: SEPA Payment Format Credit Transfer
Data Extract: Oracle Payment Fund Disbursement Payment Instruction Extract Version 1.0
XML Publisher Template: SEPA Credit Transfer Initiation Template


Click on Apply.

3.Create Payment Process Profiles

Navigate to payable responsibility --> Setup --> Payment --> Payment Administrator
Click on the Go to task icon beside 'Payment Process Profiles'  
Click on Create

Enter the following information




Under Payment Instruction creation Rules Enable
First Party Organization, First party Legal Entity, Internal Bank Account and Payment Currency.





Apply.
Assign Payment Instruction Format as ‘SEPA Payment Format Credit Transfer’




4. Assign Payment Format to Payment Documents

Navigation: Payables Manager --> Setup --> Payments --> Bank Accounts

Query bank account with your bank account
Click on GO

Select bank account and click on ‘Manage Payment Documents’.
Click on your payment Document Update button
Assign SEPA Payment Format Credit Transfer payment format.
Click on Apply button.


 


5) The default value for Grouping mode in PPR is Mixed. The Payment Instruction grouping parameters for Grouped is: 
 
       First Party Legal Entity  
       Internal Bank Account  
       Payment Date  
       Payment Reason  

6) Batch booking added on PPP is unchecked by default. It indicates whether the bank should book transactions individually or per payment group. When payments are batch booked, they will generate a single bank statement line entry per group. This is optional.

7) For a payment batch created in Oracle Payments to appear in Oracle Cash Management (for Reconciliation), it is mandatory that the minimum grouping parameters used in payment instruction are as follows:

Internal bank account
Payment currency
First Party Organization (Operating Unit)