SEPA SDD Setups in R12

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 SDD:

The SEPA Direct Debit (SDD) Schemes allow a creditor (biller) to collect funds from a debtor's (payer's) account, provided that a signed mandate has been granted by the payer to the biller. A mandate is signed by the debtor to authorise the creditor to collect a payment and to instruct the debtor's bank to pay this collection. Mandate forms to be completed by debtors (customers purchasing goods or services) are usually provided by creditors (retailers or service providers) themselves.

The European Payments Council (EPC) offers guidance to creditors on the creation of streamlined, easy-to-use Single Euro Payments Area (SEPA) mandates. In addition, the EPC provides translations of the mandate text, as specified in the SDD Core Rulebook and the SDD Business to Business (B2B) Rulebook, into the SEPA languages. As a result, businesses and public administrations collecting payments in SEPA are in a position to create user-friendly SEPA mandate forms, which best meet, their needs.

Setups:

1. Define Payment Template:

Navigation: Payment Setup Administrator→ Oracle Payments Setup→ Formats→ XML Publisher Format Templates 

GO to Task
Click on Create Template button

Define Payment Template With following Details

Name	Enter your template name	Type	XSL-XML
Code	Enter Code	Start Date	22-May-2009
Application	Payments	Description	Enter Description
Data Definition	iPayment Funds Capture Instruction Extract 1.0	Default Output Type	xml

Assign the IBY_SEPA_DD_CORE_3_3_STD template and click on Apply button

 

Note: We can use standard payment template also or else we can use our own custom payment template

2. Assign custom Template to a standard payment format

Navigation: Payment Setup Administrator→ Oracle Payments Setup→ Formats→ Formats

GO to Task

Enter the name SEPA Core Direct Debit Collection Initiation 3.3 Structured and click on GO button

Change the template name from SEPA Core Direct Debit Collection Initiation 3.3 Structured to your custom template which is defined before this step.

Click on Apply button

3. Define Payment System

Navigation: Payment Setup Administrator→ Oracle Payments Setup→ Payments Setup→ Shared Setup→ Payment Systems→ Payment Systems

Click on ‘Create’ button to open ‘Create Payment System’ page

Define payment system with the following details

Code	SEPA PS	Network communication Character Set
Name	SEPA Payment System	Transmission Servlet Base URL
Processing Model	Processor	Administrative URL
Bank

Supported Capabilities
Funds Capture		Funds Disbursement
Credit Card		Bank Account Transfer
Bank Account Transfer	Yes
Debit Card

Formats		Transmission Protocol
Name	Type	Name
SEPA Core Direct Debit Collection Initiation 3.3 Unstructured	Funds Capture Settlement Batch	Local File System Delivery
SEPA Core Direct Debit Collection Initiation 3.3 Structured	Funds Capture Settlement Batch
SEPA Core Direct Debit Online Payer Verification	Funds Capture Settlement Batch

Settings Required by Payment System
Code	Name	Type
SEPA_INITIATING_PARTY_NAME	SEPA Initiating Party Name	Character
SEPA_INITIATING_PARTY_ID	SEPA Initiating Party Identifier	Character
SEPA_BATCH_BOOKING	SEPA Batch Booking Option	Character
SEPA_INITIATING_PARTY_ISSUER	SEPA Initiating Party Identifier Issuer	Character

Choose ‘Save and Add Accounts’ button to open ‘Payment System Accounts’ page

Enter the following details in payment system accounts

Payment System Accounts
Name	Enter your Operating Unit Name
Operating Unit: Setting
Code	Name	Data Type	Value
SEPA_BATCH_BOOKING	SEPA Batch Booking Option	Character	false
SEPA_INITIATING_PARTY_ID	SEPA Initiating Party Identifier	Character	Enter BIC number
SEPA_INITIATING_PARTY_ISSUER	SEPA Initiating Party Identifier Issuer	Character	XX0101
SEPA_INITIATING_PARTY_NAME	SEPA Initiating Party Name	Character	Enter your Operating Unit Name

Choose ‘Apply’

4. Define Funds Capture Process Profile

Navigation: Payment Setup Administrator→ Oracle Payments Setup→ Payments Setup→ Funds Capture Setup→ Funds Capture Process Profiles

Select Payment System ‘SEPA Payment System’ and Choose ‘Create’ button to open ‘Create Funds Capture Process Profile’

Enter the following details

Code	SEPA Direct Debit PP	Payment System	SEPA Payment System
Name	SEPA Direct Debit Process Profile	Description
Process Type	Bank Account

Online Payer Verification		Settlement
Outbound Format	SEPA Core Direct Debit Collection Initiation 3.3 Structured	Outbound Format	SEPA Core Direct Debit Collection Initiation 3.3 Structured
Transmission Protocol		Accompanying Letter Format
Inbound Response Format	IBY_SEPA_DD_CORE_INIT_3.3_STRD	Transmission Protocol	Local File System Delivery
		Inbound Response Format

Payer Notification		Acknowledgement
Format		Outbound Format
Automatically submit at Settlement Completion		Transmission Protocol
Condition	All Receipts	Inbound Response Format
Delivery Method
Override Payer Delivery Method Preference

Settlement Batch Creation Rules
Settlement Grouping		Settlement Limit
First Party Organization		Amount Currency
First Party Legal Entity	Yes	Exchange Rate Type
Internal Bank Account	Yes	Total Amount
Settlement Currency		Number of Settlements
Settlement Date

Payment System Accounts
Name	Account Funds Capture Process Profile	Transmission Configuration
		Online Payer Verification	Settlement	Acknowledgement	Enabled
Enter Operating Unit Name	SEPA Direct Debit Process Profile Interflora British Unit		Dummy Local File Directory		Yes

Choose ‘Apply’

5.DEFINE PAYEES

Navigation: Payment Setup Administrator→ Oracle Payments Setup→ Payments Setup→ Funds Capture Setup→ Payees

 

Choose ‘Create’ button to open ‘Create Payee’ page

Enter the following details

Code	SEPA PAYEE
Name	SEPA Payee
Merchant Category Code

Payment system accounts		Assign Operating Unit
Payment System	SEPA Payment System	Name	Enter OU Name
Payment system account	Enter OU Name

		Supported Processing Types
		Bank Account Transfer	Yes
		Debit Card
		Credit Card

Default payment Systems
Payment Method	Payment System Account	Funds Capture Process Profile
PINless Debit Card
Credit Card
Bills Receivable
Bank Account Transfer	Enter OU Name	Enter your FCPP Name

Choose ‘Create’ button under Routing rules

Routing Rules
Payee	SEPA Payee
Rule Name	SEPA Direct Debit Rule

Conditions
Payment Method	Bank Account Transfer
Criterion	Operator	Value
AR Receipt Method	Equal to	Enter Receipt Method
Payer Bank Country	Equal to	Ireland
Payee Bank Country	Equal to	United Kingdom
Currency	Equal To	Euro

Results
When all conditions are met, the following payment system account and funds capture process profile will be used for the transaction
Payment System Account	Enter OU Name
Funds Capture Process Profile	Enter FCPP

DEFINE DEBIT AUTHORIZATIO

Navigation: Receivables Manager→ Customers→ Customers

The EBS R12 provides a user interface to store the direct debit authorization (mandate) details in the system. It is mandatory to have an active direct debit authorization in the system to receive funds using the direct debit payment method. UI ‘Enter Debit Authorization’ provides facility to setup direct debit mandate for customer at bank account level.

Query the customer to whom Debit Authorization is required to be defined

Choose ‘Details’ for the customer account in which debit authorization is to be defined to open ‘Update Account’ page

Choose ‘Details’ for the customer site in which debit authorization is to be defined to open customer site

Choose ‘Payment Details’ Tab

 

Under ‘Bank Account Transfer’ region select the bank account and choose ‘Debit Authorization’ icon to open ‘Enter Debit Authorization’ page

Below are the details about attributes of the direct debit authorization record in the system:

•             Payer Granted Authorization to Debit Bank Account flag - If this is unchecked, Mandate will be considered as inactive.

•             Unique Authorization Reference ID - is a user entered number and is required for SEPA transactions.

•             Authorization Signing Date - date when mandate was signed. No SEPA transactions with date before this date will be created using this mandate.

•             Authorization Cancellation Date - Date on which mandate has been cancelled. No SEPA transactions with date after this date will be created using this mandate.

•             Transaction Type – user can select one of two possible values: Recurrent / One off.

•             Reason for Amendment – is required to be entered when a mandate is amended.

•             Authorization Version Number – is a read only field and displays number of times new version for mandate has been created. A first created mandate will have revision number 1.

•             Count of debit transactions – is a read only field and displays how many direct debit transactions have been created under the mandate.

•             Authorization Inactive Date – user will enter in this field the date when mandate become inactive. No SEPA transactions with date after this date will be created using this mandate.

•             Authorization Method – not used for SEPA process

•             Authorization Reference – not used for SEPA process

•             Pre-notification required – this flag will be checked if pre-notification is required. AR uses this field for creating pre-notifications.

Payee Details:

•             Payee Legal Entity – user will select the Legal Entity

•             Payee Address - this field will be automatically populated based on Payee Legal Entity selected and is a read only field.

•             Payee Identifier - a user entry field that will be validated

 Payer Details:

•             Customer Address – user will select customer site address in this field.

•             Customer Bank Account IBAN – will be automatically filled with IBAN of debtor bank account. It is a required field and must be entered at customer bank account level.

•             Customer Bank BIC - will be automatically filled with BIC of debtor bank. It is a required field and must be entered at customer bank branch.

Enter the following Details in Enter Debit Authorization

Payee Name	Enter Customer Name	Bank Account Number	Enter Bank Account Number
Payer Granted Authorization to Debit Bank Account	Yes
Unique Authorization Reference ID	Enter UARID	Count of Debit Transactions
Authorization Signing Date	27-Nov-2012	Authorization Inactive Date
Authorization Cancellation Date		Authorization Method
Transaction Type	Recurrent	Authorization Reference
Reason for Amendment		Pre Notification Required	Yes

  

Payee Details		Payer Details
Payee Legal Entity	Enter Legal Entity Name	Customer Address
Payee Address	Enter Address	Customer Bank Account IBAN	Enter IBAN
Payee Identifier		Customer Bank BIC	Enter BIC