SEPA SDD Setups in R12

By
Advertisement

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