Single Euro Payments Area (SEPA) Update

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Introduction The Single Euro Payments Area (SEPA) is an initiative of the European banking industry that aims at improving the efficiency of cross border payments by developing common standards, procedures, and infrastructure to improve the economies of scale. The SEPA territory consists of 32 European countries and Iceland, Liechtenstein Monaco, Norway and Switzerland. Migrating to SEPA Two new SEPA instruments were introduced in 2008 (SEPA credit transfer) and 2009 (SEPA core direct debit). EU Regulation No 260/2012 establishes the technical and business requirements for credit transfers and direct debits in euro. The regulation is also referred to as the SEPA end -date regulation and defines the deadlines for the migration to the new SEPA instruments. The deadline for the euro area is 1 February 2014 and for non-euro area Member States is 31 October 2016. As of these dates, the existing national euro credit transfer and direct debit schemes will be replaced. Oracle E-Business Suite provides support for SEPA as follows The SEPA Credit Transfers functionality is currently available for Releases 11.5.10, 12.0.x and 12.1.x. The SEPA Core Direct Debit functionality is currently available for Releases 11.5.10, 12.0.x and 12.1.x The latest Rulebook version supported is v6.0. To assist our customers with the migration to SEPA, a number of additional features are planned for Oracle E-Business Suite R12+ and targeted for availability starting Q3 CY2013. This document describes the features that are currently planned and will be frequently updated as additional requirements are evaluated and included in our plan. Optionally, customers can contact validated partners (http://www.oracle.com/partners/index.html) to provide updated formats.

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Requirement SEPA Credit Transfer Version 7.0 In November 2012 the European Payments Council (EPC) updated the SEPA Credit Transfer (SCT) Rulebook with changes that take effect Feb 1, 2014 After this date, banks will be required to support the latest two versions of SEPA (7.0 and 6.0) ISO 20022 Credit Transfer Format for nonEuro Payments

11.5.10 Solution SEPA Credit Transfer Version 7.0 Format is planned for Q2 2014

R12 Solution SEPA Credit Transfer Version 7.0 Format is planned for Q2 2014

Credit Transfers

A white paper detailing how customers can extend the currently available SEPA format to support non euro payments is available via MOS note 1591854.1

ISO 20022 format for Credit Transfers based on the CGI (Common Global Implementation) standards version 3 is planned for Oct 2013 Reference enhancement 12996818

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Requirement Country Specific Data Elements in SEPA Credit Transfer Format

11.5.10 Solution A white paper detailing how customers can extend the currently available SEPA format to include country specific data available via MOS note 1591854.1

R12 Solution Country specific data elements are optional and vary from country to country. Customers can use descriptive flexfields to capture country specific data elements related to invoices and payments and configure the payment format per the guidelines provided in the white paper Format Customization in Oracle Payments for Oracle Applications Release 12 white paper (Doc ID 787467.1). If the elements are related to setup entities then the extensibility feature in IBY can be used to capture such data elements in the disbursement extract and users can configure the payment format.

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Requirement Additional Optional Services (AOS) Data Elements in SEPA Credit Transfer Format listed on the EPCs (European Payments Council) homepage

11.5.10 Solution A white paper detailing how customers can extend the currently available SEPA format to include Additional Optional Services (AOS) data elements is available via MOS note
1591854.1

R12 Solution Customers can use descriptive flexfields to capture AOS data elements related to invoices and payments and configure the payment format per the guidelines provided in the white paper - Format Customization in Oracle Payments for Oracle Applications Release 12 white paper (Doc ID 787467.1). If the AOS elements are related to setup entities then the extensibility feature in IBY can be used to capture such data elements in the disbursement extract and users can configure the payment format.

Flexible Definition for the Initiating Party

Not Planned.

The initiating party details like name, identification and scheme name passed in payment file can be configured in the payment system account settings.

Payment Process

Requirement Credit Transfer Exceptions To encourage fully automated straightthrough-processing (STP) of SEPA transactions along the entire payment processing chain, the European Payments Council (EPC) published recommendations on the mapping of SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD) Rulebook requirements to payment reporting between banks and customers Banks can use this to send payment status reports which include the status of the payment transactions SEPA Direct Debit Version 7.0 In November 2012 the European Payments Council (EPC) updated the SEPA Direct Debit (SDD) Rulebook with changes that take effect Feb 1, 2014. After this date, banks will be required to support the latest two versions of SEPA (7.0 and 6.0 as of March 2013)

11.5.10 Solution Not planned

R12 Solution The ability to import payment acknowledgement reports containing payment status for bank received payment files is planned for Q4 2013 Users will be able to: map bank acknowledgment codes to system acknowledgment codes import acknowledgment data via API import multiple acknowledgments per payment via API review acknowledgment details, including bank reported errors and status search payment transactions based on acknowledgement status

SEPA Direct Debit Version 7.0 Format is planned for Q2 2014

SEPA Direct Debit Version 7.0 Format is planned for Q2 2014

Direct Debits

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Requirement ISO 20022 Direct Debit Format for non-Euro Payments

11.5.10 Solution A white paper detailing how customers can extend the currently available SEPA format to support non euro payments is planned for Q4 2013 Reference enhancement 7520629

R12 Solution ISO 20022 format for Direct Debits based on the CGI (Common Global Implementation) standards version 3 is available via Patch 17016197:R12.IBY.B

Country Specific Data Elements in SEPA Direct Debit Format

A white paper detailing how customers can extend the currently available SEPA format to include country specific data elements is planned for Q4 2013

Customers can use descriptive flexfields to capture country specific data elements from Party, Internal Bank Account, External Bank Account, Bank Account Assignment, Payment System, Funds Capture Payment Method and Format entities and include them in the Funds Capture Extract.

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Requirement Additional Optional Services (AOS) Data Elements in SEPA Direct Debit Format listed on the EPCs (European Payments Council) homepage

11.5.10 Solution A white paper detailing how customers can extend the currently available SEPA format to include Additional Optional Services (AOS) data elements is planned for Q4 2013

R12 Solution Customers can use descriptive flexfields to capture data from Party, Internal Bank Account, External Bank Account, Bank Account Assignment, Payment System, Funds Capture Payment Method and Format entities and include them in the Funds Capture Extract.

Customer Payment Status Report

Not planned

V3 of the Customer Payment Status Report for SEPA Direct Debits is available via Patch 17016197:R12.IBY.B

Upload of Mandate Information A mandate is a contract between the debtor and the creditor, whereby the debtor allows the creditor to collect the agreed amount from its bank account. The mandate is issued by the creditors bank.

Mandate Management

Public API's (table and entity handlers) to update mandate information in Oracle Receivables is available via a patch referenced in MOS note 1560689.1.

The ability to upload and store mandate information from third parties via an API is available via Patch 17016197:R12.IBY.B

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Requirement Multiple Mandates per Debtor Account

11.5.10 Solution Not planned As a workaround, customers can create a bank account per mandate for the same debtor

R12 Solution Creation and display of multiple mandates per customer bank account is available via Pacth 17016197:R12.IBY.B Users will have the ability to assign a priority to the mandates so that the active mandate with the highest priority will be defaulted on the transactions

Mandate Reports

When conducting SEPA Direct Debits, companies are required to send a report to their bank, with an overview of all the related mandates. There are two reports that are required: A printable report and an XML Users can extract these details to create the file. required reports The XML file is based on the standards as described by the European Payment Counsel (EPC). The XML file can be sent separately to the creditors bank or included with the SEPA Direct Debit payment batch IBAN Length Validation Reference enhancement 5566250

All required mandate data can be entered: customer bank account unique mandate reference mandate type amendment details, etc.

All required mandate data can be entered: customer bank account unique mandate reference mandate type amendment details, etc. Users can extract these details to create the required reports Reference enhancement 12408018

IBAN Enhancements International Bank Account Number

Not planned

Country specific IBAN length validation is fixed via patch 16507244.

Payment Process (IBAN) is the unique identifier required for all SEPA Payments

Requirement Derive BBAN from IBAN

11.5.10 Solution Not planned

R12 Solution A code hook to allow customers to build logic or call third party software to derive the Basic Bank Account Number (BBAN) from IBAN is planned for Oct 2013 Reference enhancements 7008633, 7196776, 8399857 The ability to search on bank accounts by IBAN is planned for delivery in phases starting Q4 2013 Reference enhancement 8865203 The ability to update the BIC and IBAN values for existing bank accounts via an api is planned for Q4 2013 Reference enhancement 8399857

Search by IBAN

Not planned

Update BIC and IBAN for Existing Bank Accounts

Not planned