The countdown to the SEPA deadline beginning 2014 has started
Posted on April 05, 2013
SEPA or Single Euro Payments Area is a payment-integration initiative of the European Union, for simplification of bank transfers, for domestic as well as for European payments, and this will become the standard payment instrument within 33 countries (28 EU member states (incl. Croatia), 4 EFTA member states & Monaco).
SEPA includes SEPA Credit Transfer and Direct Debit. These two payment forms are used for euro payments within the SEPA area. Up to now it was not possible to perform foreign direct debits, however since SEPA Direct Debits in 2009 you can collect in the whole area.
Advantages for your company are: • One Payment method for SEPA Credit Transfers and SEPA Direct Debits • Equal bank charges in all Euro Area Countries • Standardization of euro payments • Reduction of costs of electronic money and payment transactions • Reduction of cash and increase of electronic money • Increase safety of electronic money flow
SAP supports SEPA in the latest versions of its software. Whereas up to today each country has its own national payment format, SEPA will harmonize and standardize the European payments with its new payment format. This format is according to the interbank European standard SEPA XML ISO 20022.
SAP has developed a standard SEPA package to implement for the SEPA conversion. This standard package includes the 2 payment method formats described by the EU regulation: payments (SEPA Credit Transfer) and collections (SEPA Direct Debit).
The deadline to SEPA migration is 1 Feb 2014, so the countdown has begun!
If the Treasury department wants to be ready for SEPA they need to act fast, because the SEPA conversion cannot be underestimated. Due to necessary changes and continuous bank communication, the lead time can reach easily 3 months or more. Also take in mind that the IBAN master data conversion for house banks, creditors and debtors is a must for SEPA conversion. To help you within this process, YOU can support you to benefit from it is previous experiences. YOU has a proven and effective method for the implementation of SEPA within SAP.
If you want to learn more about our approach and the possibilities for your organization, fill in this FORM
Our experts will be happy to explain you YOU’s approach in detail and answer all the questions you certainly have.