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Function documentationSEPA Direct Debit Orders

 

SAP Deposits Management for Banking, Suite Edition supports both incoming SEPA direct debit orders (SDD) and outgoing (one-time and recurring) SDD orders. SEPA is the abbreviation for the Single Euro Payments Area, where citizens, companies, and other economic actors can make and receive payments in Euro. The SEPA program, which is driven by the European Payments Council, harmonizes millions of retail payments.

Integration

The functions for SDD orders are integrated in the screens for the following:

  • Account master data — reference accounts for:

    • Account closure

    • Account balancing

    • Fixed term collection

  • Payment orders

  • Standing orders

  • Forward orders

  • Payment items

  • Condition category for the value date and value date that is subject to final payment

  • Transaction type settings in Customizing

  • SEPA settings in Customizing

  • Mandate settings in Customizing

The functions are also integrated in mandate management, which enables you to create, change, and display mandates for the recipient party and the ordering party. The recipient party (the sender of the mandate) can lock a mandate, or set a global lock for all transactions originating from a particular ordering party.

The system identifies an order as an SDD order if the following applies:

  • The ordering party transaction type is set to C (Credit).

  • You have set up the payment control of the payment method as being According to SEPA.

  • The recipient transaction type has the mandate check enabled.

Prerequisites

For incoming SDD orders you must have selected the mandate check for recipient transaction type in the Customizing activity Maintain Transaction Types.

For outgoing SDD orders you can do the following in Customizing:

  • Specify whether a sender payment item is to be posted immediately or sent to the payment transaction system to ensure that the sender party is credited on the due date and not on the posting date of the payment order.

    If the payment order status is Sent To PTS, the system does not create a payment item. Instead, the payment item is sent to the payment transaction system, where it is posted on the due date of the payment order. This is a final status.

  • Specify whether a prenote is to be created, and what type it is to be, depending on whether the payment order is sent to the payment transaction system. Initially, the prenote creation is simulated and checks are run during the payment order check. The payment order cannot be created unless the checks are successful and the prenote can be created.

  • Specify the type of SEPA direct debit, for example, Core or B2B.

  • Base the processing time on the SEPA direct debit type.

  • Update mandate usage according to either the posting date or due date.

  • Implement the following Business Add-Ins in Customizing for Bank Customer Accounts (IS-B-BCA), under Start of the navigation path Account Management Next navigation step SEPA Next navigation step Business Add-Ins (BAdIs) End of the navigation path:

    • BAdI: Validation of IBAN and SWIFT

    • BAdI: Last Use of Recurrent Mandate for Payment Order

    • BAdI: Balance Determination for SDD Order Collection

For more information about specific prerequisites see the following:

Features

Incoming SEPA Direct Debits (Passive SDD Transaction)

When payment items are externally initiated, the system checks the mandate locks set by the recipient party before you post the payment item.

The recipient party account also provides an overview of the locked mandates.

The system supports extended mandate checks for incoming SDD orders so that, for example, you can process SEPA B2B direct debit orders.

All mandate checks are based on the mandate data that you define for the recipient party.

The system posts externally initiated SEPA direct debit orders for an account only if there is no mandate lock on the account of the paying party.

Note Note

You can use Business Transaction Event (BTE) 00010125 to extend or override the mandate checks. For more information, see the documentation in theFunction Builder.

End of the note.
Payment Item Screen

The Transaction tab page on the payment item screen includes the Creditor ID and Mandate Reference fields.

The Administr. tab page has an indicator that shows whether the mandate check or the extended mandate check was successful or overridden.

If you have activated the mandate check in the transaction type in Customizing, the system checks that the following applies when you post an externally initiated payment item on the account and if the referenced mandate is found in the system:

  • The mandate is active.

  • A one-time mandate has not been used yet.

  • There is no valid global lock on the posting date.

If there is an error, the payment item goes into postprocessing, where you can force the posting if required.

If you have activated the extended mandate check for the transaction type in Customizing, the system checks that the following applies:

  • There is a mandate in the mandate framework with the same mandate ID and creditor ID as entered in the incoming payment item.

  • The mandate is active and valid on the posting date.

  • The BIC (SWIFT) and IBAN on the payment item is the same as that on the mandate.

  • The customer checks as defined in the BAdI: Execute Extended Mandate Checks are fulfilled.

Outgoing SEPA Direct Debits (Active SDD Transaction)

The system supports one-time SEPA direct debit orders by means of payment orders and forward orders, and recurring SEPA direct debits by means of standing orders, payment orders, and forward orders.

If any checks fail, the system does not allow you to save your order (payment order, standing order, or forward order).

Note Note

All mandate checks are based on the data that you define for the ordering party.

End of the note.
Value Date Condition and Value Date Subject to Final Payment Condition

The bank generally triggers the SDD order for collection some days before the due date. To enable the ordering party account to reflect the correct balance on the due date, you can do the following:

  • Calculate the value date of the SDD payment order based on the due date.

  • Calculate the value date subject to final payment (SFP) based on the due date. This enables you to calculate the subject to final payment date as the due date. When you specify a due date for the payment order, the available amount of the ordering party increases only on the due date.

If an account is assigned a value date condition or a value date SFP condition that is based on the due date, the condition is considered when the payment order has a due date. In all other cases, the payment order continues to consider the posting date in the calculation of the value date balance and the SFP balance.

Mandate Checks

The system checks that the following applies if the mandate check is selected for the recipient transaction type:

  • That the ordering party mandate exists, is unique, and is valid on the current posting date or next run date.

  • The creditor ID exists.

  • The mandate type is either one-time or recurring . If the mandate type is for one-time collection, the mandate has not already been used.

  • The mandate is active.

  • The creditor ID does not have a global lock. This check is not executed if no creditor ID is entered.

    Note Note

    The mandate reference, creditor ID, and recipient IBAN uniquely identify a mandate stored in the ordering party mandate. All the above checks are based on ordering party mandates only.

    You can make Customizing settings so that the system issues an information message rather than a warning message if the creditor ID cannot be found. If you do this, the system does not execute the above checks except the check for the mandate existence. In Customizing for Bank Customer Accounts (IS-B-BCA), chooseStart of the navigation path Tools Next navigation step Change Message Control End of the navigation path

    End of the note.
Additional checks
  • The mandate is valid on the due date.

  • If the mandate has not been used in the past 36 months, it can no longer be used. The system calculates the period from the due date of the last use.

  • The subsequent use of a mandate cannot have a due date before the due date of the first use.

  • The processing time of the related transaction type has been specified in Customizing activity Define SEPA Properties for Recipient Transaction Types under Start of the navigation path Account Management Next navigation step SEPA End of the navigation path.

    If this is not the case, the system uses the values in the Customizing activity Define Processing Time for SEPA Orders under Start of the navigation path Account Management Next navigation step Default Values End of the navigation path for payment orders.

SDD Order Checks

If you have set the payment control of the payment method to According to SEPA, and if the ordering party transaction is a credit and the mandate check is enabled for the recipient transaction type, the system checks that the following applies:

  • The Customizing settings in the Customizing activity Define SEPA Properties for Recipient Transaction Types have been made for the recipient transaction type in the standing order

  • The recipient party details consist of the IBAN and BIC (SWIFT). The BIC field is an optional field for SDD orders.

  • The transaction currency of the payment order is Euro

  • The earliest posting date is not after the latest posting date

  • You have entered the due date. If the due date is not a bank working day, the system issues an information message.

  • Based on the due date, you can post the SDD order on the current transaction posting date, which must be on or between the earliest and latest posting dates

  • The next run date of the recurring SDD orders is between the earliest and latest posting date

  • The posting date of the payment order is not before the transaction posting date (backdating is not possible)

  • If you have set SEPA properties for the recipient transaction type, the mandate type has the same properties, for example, B2B.

Additional Features

You can do the following for an SDD order:

  • The mandate checks and the SDD order checks are triggered during the release process.

  • The system writes change documents for the mandate reference, the creditor ID, and the due date.

  • When you have successfully posted an SDD order, the system updates the usage of the mandate. You can view the mandate usage on the mandate screen.

Example

The following are examples of how the system identifies an SDD order when you create a forward order, standing order, or payment order:

Transaction type of the ordering party

Mandate checkbox selected in Customizing for recipient transaction type

Payment method is according to SEPA

Customizing settings made in activity Define SEPA Properties for Recipient Transaction Types

Result

Credit

Yes

Yes

Yes

SDD can be created.

Debit

Yes

Yes/No

Yes/No

Not an SDD, but the system executes mandate checks based on ordering party mandates.

Debit

No

Yes/No

Yes/No

Not an SDD order, and no additional checks are required.

Credit

Yes

No

Yes/No

Not an SDD order, but mandate checks are executed.

Credit

Yes

Yes

No

Error during creation of the SDD order because you need to make settings in Customizing under Define SEPA Properties for Recipient Transaction Types.

Credit

Yes (ordering party transaction type)

Yes

Yes

The mandate checks are triggered for ordering party item and these are unsuccessful as a mandate ID cannot be entered for the ordering party.