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SEPA Series Part 4: FinanceSuite Payment Management and SEPA

Less than 100 workdays are left now: From 1 February 2014, you will be obliged to use SEPA formats for European payments. National formats will no longer be permitted in the SEPA region, then. A transition period until 2016 applies to some niche products and particular countries where local files can still be submitted after 1 February 2014. According to recent studies one out of every 3 companies are at risk not be ready by the deadline. Those who have not yet started the SEPA migration or are at the beginning of the process should hurry, as there will be no back-up plan.

For payment transactions, SEPA means that payments will have to made by using the standardised XML formats for payment initiation (pain), and bank number and account number will need to be converted to BIC and IBAN. BIC and IBAN need to be adjusted in the master data. If you have not done so yet, you will need to start the migration of your payments to the XML formats in time before 1 February 2014. Only then will the banks be able to process your payments without any problems. Failing this, payment rejects and higher costs will be the logical result.

If you already use our FinanceSuite Payment Management, you are well prepared for SEPA. The product already has SEPA payment formats and validations embedded. With the FinanceSuite Payment Management you are able to execute your credit transfers and direct debits according to the new regulations in the SEPA format (SEPA Credit Transfer – SCT or SEPA Direct Debit – SDD). Besides the strict SEPA compliance organisations can extend their efficiency by moving into a Payment or Collection Factory; both solutions are supported by Hanse Orga’s FinanceSuite. FinanceSuite Mandate Management is available to you to administer your direct debit mandates within your SAP system and to keep an eye on all changes in one central location.

Even if companies have to invest a lot of time and money to make all data and systems ready for SEPA, SEPA is a great gain of efficiency for companies. The uniform formats will support standardised and optimised processes, transaction costs will decrease and payments will be more secure.

Please do not hesitate to contact us, if you would like to get more information on the FinanceSuite Payment Management or would like to find out how we can support you in your SEPA migration through our competent SEPA consulting.