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Single Euro Payments Area (SEPA)

Implementation of Direct Debit-Technical Design

created by Vijay Simha on Oct 21, 2013 6:18 AM, last modified by Vijay Simha on Jan 31, 2014 2:19 PM
Version 3
Single Euro Payments Area (SEPA) Implementation of DD(Direct
Sep, 2013
SEPA stands for Single Euro Payment Area. Its a system that is designed to create
financial efficiency for countries using the currency Euro by providing a unified system in
which to perform financial transactions. The SEPA seeks to create a better system for
credit transfers, an improved debit system and a cheaper way for individuals and firms to
make transactions within member countries or regions. Implementation of SEPA makes
the customers life easier. Irrespective of the national area customers will be able to use
the same card for all euro payments and also they need only one bank account in euro
Introduction to SEPA process:
The below mentioned should be done for Implementation of SEPA business in any SAP system:
1. SEPA_Activation_Mandate_Management
Following are the activities which are to be done as part of this:
i. SEPA mandate management has to be activated for the usage with SDD CORE and SDD B2B
from FI-AR payment processing. Apart from activating the SEPA Mandate management
we need to maintain the SEPA Mandate management modifiable fields.

Below is the path for activating the SEPA Mandate Management and maintain the
modifiable fields.
IMG -> Financial Accounting -> Accounts Receivable and Account Payable -> Business
Transactions -> Incoming Payments -> Management of SEPA Mandates -> General

IMG -> Financial Accounting -> Accounts Receivable and Account Payable -> Business
Transactions -> Incoming Payments -> Management of SEPA Mandates -> Define
Modifiable Fields

ii. Creation of new DMEE Payment Format tree for SEPA credit transfer and SEPA direct debit.
SEPA_CT and SEPA_DD are the DMEE formats provided by SAP.
As we will be dealing with multiple countries it is always better to copy the DMEE
formats and create new ones. If there is any custom requirement for any country create a
user exit and assign to the field that needs to be changed dynamically.
2. Pre Notification with payment run :
With a direct debit pre-notification, Markets can inform a payer in writing in advance of
the debiting of his account. To do this, one has to schedule a run for the creation of direct
debit pre-notifications before the payment run, meaning before clearing the open items
and creation of payment media. These correspond in structure to the payment advice
notes, and therefore contain details of the run date, the amount to be collected, mandate
ID, Unified Creditor Identifier etc.
Following are the SAP notes to be implemented for SEPA Pre-notification.
Note Description
1679118 F110: Custom Selection for Batch Input
1760564 F110S: Selection Check for Customers and Vendors
1770425 F111/SEPA: Mandate rejected as invalid after change
1771071 FBCJ : Reversal possible despite cleared item
1776076 F110/F111 : BADI for SEPA Mandate usage
1780941 SEPA: Direct debit Pre-Notification
Valid SEPA mandate is not found in the system during
payment proposal processing

As part of the Note implementation 1780941, we need to implement manual steps given
below for importing the Standard SAP Form.
SAP has provided text file by using this file we need to import the object
F110_DD_PRENOTIF into SAP by executing program RSTXCRP. This is standard SAP form
which will be used for sending PreNotifications.
SAP has provided XML file by using this file we need to import the object
F110_DD_PRENOTIF into SAP using SFP transaction code. Once it is uploaded, activate
the form.
Once all the relevant OSS Notes are implemented for SEPA Direct debit pre-notification,
we will get option of checkbox for Pre-notification in F110 transaction and also pre-
notification relevant standard program RFFOAVIS_DD_PRENOTIF and script form
(F110_DD_PRENOTIF) available in the system.

The above check box is checked if we need to do SEPA prenotification.

RFFOAVIS_DD_PRENOTIF: This is the payment advice print program that is used to print
the pre-notifications the pre-notification
F110_DD_PRENOTIF: This is the standard SAP script which is used to send the pre-

Based on the user requirement, the form name can be changed
The new "direct debit pre-notification" object is visible in the payment run (F110), in the
document display (FB03), in the line item display (FBL5N) and in mandate display
(FSEPA_M4). It can be deleted again if the direct debit pre-notification customer objects
to it (for example, because the customer pays the bill himself). Otherwise, the posting
run and the payment medium creation are performed after the end of the specified wait
time based on the direct debit pre-notifications.
3. Creation of SEPA Mandates for payment transactions :
Before doing any transaction for any SEPA customer we need to have a mandate create
for the Customer.
Before creating a mandate the Customer Should have IBAN number.
Transactions used :
Creation FSEPA_M1
Change FSEPA_M2
NOTE: Mandates can also be created from the payment tab of the Customer Master XD01,
FD01, XD02,FD02.
NOTE: Mandate Number can be either External or Internal Number.
To make our work easier technically we can use the below procedure using the below
The table that is Master for all the SEPA mandates is SEPA_MANDATE.
SEPA_MANDATE: This is the Standard Smart form used to print the mandate details for
any customer.
Assume a file with the Customer and mandate Information is available
Check if the customer is created by checking in the KNB1 table.
If the Customer is present then check if the Customer has IBAN and BIC number.
Check if the mandate is not created for Customer with the mandate number using the BAPI
For the BAPI SEPA_MANDATES_API_GET pass the customer number in the importing
parameter to check if there is any mandate information present for the Customer
SEPA_GET_CRITERIA_MANDATE-snd_id = Customer Number .

ET_MANDATES contains the mandate information that is fetched from BAPI based on the Customer Number.

NOTE : SEPA_MANDATES_API_GET FM cannot be used for multiple mandate scenario. We can
write take MGUID from REGUH table and go to SEPA_MANDATE table and get the IBAN
number and mandate number.

Three BAPI'S are majorly used to Creation and updating of the mandate details of the
To fetch the Mandate information
for a particular Customer from the
Create the Mandate for a Customer BAPI_SEPA_MANDATE_CREATE1
Modification of Mandate details for a

Mandate Creation:
Use the BAPI BAPI_SEPA_MANDATE_CREATE1 to create the mandate .
BAPI_S_SEPA_MANDATE_COMMON structure which is importing parameter to the above
mentioned BAPI has to be filled with the mandate information .This contains both the
Sender (Customer Details ) and receiver details (Company code data ).

Then collect all the address information either from the file provided or from the customer
master data and fill the Sender information in the structure
Then based on the company code fetch the address details of the Company code and fill the
Receiver information in the structure BAPI_S_SEPA_MANDATE_COMMON.
ES_MANDATE_CREATED exporting parameter in the above BAPI gives a success message if
the mandates are correctly created for the customer.
Error handling can be done with the return exporting parameter.

If the mandate already exists then check if there is any change in the mandate
Mandate modification:
Use the BAPI BAPI_SEPA_MANDATE_CHANGE1 to change the already existing mandate.
BAPI_S_SEPA_MANDATE_CHANGE structure which is importing parameter to the above
mentioned BAPI has to be filled with the mandate information .This contains both the
Sender (Customer Details) and receiver details (Company code data ).

In case ofupdation is failed it can handled by return parameter of the BAPI

Display of Mandates :
The created mandates can be checked by FSEPA_M3 Give the Mandate number or Customer Number and check for the
Mandate information.

On Click on Enter the below Screen appears which displays all the information.

We can also check the Mandate information through Customer master display using transaction fd02,xd02,xd03,fd03.

Click on the Tab to check and create the mandate Details from Customer master
Display the List of Mandates:
Use the transaction FSEPA_M4 to display a list for customers for a particular company code.

Mention the company code in the below transaction and then execute all the mandates present for the company code will be
A list of mandates will be displayed as shown in the below screen shot.

The above lights depicts different status of the mandates below are the differnent status of mandates.
0 Entered
1 Active
2 To Be Confirmed
3 Locked
4 Canceled
5 Obsolete
6 Completed Completed
If we need to print a particular mandate information then select the Print mandate button on the top right corner of the list .

For this SAP has provided a smartform SEPA_MANDATE.This can be customized at central level and the thus the mandate can
be created and mandate information can be printed.

All the inforamtion related to the mandate is available in the table SEPA_MANDATE.
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