White Paper

SEPA Credit Transfer V5 support in Oracle Payments for Oracle

Applications Release 12
TOC/Navigation Title
This white paper contains the following information.
1. Introduction
2. Credit transfer initiation messaging
Seeded XML Publisher Templates
Seeded Formats
Seeded Payment Process Profiles
Predefined Validations attached to SEPA Credit Transfer Payment Format

3. SEPA V5 updates
4. Mapping the attributes for SEPA messaging
Group Header
Payment Information
Credit transfer transaction information

5. Logical grouping of payments

6. Impact on Existing Users
7. Change Record
1. Introduction
A SEPA Credit Transfer (SCT) is a payment instrument for the execution of credit transfers in Euro
between customer payment accounts located in SEPA. The SEPA Credit Transfer is executed on behalf of
an Originator holding a payment account with an Originator Bank in favor of a Beneficiary holding a
payment account at a Beneficiary Bank.
The current SEPA credit transfer implementation in R12 is based on Version 3.3 of SEPA Credit Transfer
Scheme Customer-To-Bank Implementation Guidelines and SEPA Credit Transfer Scheme Rulebook
issued by European Payments Council (EPC). These guidelines define the rules to be applied to the UNIFI
(ISO20022) XML message standards for the implementation of the SEPA Credit Transfers in the customerto-bank space.
EPC has released Version 5 of these guidelines which are effective from 19 November 2011. There are
changes prescribed in the usage rules for various data elements in the new guidelines. In addition, some
new data elements are also prescribed to be supported as part of SEPA core payments. This document
describes the SEPA core implementation solution including the changes prescribed in V5 of SEPA
guidelines.

2.

Credit transfer initiation

The following enhancements are introduced as part of SEPA implementation:
The XML Template, Format and Payment Process Profiles are seeded for SEPA Credit Transfer Initiation.
New fields for Batch Booking and Grouping Mode are added in the Payment Process Profile window.
New validation sets for SCT message are added to the seeded SEPA payment format.

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 The Payment Instruction Creation Program (PICP) is enhanced to group the payments within the Payment
Instruction files based on fixed parameters. It includes stamping a logical group ID on each of the payment.
The BIC and IBAN validations are handled in the Oracle Cash Management application.
For Batch Booking, Manual and Automatic reconciliation logic is enhanced to include reconciliation
based on the payment groups described above.
Seeded XML Publisher Templates
Two new XML Publisher Templates
IBY_SEPA_CREDIT_INIT_TEMPLATE_STR_REM and IBY_SEPA_CREDIT_INIT_TEMPLATE
are seeded for SEPA Credit Transfer Initiation message with Structured and Unstructured remittances.
Seeded Formats
Two new Formats
IBY_SEPA_Credit_Init_Format_Strd and IBY_SEPA_Credit_Init_Format_UnStrd are seeded for SEPA
Credit Transfer Initiation containing Structured and Unstructured remittances.
Seeded Payment Process Profiles
Two new Payment Process Profiles
IBY_SEPA_MIXD_ST and IBY_SEPA_MIXD are seeded to support SEPA Credit Transfer Initiation
containing Structured and Unstructured remittances.
Predefined Validations attached to SEPA Credit Transfer Payment Format
For a payment to be sent to a bank in SEPA format there are some basic conditions and validations that
must be met. The validation architecture in Oracle Payments is used to ensure a payment included in the
SEPA format satisfies the conditions. This in turn ensures straight through processing (STP).
The following data is validated:
The transaction currency is in Euro. This has been ensured by including EUR as the only valid
currency for seeded Payment Process Profiles.
The Bank charge bearer is SLEV.
The Payer address fields are entered.
The IBAN of internal bank account and supplier bank account is present.
The BIC code for internal and the supplier bank branch is present.
The initiating party name and identification are present.

3. SEPA V5 updates
As per SEPA V5 guidelines, there are changes prescribed in the usage rules for some of the data elements.
These changes are mainly related to the xml tags to be populated in the output file. The following changes
are included as part of SEPA implementation:
Group Header:

Grouping - Grouping Mode is no more required to be populated. Therefore, the grouping mode is
removed in the payment output file.

Batch Booking The batch booking is populated in the Payment Information Block.

Initiating Party - The identification of the initiating party is passed under Other in Organisation
Identification.

Payment Information Block:

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Batch Booking The batch flag is populated in payment information block.

Number of Transactions The number of payment transactions included in the payment information block
is populated in the payment output file.

Control Sum The sum of payments included in each payment information block is populated.

Debtor and ultimate debtor: The identification of the debtor is mapped to BIC of the internal bank branch.
The identification of ultimate debtor party is passed under Other in Organisation Identification in the
payment output file.
Credit Transfer Transaction Information block:

Creditor and ultimate creditor: The identification of creditor and ultimate creditor is passed under Other in
Organisation Identification in the payment output file.

4. Mapping the Attributes for SEPA Messaging

SEPA Implementation Guidelines provide the guidance on usage of payment initiation UNIFI (ISO 20022)
XML standards (the pain.001.001.03 message) in initiating SEPA Credit Transfers. In the guidelines, the
data elements to be supported for SEPA core payments are shaded in yellow. The other data elements
marked in white are AOS specific elements. Only the data elements required in SEPA core payments are
supported in Oracle Payments.
This section covers the mapping of data elements forming part of SEPA core payments as prescribed SEPA
guidelines V5.
The SCT message structure consists of the following blocks:
Group Header
Payment Information Block
Credit Transfer Transaction Information Block

Group Header
This is the first block in the SCT message. The Group Header consists of the elements like: SCT Message
Identification, CreationDateTime, BatchBooking, NumberOfTransactions, Grouping, Initiating Party etc.
The mapping of the data elements is described below.
SCT Message Identification The Payment Instruction Reference Number is mapped to this
field. This is system generated.
Creation Date and Time This is the system generated date and time stamp.

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Number of Transactions This is the count of number of payments in the output file.
Control Sum The Absolute total of payment amounts is mapped to this data element.
Initiating Party The name and identification of Initiating Party are required as per SEPA
guidelines. The mapping for Name and Identification is described below:
- Name: The Legal entity is mapped to the Name.
- Identification: The identification in populated in the following order
- 1. Tax Registration Number if available, else
- 2. Legal Entity Registration Number.
- The identification is populated in <Othr> tag under the Organisation Identification.

Payment Information Block

This block consists of a set of parameters, which apply to the debit side of the payment transaction. These
include information like: Payment Information Identification, PaymentMethod, Payment Type Information,
Requested Execution Date, Debtor, Debtor Account, Debtor Agent, Bank Charges Bearer etc. The mapping
of the data elements is described below.
Payment Information Identification The Payment Group ID is mapped to this data element.
Payment Method TRF passed in message for the payment method Electronic.
Batch Booking Batch Booking value true or false based on the Batch Booking Flag in
Payment Process Profile.
Number of Transactions The number of payment transactions included in the payment
information block is populated in the payment output file.

Control Sum The sum of payments included in each payment information block is populated.

Payment Type information Contains the following sub elements:

Instruction Priority The SETTLEMENT_PRIORITY is mapped to this data element.
Service Level A hard coded value SEPA is passed for this data element. This is as per
the requirement in SEPA guidelines.

Category Purpose When the value for the Payment Function is PAYABLES_DISB the
value SUPP is passed for this data element.

Requested Execution Date The Payment Date is mapped to this data element.
Debtor The name, address and identification of debtor are required elements for SEPA core
payments. . The mapping for name, address and identification is described below:
- Name: The Legal entity is mapped to the Name.
- Address: The Legal entity address is mapped to the Address.
- Identification: The BIC of internal bank branch is populated in identification.
Debtor Account The Identification and Currency of the debtor account is required as per SEPA
guidelines. The mapping for these elements is:
- Identification: IBAN of the internal bank account is passed for this element.
- Currency: Currency of the internal bank account is passed for this element.
Debtor Agent The BIC of the bank branch of internal bank account is mapped to this element.
Ultimate Debtor The name and identification of ultimate debtor are required as per SEPA
guidelines.
- Name: This is mapped to the Invoice Legal Entity if it is same for all the invoices selected
for payment else a hard coded value Multiple Ultimate Debtor is passed.
- Identification: If the Invoice legal entity is the same for all the invoices selected for payment,
then Tax registration number is populated in the <Othr> tag under the Organisation
Identification. If it is not present, the Legal entity registration number is populated in the
<Othr> tag under the Organisation Identification.
If the Invoice legal entity is different on the invoices selected for payment, then a hard coded
value Multiple Ultimate Debtor is passed in the <Othr> tag under the Organisation
Identification.

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Charges Bearer A hard coded value SLEV is passed for this data element. This is as per the
requirement in SEPA guidelines.

Credit Transfer Transaction Information Block

This block consists of a set of elements providing information specific to the individual payments
included in the SCT message. This consists of the elements like Payment Identification, Amount,
Instructed Amount, Creditor Agent, Creditor Agent Account, Creditor, Creditor Account, Payment
Purpose and Remittance Information etc. The mapping of the data elements is described below.

Payment Identification The Instruction Identification and End to End identification are
required as part of SEPA core payments.
The Payment reference number is mapped to both instruction identification and end to end
identification.
Payment Type Information This data element is populated in payment information block as
described in the usage rules of SEPA guidelines.
Instructed Amount The Payment Amount and Payment Currency are mapped to this data
element.
Charge Bearer This data element is populated in payment information block as described in
the usage rules of SEPA guidelines.
Ultimate Debtor - This data element is populated in payment information block as described
in the usage rules of SEPA guidelines.
Creditor Agent The BIC of the Remit to Bank Account is mapped to this data element.
Creditor The Name, Address and Identification are required for creditor. The mapping for
these elements is:
- Name: This is mapped to Supplier Name.
- Address: This is mapped to the address of Supplier Site, Address line 1 and 2 are
supported per the requirement of SEPA guidelines.
Identification: The identification of supplier is provided in the following order as given
below:
1. If Tax Registration Number is available it is populated in the tag <Othr> under the
Organisation Identification
2. If the Tax Registration Number is not present, the identification is populated in
<Othr> under the Organisation Identification in the following order:
o Legal entity registration number or
o Supplier number or
o Party number or
o First party reference
Ultimate Creditor The ultimate creditor is mapped to the Remit to Supplier. If Remit to
Supplier information is not available, then it is mapped to the Supplier. The mapping is
same as for creditor.
Creditor account The IBAN of the Remit to Bank Account is mapped to this element.
Payment purpose The Payment Reason is mapped to this element.
Remittance information The remittance information can be either Structured Remittance or
Unstructured Remittance. SEPA guidelines prescribe a 140 characters limit for the
remittance information including the tag size.
o Structured remittance - The Creditor reference and Creditor reference type are required as
data elements in SEPA core payments.
- Creditor Reference Type:
Code: SCOR (Structured Communication Reference) is the value prescribed to
be passed for this data element. Therefore a hard coded value SCOR is passed
for this field.
- Creditor Reference: The Invoice Number is passed for Creditor Reference.

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Unstructured remittance The following elements are supported in the Unstructured:

Invoice Number
Invoice Date
Invoice Amount
Remitted amount
Comma (,) is used as the separator for the elements and semicolon (;) is used as
separator for invoices.
The remittance information must contain 140 characters as per SEPA guidelines. The
system does not contain any restriction on the number of characters. The remittance
information is passed in the message without any formatting. If the banks decide to
pass the remittance information fully, then they can pass it to the customers. Else the
remittance information must be truncated by banks to 140 characters.

Logical Grouping of Payments

SEPA format supports grouping of payments within a Payment Instruction. The payments within a
Payment Instruction are divided into logical groups. The attributes common to the group of payments
are stored at the group level. The payment information block in the SEPA message structure contains
the attributes of logical grouping.
For example, if a payment instruction contains 10 payments where the logical grouping attributes for 4
payments are different from the other 6 payments, then the instruction will contain 2 payment
information blocks. The first payment information block will contain 4 payments and the second
payment information block will contain 6 payments.
The SEPA payments are grouped using the following attributes of the payment information block:
Payment Method
Requested Execution Date (Payment Date)
Debtor (First party Legal Entity)
Organization (Operating Unit)
Debtor account (IBAN of the Internal Bank Account)
Currency (Payment Currency)
Instruction Priority (Settlement Priority, new)
Category Purpose (Value SUPP is passed, new)
These elements are included as attributes for logical grouping of payments.

Impact on Existing Users

The Grouping mode is no more passed in the Payment output file. However the existing users must
select Mixed grouping mode in the payment process profiles for logical grouping of payments.
With the changes in the SEPA guidelines, the Structured Remittance information includes only the
information of the Creditor Reference. The existing users can send only the Creditor Reference
information in the structured remittance information block. If the users want to send the invoice
number, invoice amount or other details, they need to use unstructured remittance.

Change Record

Date

Description of Change

November 14, 2011

Created document.

SEPA Credit Transfer V5 for Oracle Applications Release 12 |

Oracle Corporation
Author and Date
Patruni Suresh, November 2011
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Copyright 2011, 2012 Oracle. All rights reserved.
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