By Bob Croce, SAP Experts
By 2014, it’s likely that the Single Euro Payments Area (SEPA) will be mandatory for all companies operating in Europe that are sending and receiving Euro payments, reports Juergen Weiss of SEPA-now Consulting in his latest article in Financials Expert.
In the article, titled “Ready your SAP system for the new payment methods within the Single Euro Payments Area,” Juergen writes about how SEPA is the result of actions taken by the banking industry in 2002, when the industry created the European Payments Council (EPC) to define the standards, frameworks, and rules for Euro payments.
SEPA enables citizens, companies, and other stakeholders to make and receive payments in Euros within Europe, whether between or within national boundaries, under the same basic conditions, rights, and obligations, regardless of their location, Juergen writes . The political driver behind SEPA is the European Commission, along with the European Central Bank.
The new regulation calls for a mandatory migration date for the currently existing domestic payment methods within the 32 SEPA member states by 2014 at the latest. This forces all companies that are doing business with European partners and that are sending or collecting payments in Euros to comply with the new payment standards. Payment formats such as checks or bills of exchange are not affected by the new standards because they are paper based.
SAP implemented the new SEPA credit transfer with the Payment Medium W
orkbench (PMW) and the Data Medium Exchange Engine (DMEE). In contrast to the classic payment medium programs, the PMW allows you to maintain, configure, and enhance your payment formats more easily, Juergen writes in Financials Expert. In addition, the PMW separates generic functions from format-specific mapping and allows you to apply legal changes to payment medium formats faster. The component also reduces the degree of complexity, because you only need to use one tool and don’t have to work with many different payment medium programs that are often hard to maintain and extend.
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