Become familiar with the current implementation status of the Single Euro Payments Area (SEPA) and the reasons for the suggested postponement of the regulation. Understand the main consequences of SEPA for companies doing business in Europe. Get an overview of the most important SEPA functions delivered within the SAP Financials system. Learn critical elements and best practices of a SEPA implementation project.
By reading this article you will learn:
- The most current status of SEPA and the level of adoption in the eurozone
- The scope of SEPA and its various impact on corporations
- Best practices for preparing a SEPA implementation project
The Single Euro Payments Area (SEPA)
enables citizens, companies, and other stakeholders to make and receive payments in euros within Europe, whether across or within national boundaries, under the same basic conditions, rights, and obligations, regardless of their location. The political drivers behind SEPA are the European Commission
and the European Central Bank
is one of the largest projects in the history of pan-European monetary transactions. It is another major step toward a common financial market following the introduction of the euro in 1999.
The implementation of the Single Euro Payments Area (SEPA) is around the corner. The end date in the eurozone for the migration of domestic as well as intra-European credit transfers and direct debits in euros toward SEPA credit transfers (SCT) and SEPA direct debits (SDD) was set to be February 1, 2014.
Three weeks before this deadline, however, the European Commission proposed to amend the SEPA Regulation (EU) 260/2012 with a grandfathering clause that would allow banks and other payment service providers “to continue also after 1 February 2014, for a limited period of time of 6 months, the processing of non-compliant payments through their legacy payments schemes alongside SCT and SDD.” SEPA requires all corporations that are doing business in Europe to comply with new payment standards, to change master data, and to reconsider their business processes in financial accounting, cash, and treasury management. The proposal must be approved by the European Parliament and the Council of the European Union.