Key Things You Need to Know about SEPA

  • by Juergen Weiss, SEPA-Now Consulting
  • January 20, 2014
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.
Learning Objectives

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
Key Concept
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. SEPA 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.

Juergen Weiss

Juergen Weiss works in the functional area of SAP Financial Supply Chain Management. As part of SAP’s product management team, he was globally responsible for the Financial Supply Chain Management applications, including Electronic Bill Presentment and Payment, Dispute Management, Collections Management, Credit Management, Treasury and Risk Management, Bank Relationship Management, and In-House Cash as well as Accounts Payable and Receivable.

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Comments

1/23/2014 6:53:24 AM
SInu Varghese

HI Jurgen,
Many thanks for the article. it seems the transition period to postpone SEPA for 6 months has been cancelled and Feb 1st,2014 still stands.
please check article:
http://www.partnerpowerinternational.com/blog/postponing-the-sepa-deadline-was-rejected-by-the-eurosystem-february-1st-stands/

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