http://scn.sap.

com/docs/DOC-57923
XML as Global Payment file
created by hemachandra Srinvasa on Sep 8, 2014 4:38 PM, last modified by hemachandra Srinvasa on Sep 9,
2014 7:20 PM
Version 1
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Applies to
SAP ERP 5.0 / 6.0 with the focus of One XML format for global payments including SEPA

Summary
The purpose of this document is:
To provide possible country specific requirements (Europe and Americas) used at
Banks to extend the XML format
Development highlights to extend XML format as Global format
It is necessary the consultant is aware of all the basic settings of the Automatic payment
process. This document is only focused on the creation of complete structure of payment file
in XML format with the use of SAP standard template SEPA_CT.
Table of Contents
1
Introduction.
2

Benefits of using XML format as Global format

General Configuration.

4
XML SEPA Country specific Configuration.
4.1
Rules to determine a SEPA Payment
4.2
General Considerations: All EU SEPA countries.
4.2.1
Invoice reference in Payment file.
4.3
Country specific changes.
4.3.1
Spain.
4.3.2
Belgium.
4.3.3
France.
5
XML SEPA extension as Global format
5.1
General Considerations.
5.2
If Beneficiary Bank has IBAN
5.3
If Beneficiary has No IBAN User exit
5.4
DKK Payments in Denmark.
5.5
SEK Payments in Sweden.
5.6
NOK Payments in Norway.
5.7
GBP Payments in UK.
5.8
USD Payments in US.
6

Related Content

Disclaimer and Liability Notice.

1 Introduction
This document aims to understand and to use the XML format as Global format including
SEPA requirements / Transactions.
To start, SAPs standard template SEPA_CT for Credit Transfer is used. The basic
requirements and technicalities to generate the payment file takes into consideration the
requirement of EPC (European Payments Council)

The EPC rulebooks contain the business requirements and rules for the operation of the
SEPA. The implementation guidelines specify the SEPA core requirements that apply to the
UNIFI (ISO20022) XML
standards and cover mandatory bank-to-bank messages and optional recommended customerto-bank messages.
2 Benefits of using XML format as Global format
Converging to SEPA requirements, hence in line with the legal requirements
Less maintenance cost for the company
Adaptability and flexible to accommodate any future changes either by Financial
institutions or by business
Highly Secured
3 General Configuration
Standard SEPA_CT for credit transfer cannot be used unless changes are adopted as per the
bank and country specific requirements. It also depends on the Beneficiary Bank details,
Currency of payment and Beneficiary bank country.
A new format can be created as there are no formats available for a specific bank/ country.
This customization can be either done through modifying the standard function modules of an
existing PMW (Payment Medium Workbench) format or through developing via Data
Medium Exchange Engine (DMEE). (However this document does not deal with customizing
through DMEE).
4 XML SEPA Country specific Configuration

4.1 Rules to determine a SEPA Payment

Data Format
Ordering and beneficiary accounts have to be in IBAN format
BIC is required for both ordering and beneficiary parties
How recognize a payment elligible for SEPA
The following are few of the rules to make SEPA Credit Transfer:
The transactions have to be in Euro
The Debtor and Creditor must each hold an account with a Participant located within
the SEPA
The transfers have to be in the SEPA area.
The SEPA area comprises the following countries:
o EU : Euro-zone countries:
Austria, Belgium, Cyprus, Estonia, France, Finland, Germany, Greece, Ireland, Italy,
Luxemburg, Malta, Netherlands, Portugal, Slovakia, Slovenia
and Spain

o Non-EU : non-Euro-Zone countries Bulgaria, Croatia, Czech Republic,

Denmark, Great Britain, Hungary, Latvia, Lithuania, Monaco, Poland,
Romania and Sweden
4.2 General Considerations: All EU SEPA countries
SAP Standard template SEPA_CT to be copied as a base template with the necessary naming
convention.
Path: SPRO
IMG
Financial Accounting (New)
Accounts Receivable
and Accounts Payable Business Transactions
Outgoing Payments
Automatic Outgoing Payments
Payment Media Make Settings for
Payment Medium Formats from Payment Medium Workbench
The above path can also be accessed through the T.
Codes OBPM1 / OBPM2 / OBPM3 / OBPM4.

The steps in implementing PMW:

Create/ change payment medium formats
Assign variant to the format
Assign the format to payment method
Tr. Code: DMEE: To Copy (highlighted below) the Standard template Fig 1. This
will copy all the standard segments of XML format used in payment file.

The output structure of standard DMEE file is as shown below - Fig 2

Important Considerations
In the Payment file, a swift BIC code can be on 8 or 11 characters. i.e., for example
you can indicate in files as BNPAGB22 or BNPAGB22XXX. The four first characters have to
be Letters & the 5 - 6 characters is the ISO country code.
In the payment file, Charges always set-up to SLEV for SEPA payments. This
indicates to Bank that default charges set-up will be applied and is born by the debtor. Other
charges available for NON SEPA payments are : CRED, DEBT and SHAR.
For example, in Denmark, default charges are shared. You can force charges to what
you want by specifying one of the following values: SHAR or DEBT or CRED. This depends
on the Business agreement with Beneficiaries.
If the Payment is SEPA relevant, it is always mandatory to have the Payment
type information as follows:
<PmtTpInf>
<SvcLvl>
<Cd>SEPA</Cd>
</SvcLvl>
</PmtTpInf>
Batch booking option.
If batch booking= true. The bank statement will mention a global debit
of the instruction.
If batch booking= false. The bank statement will mention the details of
all transactions within the instruction.
Sample as follows:

4.2.1 Invoice reference in Payment file

Based on the Business requirements, either the payment can be executed by grouping the
invoices per vendor & currency or can be separated per invoice. Thus with the following
changes in SAP, invoice references can be transferred in the Payment file
4.2.1.1 Group of invoices paid per Vendor & Currency
If the invoice is grouped per Vendor & Currency with multiple invoices to pay, it is required
to capture all the invoice references in the payment file. This is required as this will serve as
the reference to the Beneficiary when the Account statement is received.
Tr. Code: OBPM2: As per standard format, Note to Payee lines in XML tag can take only 4
reference Atoms that are available (32 * 4 = 128 characters separated by /) under <Ustrd>
XML node. Hence for each vendor, four invoice numbers can only be accommodated in the
unstructured field which may not be sufficient for vendors in getting remittance information
details in their Account statement. It takes the details based on the above Note to payee text
format (Typ 1) line: &FPAYP-XBLNR&

Tr.Code: OBPM1

This change is called in the following node in the DMEE file:

4.2.1.2 Reference to be transferred without grouping

If grouping is not done, data is transferred with individual invoice references. Hence note to
payee length is not a challenge as it is enough to accommodate 18 character length as the
invoice reference.
4.3 Country specific changes
4.3.1 Spain
Non-resident vendors can be determined based on first three characters from their VAT Reg.
No. "ESN" or Tax number contains pattern N* in vendor master control segment.
Conditions can be maintained in Regulatory reporting XML tag where amount is greater than
50,000 Euros and Vendor Tax or VAT registration number contains pattern N* or ESN*.
Hence the following condition.

4.3.2 Belgium
Initiating party ID needs to be mentioned as constant KBO-BCE for Belgium

4.3.3 France
For French beneficiaries, there is no sort code (it does not exist & sort code is just for UK
domestic payments and on 6 digits Explained below). The details as below:

Sample as follows:
<FinInstnId>
<BIC>CCFRFRPPXXX</BIC>
</FinInstnId>

Regulatory Reporting code needs to be mentioned as constant 152 for France where
Payer is in France and Payee is outside France

Structure in the DMEE output file will appear as

Note: Null tags and empty tags are not allowed even on the address field => This involves
the rejection of the whole file. Such Tags have to be removed (or fill in) from the file.
5. XML SEPA extension as Global format
5.1 General Considerations
XML pain.001.001.02 for SEPA EURO payments and xml iso pain.001.001.03 for Non
EURO payments. Thus to facilitate the XML format as Global, it is required to have the
header as follows :
Sample output at Header
<?xml version="1.0" encoding="utf-8" ?>
- <Document xmlns="urn:iso:std:iso:20022:tech:xsd:pain.001.001.03"
xmlns:xsi="http://www.w3.org/2001 /XMLSchema-instance">f

To sum-up:
- with pain.001.001.03, it is possible to send SEPA and non SEPA payments
- with pain.001.001.02, you can only send SEPA payments
5.2 If Beneficiary Bank has IBAN
If IBAN is found in the Beneficiary bank account, the IBAN is printed via the structure in the
Payment file. If not, BBAN (Basic Bank Account Number) is generated via the user exit
Output is:

5.3 If Beneficiary has No IBAN User exit

Conditions are put in place to check IBAN, and if blank under segment: Othr, User Exit is
triggered. It is required to concatenate Bank Key and account number of the beneficiary under
segment Id.

Further, display the above generated numbers as the values are related to BBAN (Basic Bank
Account Number)
under the SchemeNm as shown:

Also, Beneficiaries without IBAN number outside Europe, but with BIC code and /
Beneficiary Bank country same as Postal address country structure should appear as:

If the Beneficiary Bank country same as Postal address country but without IBAN and
without BIC code, the structure should appear as:

Note: The tag <Ctry> for french regulatory reporting is mandatory to show in DMEE
file
It is required to note that, the country of the beneficiary bank is included in the swift BIC
code. In case the swift BIC code of the bank is not included, you will have to include the
name and address of the bank of the beneficiary. Hence, the structure should appear as
follows:

If the Beneficiary is in EURO zone and needs to be paid by multiple currencies, the challenge
is to segregate and group the EURO (SEPA Relevant) and NON-EURO payments.
SAP provides with the option to control the structure and group in relation to the currency.
Under the segment in Header node, we can control via the Key field as Transaction currency.
Screen shot below shows what needs to be maintained under DMEE tree.

5.4 DKK Payments in Denmark

Payment type Information section for Denmark should be updated with segment Prtry
(proprietary code) with DO as follows.
This is a proprietary code which is mentioned to indicate that it is a specific domestic
payment. It allows to identify that the payment is a FIK/GIRO payment.
Sample as follows:
<PmtTpInf>
<InstrPrty>NORM</InstrPrty>
<SvcLvl>
<Cd>NURG</Cd>
</SvcLvl> <LclInstrm>
<Prtry>DO</Prtry>
</LclInstrm>
</PmtTpInf>
5.5 SEK Payments in Sweden
For SEK Payments, OCR Reference text is mandatory. This reference should
appear in TAG remittance info unstructured . It is important to populate ONLY

with the OCR reference.

Sample as follows:
<RmtInf>
<Ustrd>/OCR/ reference text</Ustrd>
</RmtInf>
The Regulatory reporting for Sweden is applied for all cross-border
payment and when thebeneficiary is a non-resident and for amount over
150,000 SEK (or equivalent) and has to be structure as the following one.
You have to change as below
Sample as follows:
</CdtrAcct>
<RgltryRptg>
<Dtls>
<Cd>101</Cd> where 14 is the value of the reason code.
</Dtls>
</RgltryRptg>
<RmtInf>
And the country of residence of the beneficiary has to be populated in the address section fo
the beneficiary as below
<Cdtr>
<Nm>LABORATORIOS ABC QUIMICA,</Nm>
<PstlAdr>
<Ctry>CO</Ctry>
<AdrLine>Apdo. 11111</AdrLine>
<AdrLine>11123 BOGOTA Colombie</AdrLine>
</PstlAdr>
<CtryOfRes>CO</CtryOfRes>
</Cdtr>
5.6 NOK Payments in Norway
KID Number in Norway
Domestic standard KID number is maintained during invoice posting. This should be
populated during payment file creation to send the reference of the invoice against each
payment.
It is important to populate only with /KID/ + KID reference
Sample as follows:
<RmtInf>
<Ustrd>/KID/2023128155</Ustrd>
</RmtInf>
The Regulatory reporting for Norway is applied for all cross-border payment and has to
be structure as the following.
Sample as follows:

5.7 GBP Payments in UK

The Clearing code for UK domestic payments has to be populated. It concerns only domestic
payment and then it is to apply on the payments of the first instruction (PmtInf) only. You
have to change as below
Sample as follows:
<CdtrAgt>
<FinInstnId>
<BIC>YORKGB21568</BIC>
<ClrSysMmbId>
<ClrSysId>
<Cd>GBDSC</Cd>
</ClrSysId>
<MmbId>050568</MmbId>
</ClrSysMmbId>
</FinInstnId>
</CdtrAgt>
the value (050568) is a part of the IBAN (position from character 9 on 6
characters)

5.8 USD Payments in US

It is necessary to understand the types of USD payment based on the beneficiary country
and bank country.
Bene.

A.

Beneficiary
Country

Bank
country

Curren
cy

US

US

USD

SG
SG
SG

US
SG
CN

USD
USD
USD

Type of Transfer
ACH >> CCD or PPD
ACH >> CCD or PPD
NON ACH, can be USD Wires (499)
NON ACH, can be USD Wires (499)
** CCD: Corporate Payments,

PPD: Personal payments

Type of transfer should appear under tag Cd as follows:

For any USD local payments, service level code is NURG as follows
<PmtTpInf>
<ScvLvl>
<Cd>NURG</Cd>
</SvcLvl>

For any USD foreign payments, service level code is URGP as follows
Sample as follows:
<PmtInfId>1000457118</PmtInfId>
<PmtMtd>TRF</PmtMtd>
<BtchBookg>false</BtchBookg>
<NbOfTxs>3</NbOfTxs>
<CtrlSum>950.00</CtrlSum>
<PmtTpInf>
<ScvLvl>
<Cd>URGP</Cd>
</SvcLvl>
<ReqdExctnDt>2014-07-06</ReqdExctnDt>
Also, the formatting for the debtor account tag should be
Sample as follows:
<DbtrAcct>
<Id>
- <Othr>
-<Id>30XXXX84</Id>
-<SchmeNm>
<Cd>BBAN</Cd>
</SchmeNm>
</Othr>
</Id>
<Ccy>USD</Ccy>
</DbtrAcct>
6. Related Content

For more information for DMEE payment structure and configuration details, visit SAP
help:http://help.sap.com/saphelp_46c/helpdata/en/cb/d82f3885b6097ae100
00009b38f889/frameset.htm
7. Disclaimer and Liability Notice
This document may discuss sample coding or other information that does not include SAP
official interfaces and therefore is not supported by SAP. Changes made based on this
information are not supported and can be overwritten during an upgrade.
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2 Comments

Darshana Penta Jan 9, 2015 7:39 AM

A very deatiled and useful document. Thanks!!

Like (0)

Tanguy Muffat Jan 30, 2015 3:44 PM

Hello Srinvasa,
Tahnk you for this document highlighting all those points of consideration.
Something you do not mention - Do we have to maintain instruction key somehow ?