SEPA Electronic Vendor Payments

In the Vendor Payments in the Cash Management application, you can process Singe Euro Payments Area (SEPA) electronic payments to pay vendors for AP vouchers.

SEPA electronic payments are also referred to as SEPA EFTs (electronic funds transfers). SEPA files use the Single Euro Payments Area xml file format that is commonly used in European countries. This format produces an xml file that contains the SEPA service level code. You can also use the SEPA format for other service level codes, such as SDVA, URGP, or NURG. To use the SEPA format for other service level codes, after the xml file is generated in the export-to-text process in Vendor Payments, you can edit the XML document and replace the SEPA service code level with another code.

When you process SEPA vendor payments, you download a SEPA-formatted .xml file that you send to your bank. The bank uses the payment information in the file to make the direct deposit payments to your vendors' bank accounts.

Prerequisites

Before you can process a SEPA EFT vendor payment run in Cash Management > Vendor Payments, you need to complete the following actions.

Settings

You must complete settings for banks, vendors, the vendor payment template, and automatic payment numbering.

For more information, see: Setting Up Vendor Payments for SEPA EFTs.

AP Voucher Entry

When you enter AP vouchers in Transaction Center > Transaction Entry > AP Vouchers, if you want a voucher to be paid by a SEPA payment, you must select a bank for the voucher that is set up to make SEPA payments, and the vendor for the voucher must be set up to receive SEPA payments.

Direct Deposit Test

You must also complete a direct deposit test for vendors who will receive SEPA payments. See Perform Initial Test Direct Deposit.