BACS payments are domestic, non-urgent payments (ACH payments) in the United Kingdom of Great Britain and Northern Ireland. Processable amounts are limited by the credit limit set by the BACS clearing system only. Traditionally, the BACS format is using the text flat file uploaded to the bank.
In 2014, SEPA, which stands for Single Euro Payments Area, is an initiative in the European Union to simplify the bank transfers. While the rollout for non-Euro member states like the United Kingdom is expected to transition by early Q4 of 2016. Banks located in the United Kingdom is already moving towards this direction. The document describes some tips in using the SEPA Credit Transfer format for UK-BACS in SAP.
Tip #1: It is best to reference SAP supplied format into a Z-format for modification.
To create a DMEE format using a reference format, enter the following information
- Transaction Code: DMEE
- Tree Type: PAYM
- Reference format tree: SEPA_CT
1- Create a new format tree: ZSEPA_CT
2- Click on the icon copy . In the source tree, it is possible to define the source structure and the target structure
3- Click on Copy to proceed with the copy of reference DMEE tree. A transport pop-up screen will show to save the Workbench Transport if you are in a development client.
Copying from SAP template as reference has some advantages namely:
- Inexpensive. It allows you to leverage on the pre-set structure/format in order to save time vis-a-vis developing the DMEE tree from scratch
- Ready to go. You can start modifying your DMEE tree more or less instantly. It reduces the complexity in development.
Tip #2: Amend the overall structure to correspond to the output requirement of the bank
In order to visualize DMEE format tree, it is best to look at the screen with two sides. On the left hand side is the XML structure which can be changed according to the bank’s file requirement format.
On the right hand side represent the field mapping for each node. It can be changed according to the bank’s requirements. It represents the different mapping procedure which is flexible to cater for the bank’s requirement. If the standard mapping procedure, there is always an option of writing a user exit.
It is easy to check if the overall structure correspond to the output requirement of the bank. Just compare the
Tip #3: Managing Sort Codes of Beneficiary account using Vendor Bank Master Data
The beneficiary account is addressed via the sort code of the beneficiary’s bank and the (domestic) account number. This includes the bank’s sort code and the bank account number of the beneficiary.
To manage this data, it is recommended to organize the coding structure of vendor bank master for UK vendors as follows:
|Country||GB (Great Britain) – Country Key|
|Bank Key||6-digit Bank Sort Code|
|Bank Account||8-digit Bank Account number|
|Account Holder Name||Beneficiary Account Name|
IBAN and SWIFT code is generally not required for BACS payment. However, it will be useful for future Euro payments and both can be stored in the vendor bank master.
Below is an example. (Data is for sample only to illustrate the mapping structure)
Maintaining the integrity in the vendor bank master data reduces any possible issues in processing with bank. There are a few sites recommended for the checking the validity of sort code:
UK Payment Council’s sort code checker:
UK Payment Council’s IBAN checker:
Tip #4: Including a control sum checks on the number of transactions
By default, the SAP’s template SEPA_CT format includes a control sum checks. Depending on the bank’s requirement, changes can be made to include a control sum checks into the DMEE file.
The following is a simple explanation to understand the use of reference IDs and the aggregation as a counter in the DMEE format tree.
In the sample file, <NbOfTxs> 2 </NbOfTxs> is a control sum of the number of transactions expected to be process in the <PmtInf> file. It counts the number of <CdtTrfTxInf>.
In the NbOfTxs node, aggregation is used as the mapping procedure
In the aggregation tab, it uses the reference ID “TX” as a point of aggregation and aggregation rule to use is 2. Below are the standard aggregation types and its descriptions.
Summation of Values
Number of Occurrences
Summation of Absolute Values
This reference ID is linked to the node <CdtTrfTxInf>
Tip #5: Ensure that the XML encoding with the correct format
The encoding specification in the file does not match the code page entered.
The issue as described in the SAP note states, “The XML file contains the specification encoding=”UTF-16″, although the code page 4410 has a UTF-8 in transaction”
Pls. refer to the SAP notes below for more information:
SAP Note 1954679
SAP Note 1841190