The integration of SEPA_CT and SEPA_DD into CGI_XML_CT/CGI_XML_DD
SEPA (Single Euro Payments Area) is one of the well-used Payment Formats across European countries and regions in Euro currency. You may have noticed that Payment Medium Formats for SEPA_CT (Credit Transfer) and SEPA_DD (Direct Debit) have changed into country-specific CGI_XML_CT and CGI_XML_DD formats. Why this change was needed, and which benefits can bring it to you?
First, from ERP 6.0 there is a redesign of Payment Formats for all version that we supported. Additionally, it is needed to understand the process of Life cycle process of Payment Medium Formats. Since ERP 6.0 EHP7 release SAP-delivered formats are keeping up-to-date based on the market changed and specific requirements. Secondly, new functionality in DMEEX transaction provides hierarchical trees derived from the country-specific requirements.
Regarding integration, it is important to clarify a few points:
- SEPA_CT is fully integrated with all country-specific into CGI_XML_CT (Credit Transfer pain.001.001.03) e.g. German SEPA_CT -> DE_CGI_XML_CT
- SEPA_DD is fully integrated with all country-specific into CGI_XML_DD (Direct Debit pain.008.001.02) e.g. German SEPA_DD -> DE_CGI_XML_DD
- CGI (Common Global Implementation initiative) has acceptance of ISO 20022 XML
The benefits of the integration are:
- CGI has broader usage than SEPA
- CGI_XML_CT and CGI_XML_DD allow International Payment in a currency other than Euro or International Payments to third countries
- Simplification of maintenance – the same Payment Medium Formats for SEPA and non-SEPA payments
In case you would like to know more details follow these SAP Notes:
2795667 – ISO20022 adoption – global harmonisation & regulation (SEPA in Europe)
2668719 – Attributes for the life cycle of Payment Medium Formats.
2819590 – Structured remittance information is not being populated in the XML output of a SAP delivered CGI format
List of all Payment Medium Formats for SAP S/4HANA Cloud is on this link.
List of all Payment Medium Formats for SAP S/4HANA is on this link.
Mass Synchronization in DMEEX SAP blog
Payment Medium Formats in SAP blogs
I have worked on this CGI_XML_CT/DD solution with two end-users now, including SEPA payments.
These customers have gained the benefit of quicker project rollouts, as there is less need to create multiple PMW & DMEE objects. We have been able to use a single CGI_XML_CT/DD for all our ISO20022 CT/DD requirements successfully. Specific bank requirements, where not met in the SAP standard country BADIs, can be achieved through the customer-implemented BADIs.
The restriction of payment file changes to bank country through the BADI filters is helpful in reducing regression impact. This has been a difficult issue where clients have shared DMEE objects previously. Whilst this works well, It could be interesting to increase the flexibility of the BADI filters on customer BADIs, so that regression could be limited by house bank.
One issue has been that payment file changes are requiring ABAP, rather than configuration of DMEE object. This requires some re-skilling amongst technical specialists involved in payment file output. On the other hand, this has ensured that changes to the payment output are made in a more considered way.
There are some minor cases of remaining nodes in the CGI_XML_CT DMEE that are not referencing the BADI solution, hopefully these will be rectified via OSS soon!
All in all, this solution helps to facilitate global ISO20022 implementations. It is better suited for ongoing support, and is clearer to work through upgrades.
Ahoj Tereza, I would like to ask a question regarding the use of the payment formats CGI_XML_CT / CGI_XML_DD. What in you experience would be the better approach:
Both approaches have its benefits:
There are also cases when companies create (used to create) separate country-specific payment formats to isolate the changes (which is irrelevant as we can use the country-specific BADI implementations).
In my opinion the direct use of standard CGI_XML_CT / CGI_XML_DD formats is better approach, teamed up with strong UAT / regression testing after every upgrade.
Thank you for your opinion.
Z* until standard changes with an upgrade.