SEPA Implementation (HSBC) August 2014

Preliminary Setups

Apply latest patch set according to Doc ID 1590685.1

Step 1 – Modify SEPA Format Template for HSBC ABC ID

NB this step is required for SEPA payments through HSBC. For other banks, it may be possible to use
the standard Oracle SEPA format. The standard format uses the Tax Payer ID that is setup against the
Legal Entity.

Responsibility: XML Publisher Administrator

Home>Templates

Query the Payment Format Template SEPA Credit Transfer Initiation Format. Select Duplicate and
then rename as:

Code: IBY_SEPA_CREDIT_INIT_TEMPLATE_HSBC

Name: SEPA Credit Transfer Initiation Template HSBC

Apply

Once the payment format template has been opened, all setup related with that format payment is
displayed. Go to the template files and download the file name IBY_SEPA.xsl and save it in your
client PC.

The file is modified; the ABC ID must be hard-coded (ABC98287001) within the InitigPty tags and the
file is saved as IBY_SEPA_HSBC.xsl (need XML Copy Editor installed to make the changes to the XML
file).

In XML Publisher Administrators Responsibility open the template SEPA Credit Transfer Initiation
Template HSBC. Click the Update button

 File: Use the Browse button to upload the template layout file IBY_SEPA_HSBC.xsl

 Language: English

Apply changes.

Step 2 – Reset Sequences on SEPA validations

The sequences on the SEPA validations will need to be reset by IT (Mike Parr) before they can be
assigned to the new HSBC Payment Format setup in Step 4 below. Refer to the following on Oracle
Support (Metalink):

Unable To Create Validations On Formats Get "IBY_VAL_ASSIGNMENTS_VAID_U1" violation (Doc ID

1474476.1)
Step 3 – Associate SEPA HSBC Template to HSBC Payment Format

Responsibility: CEL AP Super User

Navigator>Setup>Payments>Payment Administrator

Select Go To Task for Formats

Select Type: Disbursement Payment Instruction, click Create

Code: IBY_SEPA_HSBC_CREDIT_INIT_FORMAT

Name: SEPA HSBC Credit Transfer Initiation Format

Data Extract: Oracle Payments Funds Disbursement Payment Instruction Extract, Version 1.0

XML Publisher Template: SEPA Credit Transfer Initiation Template HSBC

Author:

Pre-Defined Validations (click Add Row for each one):

 SEPA Payer Legal Entity Identification

 SEPA Payer IBAN Validation
 SEPA Payer Address Validation
 SEPA Payee IBAN Validation
 SEPA Payee Bank Branch BIC
 SEPA Invoice Legal Entity Identification
 SEPA Bank Charge Bearer Validation

Apply changes

Step 4 – Attach SEPA Format to Payables Documents

Attach SEPA Credit Transfer Initiation Format HSBC (with or without remittance, i.e. same as above)
to Payables Documents

Navigator>Setup>Payment>Bank Accounts

Search for Account CEL HSBC UK EUR. Select account and click Manage Payment Documents.

Select Update for UK SEPA Payments 2942 and change the Format to SEPA HSBC Credit Transfer
Initiation Format.

Click Apply.

Step 5 – Create SEPA HSBC MIXED PPP (based on seeded SEPA MIXED PPP)

Navigator>Setup>Payments>Payment Administrator

Select Go To Task for Payment Process Profiles. Select Create.

Code: IBY_SEPA_HSBC_MIXD

Name: SEPA HSBC Mixed

Description: SEPA HSBC Payment Process Profile for mixed mode

Payment Instruction Format: SEPA HSBC Credit Transfer Initiation Format

Processing Type: Electronic

Electronic Processing Channel: Oracle Payments

Mark Payment as Complete: When the Payment Instruction is Formatted

Allow Manual Setting of Payment Completion: No

Payment Completion Point: When the Payment Instruction is Formatted

Grouping Mode: Mixed

Usage Rules

Payment Methods: All

First Party Organizations: All

Internal Bank Accounts: All

Currency Code: EUR

Payment System (not required)

Payment Creation

Group Documents By: All set to No

Limit By: Payment Detail Formula:

CALLING_APP_DOC_REF_NUMBER||','||DOCUMENT_DATE||','||DOCUMENT_AMOUNT||','||PAY
MENT_AMOUNT||';'

Payment Instruction Creation

Payment Instruction Format

Payment Instruction Format: SEPA HSBC Credit Transfer Initiation Format

Reporting (not required)

Additional Information (not required)

Step 6 – Modify Template

Modify template to select correct Payment Document and SEPA HSBC MIXED PPP

Navigator>Payments>Entry>Payments Manager

Click on Templates tab. Search for Template Name CEL HSBC UK EUR

Click Update

Click Payment Attributes tab and select UK SEPA Payments 2942 in Payment Document field and
SEPA HSBC Mixed as Payment Process Profile. Click Apply.

Step 7 – Verify Supplier Banks

Verify IBAN and BIC codes on EUR supplier bank accounts. Using a generic bank will not work for
SEPA payments, see attached excel extract of all suppliers that will need bank account details
updated.

Responsibility: CEL Vendor Management

Navigator>Supplier>Entry

Search for supplier. Select Bank Details from left-hand menu bar. Select Site and choose the correct
Site for the OU. Proceed to enter or update the bank account assigned.

NB if this step is not done, the Payment Process Request will identify any supplier payments that do
not have an IBAN / BIC defined and they will be rejected. It will not be possible to process any EUR
supplier payments through either the Payment Process Request or the Quick Payment until the
individual supplier bank accounts (with BIC and IBAN) have been assigned and the invoices assigned
to the correct bank accounts. NB the invoice assignment can be done automatically by end-dating
any incorrect bank account and selecting to ‘Update the Documents Payable’ during the new bank
account setup.

Create the new bank account (Standard Bank in example below) with BIC, IBAN and check Allow
International Payments flag.

Apply an End Date to the CEL Bank Account

Select Yes (above), this will automatically assign the new bank account to the invoices. Save
changes.
User Guide – SEPA Payments

Submit Payment Process Request

Navigator>Payments>Entry>Payments Manager

Enter Payment Process Request Name

Use template: CEL HSBC UK EUR

Click Submit. Process request is generated. Return to the Home screen to monitor progress. Click
Refresh Status on the Dashboard. When the request has finished Processing, the Needs Action count
should increase by 1, click on the number (hyperlink)

Click on the Payment Process Request, review and modify (if appropriate) the invoice selection. If All
OK, click Submit

Return to the Home screen and as soon as the request completes. NB if none of the Suppliers have
BIC and IBAN assigned, you will see the following in the Payment Process Requests tab:

If this is the case, click on the Payment Process Request Name and then review each of the Rejected
payments to confirm that missing BIC and IBAN is the problem. Supplier bank details will need to be
corrected.

Otherwise, click on the number (hyperlink) in the Needs Action section of the Dashboard.
Check any Rejected and Removed Items. If any suppliers have been setup with the generic bank
account or the supplier bank account is missing BIC or IBAN details, they will be rejected.

Return to the Payment Process Request and then Review Proposed Payments.

Actions Run Payment Process, click Go.

Return to the Home screen and as soon as the request completes, click on the number (hyperlink) in
the Complete section of the Dashboard.

Payment Process Request status should be Confirmed Payment.

Select Monitor Requests from the Home screen

Format Payment Instructions with Text Output should have completed without error and Output file
created. Click on the Output and the save.

The file is then ready to be loaded up through HSBC.Net

Appendix

Error: Payees must have IBAN and BIC

The above error occurs when there is a supplier setup without IBAN and BIC on the supplier bank
account. This is standard validation that is Active on the SEPA payment format(s):
NB this validation can also be extended to the Payment Method. The Invoice Validation process
would then put the invoice on hold if the supplier bank is missing the IBAN and BIC. However this
would require a new Payment Method to be defined (such as EUR SEPA) and applying this Payment
Method to all EUR suppliers. This functionality is not being rolled out at this time.

Format in Oracle – SEPA HSBC Credit Transfer Initiation Template