Electronic Banking System - EBS Explained

Progress Report: SEPA Migration Hornbach Baumarkt AG Heinz Hesse Hornbach Baumarkt AG August 01, 2013

DSAG SEPA Topic Day

©  2013 SAP AG. All rights reserved. 2 Customer DSAG Thementag SEPA

1.  Introduction to Hornbach Baumarkt AG 2.  Project Organization/Scope 3.  SEPA Credit Transfer Procedure 4.  SEPA Direct Debit Procedure

a)  Effects on Processes b)  Pre-Notification

5.  Reporting 6.  Electronic Bank Statement 7.  Additional Activities

Agenda

©  2013 SAP AG. All rights reserved. 3 Customer DSAG Thementag SEPA 02.08.13

Company Structure

(Headquarters in Neustadt a. d. Weinstrasse)

Development of first-class real estate for all operative units and third parties

25 branches in construction materials- and builders merchant business (SW Germany)

138 DIY- and Garden Centers 1.6 M. sq. m selling area in 9 countries

CEO Steffen Hornbach

Chairman Albrecht Hornbach

Feb.

201

3


138 Branches in 9 Countries

Feb.

201

3

Netherlands 9 branches

100,700 sq. m Luxemburg

1 branch 12,100 sq. m

Switzerland 6 branches

78,600 sq. m Austria

11 branches 140,300 sq. m

Sweden 4 branches 59,00 sq. m

Germany 92 branches

987,810 sq. m

Czech Republic 8 branches

110,000 sq. m Slovakia

2 branches 31,700 sq. m

Romania 5 branches

77,500 sq. m

(Fiscal year 12/13)


Number of Employees

Die Hornbach

Familie wächst!


SEPA – Vision and Definition Unified Euro Payment Area

An area where citizens, companies, and others will be able to make and receive payments in euro, within Europe, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location.

SEPA Definition

Source: European Payments Council Roadmap, 2004

“SEPA is the largest payments initiative ever undertaken within Europe and possibly the world.”

European Payments Council

European Payments Council


Project Organization

- SEPA Project -Project Team

A. HerbergIT

Client Server

H. HesseSubproject

ITSAP

NNMaster Data

T. HuckSubproject

Master Data

V. SchackertTreasury

Payment Transactions

M. Baum, F. HeckleSubprojectTreasury

NNCountry

Heads of AdministrationDE, AT, CH, NL,SE, CZ, SK, RO

LU

Contact PersonBank

H. HesseProject Management SEPA

IT

M. Baum, F. HeckleProject Management SEPA

Business Area


Project History/Project Plan

Project Start May 2009 �  Triggered by Treasury and IT departments

Project approved by CFO

Pre-Analysis and creation of project plan

Kick-Off SEPA Project August 2009

First talks with house banks

Background information on SEPA and presentation of SEPA project plan at international finance conference 2010


System Landscape

Analysis of Systems Affected by SEPA �  Central SAP Retail-, FICO-, and HCM system �  National eBanking systems �  Decentralized Unitrade retailing system of the Hornbach Baustoff Union affiliate �  Non-SAP payroll systems in some countries


Regulation (EU) No. 260/2012 on SEPA Migration

BIC Specified by Payer or Payee: Article 5

Source: German Federal Bank-> Presentation on SEPA Payment Transactions

Until Feb. 2014

Until Feb. 2016

From Feb. 2016

*Option for member states to continue to require specification of BIC

Inland Payments Cross-Border Payments

•  Specify BIC •  Specify IBAN



•  Specify IBAN •  Specify IBAN

•  Specify IBAN*


New Payment Methods and Instruments

SEPA Bank Transfer (European Credit Transfer, ECT, Valid from 28.1.2008): •  Transfer from a sold-to party (payer) to a beneficiary (payee) through the payer’s

own bank (sold-to party’s bank), a clearing- and external billing system, and the beneficiary’s own bank.

SEPA Direct Debit (European Direct Debit, EDD, Valid from 01.11.2009): •  The payment order is triggered by a creditor (payee) against a debtor

(payer) through the payer’s bank and handled through a clearing- and settlement system, as well as the payer’s bank.


Master Data: IBAN Generation

Automatic IBAN generation for master data (vendors, customers, personnel, health insurers, building and loan associations, and so on.)

Selection of program runs (download/upload):

1.  Check existing IBAN (checks and corrects IBANs present in SAP)

2.  Creditor master data (determines missing IBANs for creditor bank details)

3.  Additional master data such as debtors etc. if required

Manual postprocessing of error logs (IBANs cannot be generated)

Business partners written to only in this case!

Supported countries/IBAN procedure (see SAP Note 1397739) at present CH, DE, BE, AT, FI, NL

Change payment method by SAP mass change in creditor master data

Transaction IBANMD:

! Tip: import current bank directory before generating

IBAN!


•  Set up a new payment method for SEPA credit transfers in SAP

•  Check eBanking systems for SEPA suitability!!!

•  Possibly an update or even a change of eBanking system is required!!!

•  Test SEPA credit transfer with each house bank affected

Payment Transactions SEPA Credit Transfer

! Tip: Make a real payment, for example, transfer 1€ from

parent company to a subsidiary before going live.


XML Payment Format (SEPA-CT)


New Payment Methods and Instruments

SEPA Bank Transfer (European Credit Transfer, ECT, Valid from 28.1.2008): •  Transfer from a sold-to party (payer) to a beneficiary (payee) through the

payer’s own bank (sold-to party’s bank), a clearing- and external billing system, and the beneficiary’s own bank.

SEPA Direct Debit (European Direct Debit, EDD, Valid from 01.11.2009): •  The payment order is triggered by a creditor (payee) against a debtor

(payer) through the payer’s bank and handled through a clearing- and settlement system, as well as the payer’s bank.


Master Data: Direct Debit

Automatic IBAN generation of customer master data (see credit transfers)

Customizing of Mandate Management

Generation of SEPA mandates from existing automatic debit authorization (Trans. FI_APAR_SEPA_CONV)

Caution!!! Note conditions. For example, automatic debit authorization must exist!

Create SEPA mandates manually if required

Mandat Management:


•  Set up a new payment method for SEPA credit transfers in SAP

•  Check eBanking systems for SEPA suitability!!!

•  Test SEPA credit transfer with each house bank affected

Payment Transactions SEPA Direct Debit

! Tip: Make a real payment, for example, a direct debit

for an employee before going live.


XML Payment Format (SEPA-DD)


Advantages: •  Uniform payment formats for credit transfers and direct

debits in the EUR payment area •  Reduced maintenance effort for payment formats •  Lower credit transfer charges (cost advantage!) •  Quicker payment (credit transfers within a day) •  A central cross-company SEPA payment run is possible •  Standard payment formats SEPA_CT and SEPA_DD are

delivered by SAP (PMW)

SEPA Payment Formats


•  Customer wants to place a sales order •  Salesperson advises customer about payment options •  Customer opts for automatic debit •  Place order with direct debit

•  Print sales order •  Print automatic debit authorization

•  Customer signs automatic debit authorization •  Credit rating check by Financial Accounting •  If credit rating check successful:

•  Collect down payment if required (Treasury Dept.) •  Automatic collection of remaining amount (Treasury Dept.)

Business Process Sales Order with Direct Debit Today


•  Customer wants to place a sales order •  Salesperson advises customer about payment options •  Customer opts for automatic debit •  Place order with direct debit

•  Print sales order •  Print SEPA mandate

•  Customer signs SEPA mandate •  Create SEPA Mandate in SAP •  Credit rating check by Financial Accounting •  If credit rating check successful:

•  Collect down payment if required (Treasury Dept.) •  Automatic collection of remaining amount (Treasury Dept.)

Business Process Sales Order with SEPA Direct Debit


Pre-Notification

1. Industrial customers: •  Pre-notification on order form •  Advantages:

•  No separate printed form and dispatch required

•  Direct debit date and –amount are fixed

2. Credit card-/Proficard holders and other direct debit customers •  Pre-notification with payment run (in

planning with SAP) •  Pre-notification by separate form •  Dispatch by fax/e-mail/post


Z4 financial reporting data AWV must be checked and changed if required! 1.  Old report RFAWVZ40:

•  Can be reused if using a new payment method. See also SAP Note1115137.

2.  New report RFAWVZ40N/Trans. S_EB5_05000341 •  Z4 financial reporting data AWV on the basis of claims/liabilities •  Special approval is required from the German Federal Bank!

Request from the Service Center of the German Federal Bank in Mainz

•  For both reports, creation of a data extract with Z4 financial reporting data is possible

•  Download of financial reporting data with report RFAWVZ40F (Trans. F_0BF) => SAP Note1761007

•  csv file with Z4 financial reporting data is created �  File with Z4 financial reporting data can be uploaded directly in the "Allgemeines

Meldeportal Statistik” (AMS) of the German Federal Bank .

Reporting

! Tip: Perform a test with the German

Federal Bank beforehand .


Business transaction codes in the electronic bank statement processing enhanced with SEPA business transaction codes •  0XX Domestic payment transactions •  1XX SEPA payment transactions

Check and migration (if required) of bank statement format from MT940 to camt 053.001.02 •  Format not obligatory at present •  Before migration, consult with house bank whether bank statements can be

provided in this format

Electronic Bank Statement


•  Corresponding authorization roles enhanced with new SEPA transactions:

Appendix: Authorizations


Archiving Object CA_SEPA “Single Euro Payment Area (Mandate)” •  The archiving program checks whether the entry is still active, that is, neither

obsolete nor reversed, and archives all entries that were not changed since the last archiving key date.

•  Archived data is accessed through SAP AS (Archive Information System), the delivered info structure is SAP_SEPA_01 (no read program available yet)

Appendix: SAP Data Archiving


Business Object ‘SEPAMANDAT’ inherently uses the generic object services •  Manual creation of document types through OAC2 and OAC3

•  Signed mandates can be archived as scanned documents behind the SEPA mandate

Appendix: SAP Document Archiving


� Central SEPA Internet Start Page: http://service.sap.com/SEPA

Help for SEPA in the SAP Environment

Thank You

Heinz Hesse Hornbach Baumarkt AG IT Retail Finance Hornbachstr. 11, 76878 Bornheim +49 151 16110101 (Mobil) E-Mail: [email protected]

©  2012 SAP AG. All rights reserved. 30 Customer DSAG Thementag Financials

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Electronic Banking System - EBS Explained