Prodware Blog: How can Microsoft Dynamics NAV help with SEPA Payments?
Is your ERP software solution up-to-date with the latest changes in payment transaction processing?
One of the most recent changes is that as of February this year, companies making cross-border euro payments will need to use the SEPA Payment Scheme. There are three payment instruments: SEPA Credit Transfer, SEPA Direct Debit and SEPA Cards Framework. Microsoft have taken this into consideration and included new enhanced Cash Management functionality in their Microsoft Dynamics NAV 2013 R2 solution.
What is SEPA?
SEPA stands for Single Euro Payment Area, offering the goal of forming a single market for payment transactions within the European Economic Area. For those businesses who have banking relationships in Europe, this is a significant change that they need to be aware of.
Once SEPA is fully implemented, all electronic payments which are in Euro and within the SEPA area, will be regarded as domestic payments. The aim of SEPA is to reduce the overall cost of moving capital around the Eurozone, which is estimated at up to 3% of European GDP. Businesses will also benefit from a set of standards for electronic payments. These set of rules and guides will help your Euro payments be handled more smoothly, ensuring companies in different countries are working to the same standard.
What does this mean for Microsoft Dynamics NAV 2013 R2?
Keeping up with the changes in the business world, Microsoft have ensured their ERP software is able to meet the demands of the market. Their Dynamics NAV 2013 R2 solution, offers enhanced Cash Management functionality which includes SEPA support. This will mean that fragmented national payment systems can be simplified according to a single set of standards. When SEPA is fully implemented in businesses, all electronic payments, regardless if they are in a different country to the company itself, will be considered domestic payments. With the Dynamics ERP solutions, your business can easily make payments and bank transfers in Euros to anyone within the area, through your existing bank account.
Dynamics NAV’s Cash Management fully incorporates functionality for SEPA Credit Transfers, SEPA Direct Debits and SEPA Cards Framework using the ISO 20022 XML message structure.
This change will affect millions of European citizens and companies. Yet it will create a unity across different countries, as both businesses and citizens will be able to make and receive payments in euros, whether this is within or across national borders.
Find out more by reading Microsoft’s White paper on Microsoft Dynamics NAV and SEPA Credit Transfers and Direct Debits.