Critical deadline for euro transfers and direct debit

SEPA End Date deadline 31st October: If your organization is conducting business in non-euro area countries, be aware that all national euro credit transfers and Direct Debit Schemes in these countries must be SEPA compliant by 31st October 2016.

For you as a customer, that means that your current banking integration to your Microsoft Dynamics AX ERP, and the usual file transfer mechanism may need to be updated.

The impacted countries include: United Kingdom, Denmark, Norway, Sweden, Poland, Latvia, Estonia, and Lithuania.

The compliance requirement, also known as “SEPA End-Date”, requires banks and customers within the non-euro zone countries to discontinue and replace all local banking platforms and integrations to SEPA compliant alternatives supporting the ISO20022 XML format scheme.


As part of EU and the European Payment Council’s effort to align and harmonize the payment schemes across Europe dating back to year 2002, the SEPA End-Date regulation was set in motion in 2012 to align euro credit transfers and euro direct debit schemes. This allows making cross-border payments in euro as efficiently as domestic transactions.

The SEPA (Single European Payments Area) consists of 27 EU member states, 3 additional countries being part of the European Economic Aare, plus Switzerland, Monaco, Mayotte, St Pierre and Miquelon.

  • The first phase of SEPA End Date impacted only Eurozone countries, which had a deadline of 1st August 2014.
  • The current phase impacting the non-euro zone countries listed above, require these to comply by 31st October 2016.

Do you need to worry?

If you are not sure whether your banking integrations need to be updated to the new ISO20022 XML formats, then you should consult with your bank, internal IT/Finance, and your banking integration consultants.

The SEPA migration deadline means that all multinational companies should react, this includes multinational corporations in the US, Asia, Middle East, Latin America running operations within the European Union.

Corporations that fail to comply will face several risks. Most important, the legacy systems they use today for euro A/P, A/R, Tax and Payroll transactions will no longer work. Because banks will be unable to process non-compliant payments via the SEPA channel, corporations could miss payment dates. As a result, e.g. US corporations may be forced to make payments via wires at a premium cost or pay a third party service provider to make their transactions SEPA compliant. This semi-manual process could in turn expose corporations to greater risk of payment errors (J.P. Morgan, Treasury Services).

The new ISO20022 standard ensures you increased standardization, regulatory compliance, enhanced security, and improved integration possibilities to your Microsoft Dynamics ERP solution.

How SK Global Software Can Help

We collaborate with more than 300 banks worldwide, offering extensive integration expertise between Microsoft Dynamics AX and banks. On top of this, our Treasury Automation Suite offers critical and valuable automation of various bank and financial processes between your Microsoft Dynamics ERP, your banks, and TMS solutions.

Update to the new formats at no integration cost, with our expertise you can remain ensured that your Microsoft Dynamics AX ERP solution is directly integrated with your bank according to the new regulations and format types — both domestically and internationally. To ensure customers running Microsoft Dynamics AX ERP are in compliance on time, we are working closely with banks across the European region, offering fully tested plug-n-play integrations on ISO20022 at no integration cost.

To make it even easier for you, you can upgrade and integrate to the new format standard at no integration cost through 31st October 2016, via our Treasury Automation Suite for Microsoft Dynamics AX.

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