The financial world is facing a significant change: With ISO 20022, payment transactions will be converted to a uniform, XML-based message format. Banks and companies must adapt to new requirements – from account statements to SEPA transfers and direct debits.
Why ISO 20022?
SEPA was converted to the ISO 20022 standard over ten years ago. Now the next step is coming: the previously parallel, often proprietary formats such as MT940, MT942, and MT100 will be permanently discontinued. From November 2025, they will no longer be supported by SWIFT – instead, camt formats for account statements and pain messages for payment orders will come to the fore.
National and International Standards
In Germany, the German Banking Industry Committee (Deutsche Kreditwirtschaft) plays a central role, while internationally, the Common Global Implementation (CGI) is decisive. Although both follow ISO 20022, they differ in details – which often means additional adjustments for companies.
Important Changes
- Account statements: MT940 will be replaced by camt.053, MT942 by camt.052, and MT900/910 by camt.054.
- Payment orders: New pain versions (e.g., pain.001.001.09) allow for additional information, such as the Legal Entity Identifier (LEI).
- Address data: In future, only structured or hybrid addresses will be permitted. Unstructured formats will be discontinued.
- Real-time payments: From October 2025, the amount limit will be abolished and the execution time will be reduced to 10 seconds.
- Verification of Payee (VoP): New security check for SEPA payments – the bank and name of the recipient must match.
SAP-Specific Adjustments
The transition to ISO 20022 affects not only banks but also ERP systems, especially SAP. Here are the key areas of action:
1. New Format Trees in SAP (DMEE → DMEEX)
- Previously used SEPA format trees are no longer maintained and must be replaced by CGI-XML format trees.
- DMEEX (Extended Data Medium Exchange) is a modern tool that replaces DMEE. Companies should migrate and test existing format trees at an early stage.
2. Account Statement Processing (camt instead of MT940)
- Account statements in XML format (camt.052/053/054) require XSLT transformations so that they can be imported correctly into SAP internal tables.
- Customizing adjustments and, if necessary, bank-specific transformations are necessary because the formats differ from bank to bank.
3. Business Transaction Codes (BTCs)
- The previous three-digit GVCs are being replaced by twelve-digit BTCs.
- Companies must review their customization and, if necessary, adjust posting rules, as a GVC may be assigned to several BTCs in the future.
4. Master Data Quality
- Structured addresses are mandatory – however, many SAP systems have unstructured address fields (e.g., street and house number together).
- Master data cleansing is necessary here to ensure that payment files comply with the new standards.
5. Real-Time Payments and Verification of Payee (VoP)
- With ISO 20022, SEPA real-time payments can be initiated directly from SAP.
- For the new Verification of Payee, companies should check whether the names and IBANs of their business partners are correct and consistent.
Conclusion
The migration to ISO 20022 is not purely an IT project, but also affects processes, master data, and cooperation with banks. Those who act in good time can not only meet regulatory requirements, but also benefit from the advantages: greater transparency, faster payments, and more efficient processes.
