In case of correct payment and bank file setup, at manual remittance there is an option "Bank file", press the button, choose place where this file will be downloaded (server or client). No another software is required to download SEPA xml files.

Sometimes the trick is to get the payment transaction configuration correct for SEPA, but you are right, we use it regularly in Portugal.

Thank you ..

I got to know that there is NO additional software required for SEPA XML. Also, I am getting below error when click on "Bank  File" button to generate SEPA bacs file.

However, I am generating XML file manually (custom code) and posting payment through POST button on manual remittance for now. So kindly let me know if you have any idea to avoid those errors.