Issue

This document has captured the existing integration from current Syensqo business process which will be replicated in the new GTS 4 HANA as well as the new functionalities and integrations recommended as a part of TO-BE.

The newly added functionalities are the following.

Recommendation

Please see the matrix below outlining each of the critical interface. Also in the Recommendation 

Background & Context

The reason these integrations are required are primarily to serve various statutory obligations syensqo needs to adhere to in order to perform any cross border trade. All these integrations are SAP standard integrations and as per industry best practices.

Assumptions

It is assumed that GTS for HANA suite will be available to deliver the TO-BE E2E solutions for each of the scenario's/ Integration documented in this KDD.

It is also assumed that there could be changes or modifications within these interfaces based on specific requirements or localizations during detailed design phase.

Constraints

To be discussed 

Impacts

• These integrations might have impact in various functional areas in the feeder system ( S4 HANA). Some might also lead to major operational changes within business operations depending on the outcome of the Detailed design phase.
• An integration solution might be required to automatically transfer data from Data provider to GTS and perform subsequent activity in GTS, such as aggregate search index for newly created or changes SPL list etc.

Business Rules

Integration Elements

Overview

Integration between Feeder System and GTS happens due to compliance, customs, preferential and statistical reporting activities.

The following functions in GTS are supported and performed due to these integrations.

Note : All these activities in GTS are statutory and obligatory (except intrastat reporting which can be done via HANA international trade module).

• Master Data’s
• Sanction Party list Screening (Compliance Management)
• Legal control Activities including ITAR compliance ( Compliance Management)
• Embargo Screening (Compliance Management)
• Export and Import Declaration Activities both E-Filing and Broker enablement (Customs Management).
• Preference Calculation (Risk Management)
• Intrastat Reporting (Enterprise Compliance Reporting)

MASTER DATA (Continuation of AS-IS)

Additional Master Data Integration Requirement

CUSTOMS EXCHANGE RATES

In selected country’s the exchange rates are required to be updated in the system from their designated financial authorities. These exchanges are required to be periodically updated in the S4 HANA system and a standard SAP supported batch job will update them in GTS.

Failing to update have them correctly updated will create disparity between origin curreny (Invoice currency) and Customs Currency during customs filing ( For imports). This might lead to Show Cause or Penalty from customs authorities.

Some Reference Links are shared below

Germany (offers multiple formats for download): http://www.zoll.de/SiteGlobals/Forms/KursSuche/KurseSuche_Formular_NotierteWaehrung.html;jsessionid=AD1637C99B2440FF0596E59C35C0FF7F

Netherlands :https://www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/customs/reference_books_and_other_information/currency_exchange_rate/currency_exchange_rate

Note :Entry Added to Custom Development Register.

SANCTION PARTY LIST SCREENING (COMPLIANCE MANAGEMENT)

Legal Control and Embargo Checks

E2E Integration for Customs (Export/Imports)

Overview

For Customs Management, you can transfer four categories of feeder system documents to SAP GTS: The replicas of purchasing documents and material documents are referred to as customs declarations in SAP GTS. Inbound deliveries and billing documents can be transferred as both customs declarations and customs shipments.

• Purchasing documents
• Sales Documents
• Logistics and Transportation Documents
• Material documents
• Billing documents

TO-BE EXPORT PROCESS AT A GLANCE

IMPORT PROCESS

Overview

Unlike Export the import processing has more variations depending on type of import (Duty Paid/Duty Unpaid/ Process Reliefs/Foreign Trade Zone etc) and Customs Territories (US, EU, Non-EU, China, India etc). Each of these flows will also impact the document integration and data exchange between SAP GTS and S4 HANA.

Import Declaration Prior To Goods Receipt (Duty Paid)

Customs declarations prior to goods receipt let you to declare imports to the customs authorities before you take physical possession of the goods. This lets you start the customs declaration process for the transfer of third-country goods to free circulation directly at the border, for example, and complete it with verification of the declared data after goods receipt. This procedure is needed, for example, to obtain a release from the customs authorities for goods that have arrived at a port or airport and have to be placed into a customs status before transportation further inland is possible.

Import Declaration After Goods Receipt (Duty Un-Paid/Bonded Warehouse)

Overview

Special customs procedures, such as customs warehousing and outward processing are some of the scenario's where a material document from feeder system is used to create the import declaration with the customs authorities. In such cases,you have to post the goods receipt directly from the inbound delivery and the inbound delivery must have a purchase order reference.

PREFERENCE PROCESSING

Overview

Preference Processing supports an exporter to meet the legal requirements for preferential customs treatment and document your products as eligible for preferential treatment.Based on this documented eligibility for preferential treatment, the exporter's customers can import these products duty-free or at a reduced rate of import duty, giving the exporter a decisive competitive advantage.

Master Data Integration Requirements (Pre-Requisites)

The following master data elements are transferred from the feeder system to GTS.

INTRASTAT _SAP S/4 HANA for International Trade and SAP GTS (Integrated Solution)

Introduction

Intrastat is a statistical reporting system used in the European Union (EU) to collect information on the movement of goods between EU member states. It is a means of monitoring and analyzing trade flows within the EU's single market. Intrastat is implemented in each EU member state and requires businesses to provide detailed data on their intra-EU trade activities.
The Intrastat system applies to businesses that exceed certain thresholds for the value of goods dispatched (sales to other EU member states) and the value of goods acquired (purchases from other EU member states). The thresholds vary by country.
Under Intrastat, businesses must report specific details about their cross-border transactions, including the commodity code, value, quantity, and partner country of the goods traded. These details enable national statistical agencies to gather data on intra-EU trade and compile statistics on imports and exports within the EU.

PROCESS FLOW

INTRASTAT ARRIVALS

Source Documents from Feeder System (ERP_S4 HANA)

• Purchase Orders
• MM Schedule Lines

Integration steps

• The source documents are Purchase Orders and MM Scheduling Lines. Some parts of the data required for the Intrastat report can be taken directly from the purchase order.
• The delivered quantities (goods receipts) and the values provided by the vendor in the invoice (invoice receipts) will be determined from the PO history (document flow).
• There is no direct link between the individual goods receipts and the invoice receipts; the assignment happens chronologically.
• The declaration currency is predefined by country. As documents can also be created in different currencies, a conversion into the declaration currency is often necessary.

INTRASTAT DISPATCHES

Source Documents from Feeder System (ERP_S4 HANA)

• Billing Documents

Integration Steps

• Billing documents are created for goods already delivered to customers. These billing documents contain all the values required for Intrastat, including the invoice and statistical values.
• The declaration currency is predefined by country. As documents can also be created in different currencies, a conversion into the declaration currency is often necessary.

The following SD sales document categories are processed by the Intrastat programs:

• Invoice
• Invoice Cancellation
• Credit and Debit Memo
• Inter-Company Invoice
• Inter-Company Credit Memo

The four illustrations below illustrate the system's behavior and the partner's responsibility given different scenarios for Dispatch reporting.

ADDITIONAL FUNCTIONALITIES RECOMMENDED ( SUBJECT TO TO_BE WORKSHOP)

There are 2 additional functional elements recommended to Syensqo based on GAP's identified during AS_IS workshops. Both of these 2 functionalities are supported by standard SAP and is available in GTS 4 HANA Business Suite. These 2 functionalities attract additional integration elements with S4 HANA hence it is included in this document.

1. IBPP (Identity Based Preference Processing)

Problem Statement

As of now, Syensqo experiences major issues with critical data elements such as ' Country of Origin' . Currently this information is mantained at the product level but there are challenges to store accurate COO information based on stock sourcing. There could be multiple origin for the same product or there could additional component utelized in producing the item, and both of these are reason that leads towards incorrect preference calculation. As a result there are significant amount of loss in trade savings.

Overview

identity-based preference processing supports exporters in fulfilling all legal requirements for customs preferences and identifying their goods as eligible for preferential treatment. Users can determine the preference status of production and process orders at an identifier (Batch) level. The application supports preference determination on production and process orders with static bill-of-materials (BoM) based on actual goods consumption.

The difference between IBBP and standard preference functionality is that instead of calculating configurable materials in sales documents, the system calculates process orders or production orders with the actually consumed components and quantities.

NOTE: IDENTIFIER IN IBPP = BATCH MASTER

COMPARISON BETWEEN GTS PREFERENCE AND IBPP

2. SPL For FI Payments

Integration Steps

1. The bank statement is received from the bank.
2. The bank statement is pre-processed to make it importable for FF.5
3. FF.5 is run.
4. Incoming payments (document type FIIN) are created from the bank statement.
5. The incoming payment is transferred to GTS.
6. GTS screens the vendors, banks, and additional partner functions on the incoming payment for SPL and embargoes.
7. If there is a hit, GTS sends the block back to FI.
8. If the incoming payment is blocked, no further processing on the incoming payment takes place unless the block is cleared by the compliance team.
9. If the incoming payment is not GTS blocked or its GTS block is cleared, the incoming payment is posted.
10. If the incoming payment is not GTS blocked or its GTS block is cleared, the incoming payment is cleared against the invoice.

Evaluation

See also

Change log

Workflow history