Purpose

The purpose of this document is to define the conversion approach to create Materials - International Trade Views in S/4 HANA and GTS.

The International Trade view in SAP S/4HANA is designed to support companies in managing all regulatory and compliance requirements related to cross-border trade. It replaces the classic "Foreign Trade" views from SAP ECC and centralizes key data needed for customs, export, and import processes.

Conversion Scope

The scope of this Materials - International Trade Views document covers the approach for converting active Material Foreign Trade data from Legacy Source Systems into S/4HANA Material International Trade data and GTS following the Materials - International Trade Views Master Data Design Standard: DD-FUN-050 Master Data Standard_2029-Materials - International Trade Views.

This is to meet the Legal and Regulatory requirements for Plants with Plant Country Brazil and India.

For Brazil:

Control Code: Stores the NCM (Mercosur Common Nomenclature) code used for customs classification, tax determination, and fiscal reporting. This field is mandatory for all materials involved in taxable transactions in Brazil. This requirement is applicable to all material types for Brazil.

CFOP Category: Defines the CFOP category (Fiscal Operation Code) associated with the material. The CFOP determines the nature of the transaction (such as sale, return, import, or transfer) and is required for proper tax calculation and electronic fiscal document (NF-e) generation in Brazil. This requirement is applicable to all material types for Brazil.

For India: 

Control Code: Store HSN (Harmonized System Nomenclature) used for GST determination, Tax access sequence and supports statutory reporting requirements like GSTR-1 and GSTR-3B, where HSN-wise tax summaries are needed. 

From the current system landscape, Materials - International Trade Views exist in both legacy systems - PF2 and WP2 (Foreign Trade: Export Data and Foreign Trade: Import Data). Harmonization and validation are required to ensure the accurate and consolidated data in S/4HANA and GTS. While PF2 and WP2 serve as source systems, a mapping and transformation logic will be necessary to produce properly formatted load templates in line with the target design.

The data from legacy system includes:

1. Material Basic Data View is migrated as per CNV-2019 Materials - Basic Data View.
2. The Plant for Materials - International Trade Views has country = BR (Brazil) or IN (India) and is within the scope of S/4HANA.
3. No flag for deletion at Plant level (MARC-LVORM)

Additional Information

Multi-language Requirement

N/A

Document Management

N/A

Legal Requirement

Material CFOP category:  is used to determine the proper CFOP. The CFOP determines the nature of the transaction (such as sale, purchase, return, import, or transfer) and is required for proper tax calculation and electronic fiscal document (NF-e) generation in Brazil.

Control Code - BR: NCM codes are required for materials used in company codes to comply with tax and legal reporting. The NCM code determines applicable federal taxes (e.g., IPI, PIS, COFINS) and is printed on the nota fiscal.

Control Code - IN: HSN codes are required for materials used in India company codes to comply with GST tax determination and legal reporting.

Special Requirements

Due to compliance requirement, there will be one SAP instance for Rest of the World (ROW), one for China and one for CUI. For Materials - International Trade Views, the same data will be created in all 3 SAP instances as it is Tier 1 object with central data governance and maintenance rule.

For Material Control Code records, it will also be migrated to GTS.

After Go-Live, this Material Control Code would come from GTS through an enhancement, as GTS is responsible for populating and maintaining the control code to ensure compliance with international trade regulations. This is a field commonly used in S/4 for tax determination but also leveraged in GTS for customs controls, embargo checks, and legal regulation alignment.

Target Design

Materials - International Trade Views Data strictly adheres to the Master Data Standard. The complete information of the key fields that hold the Materials - International Trade Views information follows the Master Data Standard document.

The technical design of the target for this conversion approach.

Data Cleansing

All data cleansing should take place in the data source system as defined in this document, unless system limitations prevent it.

Materials - International Trade Views

ALL Data Cleansing should be after Relevancy Rule

Conversion Process

The high-level process is represented by the diagram below:

The ETL (Extract, Transform, Load) process is a structured approach to data migration and management, ensuring high-quality data is seamlessly transferred across systems. Here’s a breakdown of its key components:

1. Extraction
The process begins with extracting metadata and raw data from source systems, such as Syensqo ECC system WP2 and PF2. The extracted data is then staged for transformation.

2. Transformation
Once extracted, the data undergoes cleansing, consolidation, and governance. This step ensures data integrity, consistency, and compliance with business rules. The transformation process includes:
- Data validation to remove inconsistencies.
- Standardization to align formats across datasets.
- Business rule application to refine data for operational use.

3. Loading
The transformed data is then loaded into the target S/4HANA system. 

Data Privacy and Sensitivity

Extraction

Extract data from a source into Syniti Migrate for SAP ROW and SAP China relevant entities. There are 2 possibilities:

1. The data exists. Syniti Migrate connects to the source and loads the data into Syniti Migrate. There are 3 methods:
   1. Perform full data extraction from relevant tables in the source system(s).
   2. Perform extraction through the application layer.
   3. Only if Syniti Migrate; cannot connect to the source, data is loaded to the repository from the provided source system extract/report.
2. The data does not exist (or cannot be converted from its current state).  The data is manually collected by the business directly in Syniti Migrate. This is to be conducted using DCT (Data Collection Template) in Syniti Migrate.

The agreed Relevancy criteria is applied to the extracted records to identify the records that are applicable for the Target loads

Extraction Run Sheet

Selection Screen

Data Collection Template (DCT)

Target Ready Data Collection Template will be created for Materials - International Trade Views data with exception of some fields which require transformation as mentioned in the transformation rule.

Materials - International Trade Views

DCT for when data not available in ECC, e.g. service material master data (table: ASMD), service material for WP2/ PF2 billing via Finance to S/4 billing via SD, new plant in scope with legacy system non-ECC, etc.
Business to manually fill-up/ update all required fields.

Note: all rules specified below should be documented as a tooltip in the DC Page.

Extraction Dependencies

Transformation

The Target fields are mapped to the applicable Legacy field that will be its source, this is a 3-way activity involving the Business, Functional team and Data team. This identifies the transformation activity required to allow Syniti Migrate to make the data Target ready:

1. Perform value mapping and data transformation rules.
   1. Legacy values are mapped to the to-be values (this could include a default value)
   2. Values are transformed according to the rules defined in Syniti Migrate
2. Prepare target-ready data in the structure and format that is required for loading via prescribed Load Tool. This step also produces the load data ready for business to perform Pre-load Data Validation

Transformation Run Sheet

 List of Custom Target Reports for this object is maintained here: Conversion Specification - Custom Reports Register.

Transformation Mapping

Transformation Dependencies

Pre-Load Validation

Project Team

Completeness

Accuracy

Business

Completeness

Accuracy

Load

The load process includes:

1. Execute the automated data load into target system using load tool or product the load file if the load must be done manually
2. Once the data is loaded to the target system, it will be extracted and prepared for Post Load Data Validation

Load Run Sheet

Load Phase and Dependencies

The Materials – International Trade Views will be loaded in the pre-cutover period.

Before loading, it will have dependency on the configuration and 2019 - Materials-Basic View. The configuration needs to be transported into the respective system first, including the manual configuration such as the number range set up. And 2019 Materials-Basic View have to be uploaded into the respective system first.

Configuration

Conversion Objects

Error Handling

Post-Load Validation

Project Team

Completeness

Accuracy

Business

Post-load validation is a critical step in data migration, ensuring that transferred data is accurate, complete, and functional within the target system.

1. Ensuring Data Integrity
After migration, data must be consistent with its original structure. Post-load validation checks for missing records, incorrect mappings, and formatting errors to prevent discrepancies.
2. Business Continuity
Faulty data can disrupt operations, leading to financial losses and inefficiencies. Validating post-load data ensures that applications function as expected, preventing downtime.
3. Error Detection and Resolution
By validating data post-migration, businesses can detect anomalies early, reducing the cost and effort required for corrections

Completeness

Accuracy

Key Assumptions

• Materials - International Trade Views Master Data Standard is up to date as on the date of documenting this conversion approach and data load. 
• Materials - International Trade Views is in scope based on data design and any exception requested by business.
• There will be 3 SAP instances, one for ROW, one for China and one for CUI only.
• And 1 GTS instance.

See also

Change log