Issue

This document doesn't highlight any problem statement or any issue, rather, the purpose of this document is to showcase all the possible integration points between SAP GTS and S4 HANA suite. And also objectify the purpose of these integrations.

Recommendation

Summarise the recommendation being made for the reader, leaving the pro/con evaluation and exact decision-making process to the subsequent sections.

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. Some might also lead to major operational changes within business operations depending on the outcome of the Detailed design phase.

Business Rules

The decision may translate into business rules which enforce the decision and will require configuration. List these business rules here. For example, "An Outline Agreement cannot be created via the RFQ process. An awarded RFQ can only result in a Purchase Order". 

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

All customer, vendor, and material master data, and if applicable, bills of material (BOMs) relevant for preference determination and re-export control, from your feeder system to the SAP GTS system using Remote Function Calls (RFC).

A distinction must be made between the initial data transfer when the SAP GTS system is set up and regular transfers of new or changed data during operation. For the initial data transfer from SAP S/4HANA.

The change pointer creates a connection between change documents and the corresponding message type. When creating or changing a master record, the application program checks whether the change pointer function is activated. If the function is activated, the system saves a change pointer to the database.

For SAP GTS purposes, so-called reduced message types are used. Message types denote the data that can be exchanged between systems in ALE or EDI scenarios, for example, MATMAS for material masters, CREMAS for vendor masters, and DEBMAS for customer masters.

Masters data’s received from external parties

• SPL List: Currently these SPL lists are uploaded manually in GTS (periodically) via a frontend transaction. These are usually an XML file provided by an external data provider (such as Descartes for Syensqo) and dumped in the Network folder. In TO-BE solution , this interface might get automated and post TO-BE this might get added to the RICEF list.
• Duty Rates: Duty rates are also supplied by external agencies and they are uploaded in GTS via frontend transaction within the master data cockpit.
• HTS / Tariff codes/ECCN (Export control classification number) : These are uploaded in the system during cutover (One time) manually via a frontend periodic updates to these. This numbers are used to classify the products in GTS for compliance and customs purposes.

Data Transfer from GTS to Feeder System

• Once the products are classified with a HTS (Harmonized Tariff) this numbers are sent back to the product master in S4. This happens via a change pointer based transfer API maintained in GTS and S4 system. Usually this gets updates via periodic batch jobs. Currently at Syensqo this job is running once daily.

Note : It is also estaiblished during our L3 process mapping sessions that the duty rates will also be transferred back to the feeder for product costing purpose. These rates will be included as an costing element (condition type) in the purchase order line item. A new RICEF entry will be create post TO-BE workshop for this 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

SANCTION PARTY LIST SCREENING (COMPLIANCE MANAGEMENT)

1. You create a sales document or document for materials management in the feeder system.
2. SAP GTS, edition for SAP HANA (SAP GTS) starts sanctioned party list screening automatically. Based on the rules that you configured during implementation, the address data in the business documents is checked against the available sanctioned party lists in the GTS system. You can obtain these lists in XML format from external data providers and upload them to your GTS system. You can also create your own lists.
3. The monitoring features in the GTS system let you easily keep track of all checked addresses.
4. An employee with the appropriate authorizations can use the monitoring capabilities to release blocked documents for further processing.
5. Periodic checks can be set up to check the current available master data. You can configure the sequence that is used for checking the master data. It makes sense to set up the system so that all the master data is checked automatically after every update of the sanctioned party lists.
6. All activities are logged in the area of sanctioned party list screening and can be archived for legal purposes with the SPL audit trail function.

Note: If a document is blocked then some activities pertaining to goods movement such as picking/packing and Goods issues is also blocked in the feeder system. This is controlled via incompletion checks in S4 system based on status checks in GTS.

Legal Control and Embargo Checks

1. You create or change business document in the HANA system.
2. The GTS system starts the export/import control automatically. It checks whether an import or export license is required to import or export the product, based on the settings configured in Customizing for the GTS system.
3. If a license is required, the system assigns the appropriate license automatically to the business transaction.

NOTE : The integration design remains same for any type legal control (EAR and/or ITAR) only the degree ot checks and type of licenses differ.

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

The following documents will be integrated with GTS to support Export Declaration Process.

• Sales document will create a corresponding customs document in GTS and perform neccessary compliance check (as shown in the previous section).
• The outbound delivery will also be screened for compliance check as a well as basic logistics information will be stored in GTS for customs purpose.
• The Freight order from SAP TM will also be transferred to GTS customs shipment document. This will carry the final weights and volumes as well as freight and transportation informations such as container/Seal informations, vessel / Truck informations etc.
• A billing document (proforma or standard invoice) will create the customs declaration document in GTS.
• an Authorized customs representative from Syensqo or a customs broker will file these informations to Customs authorities.
• Customs Authorities will send approval along with customs authorization details (Such as Movement Reference document).
• This document will be transferred back to warehouse and/or carrier in order to perform transportation execution.

Note : These documents recieved from Customs Authorities are also stored in Archive repository for many years (depending on each country's legal requirement , but usually its from 5-15 years).

Evaluation

Outline why you selected a position. The best format could be a pro/con table (sample below), but is up to you as the author. You must consider complexity, feasibility, cost/effort to implement, but also ongoing operational impact and cost. You must consider the program principles and explain any deviations in detail. This is probably as important as the decision itself.

	Option A	Option B	Option C	Option D
Criterion 1	Pro Con	Pro Pro	Pro Con	Pro Con
Criterion 2	Pro Con	Con	Pro Pro	Con Con
Criterion 3	Pro	Con	Con	Pro

See also

Insert links and references to other documents which are relevant when trying to understand this decision and its implications. Other decisions are often impacted, so it's good to list them here with links. Attachments are also possible but dangerous as they are static documents and not updated by their authors.

Change log

Workflow history