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

Please see the matrix below outlining each of the critical interface.

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).

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.

In this scenario the GTS system creates a replica of the purchasing document and collects the data in an overview. The inbound delivery data can also be used to update the quantities and values in a customs declaration prior to goods receipt, the system collects the purchasing document data in an overview to update the data. The data is updated as soon as you save the inbound delivery in the feeder system. This lets you use the quantity that the supplier has actually shipped in your transaction.

From within the overview, you can create a customs declaration and start the communication process with the authorities. The customs duties will be calculated in both the replicated purchasing document and in the customs declaration prior to goods receipt. It does not matter whether your customs declaration contains items from one or more suppliers (consolidation of multiple purchase orders to one import declaration is supported by standard GTS).

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.

At Syensqo the following variants will be performed depending on business process and geography.

• Release products to free circulation or place them in a special customs procedure

• Release partial quantities to free circulation

• Delete a material document item that has no influence on stock postings of a special customs procedure

• Delete partial quantities of material document items.

POSSIBLE ADDITIONS TO SYENSQO TO-BE IMPORTS PROCESS DESIGN (RECOMMENDED)

Customs Invoice : Integration of inbound invoice (Inter-Company or Supplier Invoice) to create customs Invoice in GTS. Subject to our TO-BE discussion, this might be an additional element which will created in GTS . The following elements will be accurately updated in import declaration before submitting to the authorities.

• External Invoice Number
• Value
• Invoice Date
• Invoice Currency
• Incoterm 
• Invoicing Party

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.

Process Steps 

1. The feeder system transfers information on supplier-product relationships to the GTS system for Preference Management. The GTS system can create proposals for further processing from this data.

2. Based on the business documents (Purchase Orders) , the system can create proposals for requesting long-term supplier’s declarations for which you do not have an LTSD. During creation, current supplier data, for example, the communication method and the request relevance, is taken into account. You can now send the request for long-term supplier’s declarations to your supplier.

3. When you receive a long-term supplier declaration from your suppliers, you have to enter and release them in the GTS system.

4. The system aggregates products based on existing goods receipts and released long-term supplier’s declarations.

5. The system uses the threshold value from preference determination. In this process, it combines the statements for each material, based on the rules and procedures of the preference agreement, regardless of whether valid or invalid supplier’s declarations are available. The system archives the results of preference determination to enable further monitoring and audits.

6. When you create or change an order or billing document in the feeder system, the system compares the threshold value with the ex works price from the order or billing document.

7. If the product is eligible for preferential treatment, the system sets the preference indicator.

8. You can issue long-term supplier’s declarations to your customers. The system can create proposals based on business documents.

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