| Status | Approved |
| Owner | Subhrajit Bose |
| Stakeholders | Gabriella Azzari, Antonio Gonzalvez, Bhargavi Narahari, Sascha Wenninger, Daniel Da Vinci, Alex Bechter, Chad Swance, Mathew Fuller |
Issue
Syensqo currently uses GTS for a number of compliance related capabilities. Some parts are fit for purpose and used comprehensively while others are not used consistently, have significant gaps or not use at all. This KDD provides the options for
1) Standardize the usage of GTS globally
2) Implement those functional capabilities that are not used today
Recommendation
Based on the detailed evaluation done, following is recommended
| Category | Existing Integrations | Improvements | New integrations |
|---|---|---|---|
| Compliance | Sales Order Purchase Order Outbound Delivery Inbound Delivery | Improve SPL checks (Matching with Business Partner) | Freight Order |
| Customs | Sales Order Proforma Invoice Purchase Order Outbound Delivery Inbound Delivery | Process improvement to settle customs costs to material master via Partner functions on Purchase Order, processing the customs invoice and distributing the costs back to the purchase order/material | Purchasing Invoice Freight Order |
| Preference | Billing Purchase Order | Country of origin / Preference data to be stored at batch level ATP Checks include any preferential requirements to be met and relay it to Production | None |
| Intrastat | No | Billing Invoice | |
| Master Data | Materials Business Partners FX | Data cleansing for product classification |
Following functionality is recommended to be implement after the stabilization of GTS (in Phase 2 and beyond)
- Customs warehouse functionality for bonded warehouse
Background & Context
- Inconsistent Application of Compliance Processes:
The lack of standardized usage of GTS across all regions and GBU's results in varying levels of compliance management maturity. Some processes are using the system effectively for activities such as trade compliance screening, license determination, and product classification, while others are not, leading to uneven risk exposure and inefficiencies. - Gaps in Functional Capabilities Utilization:
Several GTS functionalities, including automated Sanctioned Party List (SPL) checks, export control checks, and license management, are either partially used or not utilized at all. This underutilization creates gaps in compliance coverage, increasing the risk of non-compliance with global trade regulations, potential penalties, and reputational damage. - Manual Processes and Operational Inefficiencies:
Due to the incomplete use of GTS capabilities, many compliance tasks are handled manually, such as customs value adjustments and license determination. This not only increases the workload on staff but also introduces the potential for human error, delays in processing, and higher operational costs. - Lack of Global Standardization and Training:
There is no globally standardized approach for using GTS, resulting in inconsistent data quality, varied compliance practices, and suboptimal use of resources. Additionally, the absence of comprehensive training and guidelines on the effective use of GTS across all regions contributes to these discrepancies.
In order to address these challenges, following are the key activities that are proposed:
- Standardize the Usage of GTS Globally:
Establish a consistent, organization-wide approach to utilizing GTS for all compliance-related activities. This includes creating standard operating procedures (SOPs), consistent master data standards and implementing governance mechanisms to ensure uniformity and accountability. - Implement and Expand Unused GTS Functionalities:
Identify and integrate those GTS features that are currently not in use but are critical for comprehensive compliance management. This involves assessing current gaps, customizing functionalities as needed, and rolling out these enhancements incrementally to ensure smooth adoption.
This KDD looks at the options for implementing both the activities.
Below table is the current status of the GTS integration in the current system. The Green color in the table below indicates that the process is currently active in GTS and the yellow color indicates a newer functionality with a potential opportunity to implement as part of ERP rebuild program
There are 2 options considered as part of the KDD
Option 1: Implement the As-Is GTS solution scope
Option 2: Implement the additional GTS solution scope
| Process | Type of Data Object | Documents | Compliance | Customs | Preference | Intrastat | Current Issues |
| Sales | Master Data | Customers | X | X | X | X |
|
| Transactional | Orders | X | X |
| |||
| Transactional | Contracts | X | |||||
| Transactional | Invoice (Proforma) | X |
| ||||
| Transactional | Billing | X | X |
| |||
| Purchasing | Master Data | Vendors | X | X | X | X |
|
| Master Data | Materials | X | X | X | X |
| |
| Transactional | Purchase Orders | X | X | X | X |
| |
| Transactional | Invoices | X | |||||
| Logistics | Outbound delivery | X | X |
| |||
| Inbound Delivery | X | X |
| ||||
| Freight Orders | X | X | |||||
| Good Receipt | X | X | |||||
| Production | Master Data | Production BOM's / Recipes | X |
| |||
| Transactional Data | Production Order | X | |||||
| Finance | Others | FX | X | X | X | X | |
| Tax? | |||||||
| GTS | Others | SPL's and Other integrations | X | X | X | X |
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 the TO-BE GTS instance can be integrated with multiple ERP system.
- NextLabs will be integrated to GTS and therefore the ITAR related access requirements can be fulfilled via NextLabs
Constraints
Not Applicable
Impacts
- Data Cleansing:
- Product classification
- Tax registration information
- Country of Origin
- Change management
- Upstream / Downstream systems
- Integration with 3rd party data providers
Business Rules
Options considered
Following are the options considered for the GTS integration
Option 1: Implement the As-Is GTS solution scope
As a part of this option, the As-Is GTS scope is implemented. There are also some small improvements to the existing processes in scope are included in this option, ex: Optimisation of the SPL check algorithm, improving the master data integrations, including country of origin at batch level etc..
Option 2: Implement the additional GTS solution scope
As a part of this option, the new functionality of GTS is evaluated along with the improvements to the existing process. As part of this option, multiple sub options analysis is done.
Following are the new functionality that is to be implemented as part of this option
| Process | Type of Data Object | Documents | Compliance | Customs | Preference | Intrastat |
| Sales | Transactional | Contracts | X | |||
| Transactional | Billing | X | ||||
| Purchasing | Transactional | Purchase Orders | X | |||
| Transactional | Invoices | X | X | |||
| Logistics | Transactional | Freight Orders | X | X | ||
| Transactional | Good Receipt | X | X | |||
| Production | Master | Production BOM's / recipes | X | |||
| Production | Transactional | Production Order | X |
Implement Compliance in GTS S/4 HANA
Following are the key issues identified in compliance process and the proposal to remediate the same.
| Issue | Remediation Proposal |
|---|---|
SPL checks are not accurate as the business partner matching is not acc | Business partner match criteria for SPL checks to be optimised via a WREFUM |
Proposal to implement compliance for new objects in GTS
| Object | Risk | Option 1 - Implement in GTS in S/4 HANA | Option 2 - Continue with the As-Is Process | Recommendation |
|---|---|---|---|---|
| Sales Contracts | Low | Early view of the compliance results to manage the Risk | There is a moderate risk that we contract with a customer / customer party who is blacklisted | Option 2 - This risk is not high and the Sales Order checks if catch any exceptions. |
| Freight Orders | High | The carriers are screened for compliance automatically. This will increase the automation and decrease the risk of any manual errors | As a part of the As-Is process, the checks are carried out manually and are error prone. There is also of missing the manual checks and therefore end of paying fines | Option 1: It is critical to screen all the carriers before the transportation process is started |
Implement Customs in GTS in S/4 HANA
Following are the key issues identified in customs process and the proposal to remediate the same.
| Issue | Remediation Proposal |
|---|---|
Customs values are manually adjusted for each import declaration as the value from the purchase order might be incorrect - The correct value will be in invoice and it is not integrated to GTS | Proposed to integrate the Invoices so that the correct value is available for GTS to calculate the right customs value |
Customs duties / customs brokers charges are not settled to the Purchase Order (And in turn to the material master and unit price) | Purchase orders will have a condition to maintain the customs duties / charges or customs broker and will accommodate customs broker as a business partner. Invoices received from the customs broker periodically can be settled against the Purchase Order and therefore the costs and the variances are distributed to the material master |
Incorrect customs calculation due to incorrect classification code on material master | Data cleansing to clean-up and match the right material classification |
Proposal to implement GTS customs integration to new object
| Object | Risk | Option 1 - Implement in GTS | Option 2 - Continue with the As-Is Process | Recommendation |
|---|---|---|---|---|
Purchasing Invoices | High | As a part of this option, Supplier/Inter-company Invoices (Incoming) will be transferred to GTS to create Customs invoice. These invoices will be referred to create the import declarations using the invoice value. This will reduce overhead to business and delays to shipment | As a part of the As-Is process, purchasing invoices are not integrated and therefore the customs value is not accurate in GTS. This results in a lot of manual co-ordination and activity to update the customs value The incorrect value on the import declarations, there might be delays the shipment as part of customs inspection | Option 1 - implement the GTS Integration |
Freight Order | High | As part of enabling this integration, freight order will provide all the necessary information for customs clearances such as container, seal number, correct weights and volume, carrier information etc. The customs declaration process therefore can be automated using the data in GTS | Currently all of the shipment information including container, seal number, correct weights and volume, carrier information etc. is added manually in GTS / sending to the brokers to support the customs declaration process This results in a lot of manual co-ordination, additional overhead to business and potentially delays in processing the customs | Option 1 - implement the GTS Integration |
Goods Receipts (Detailed Analysis Below) | Medium | Implement Customs Warehouse Solution (CWH) in GTS to manage and monitor the stocks in bonded warehouse including all the movements real time It will be possible to generate customs documents when required. Also for preference batch numbers will be allocated for the quantity received, hence through IBPP solution in GTS 4 HANA, more specific information can be stored at each batch level and transferred back to S4. | Currently the data of the Bonded Warehouse is sent to a third-party ex: Maersk for customs clearance and filing Any data required wrt to stock and movements will have to be requested by the 3rd party. No Real Time visibility. As for preference, currently supplier declarations are requested against purchase order items. Hence there is dispartiy in critical preference related data, such as country of origin. | Continue with Option 2 - As-Is and implement this functionality after stabilisation of GTS (Phase 2) |
Detailed analysis for Goods Receipt integration with GTS
| Feature and Capability | CWH Solution Using GTS 4 HANA (OPTION A) | Use AS-IS Solution (OPTION B) |
|---|---|---|
| Goods Movement to/from CWH |
|
|
| Stock Keeping and Reconciliation |
|
|
| Audit trail |
System of record is Syensqo |
|
| Operational Expense |
|
|
Implement Preference in GTS in S/4 HANA
Following are the key issues identified in customs process and the proposal to remediate the same.
| Issue | Remediation Proposal |
|---|---|
Country of origin is at product level which drives incorrect preference calculation | Capture the country of origin and preference status at batch level. This will allow accurate country of origin information if the product is multi sourced |
Preference calculation is done only at Sales Order Billing, however it is a lost opportunity as the production team will not have a view on the preference stock requirements | ATP logic will be implemented in the Sales Order to make sure that the preferential data is cascaded to production |
Proposal to implement GTS customs integration to new object
| Object | Risk | Option 1 - Implement integration to GTS | Option 2 - Continue with the As-Is Process | Recommendation |
|---|---|---|---|---|
Production BOM and Recipe | High | Explode the BOM until the raw material level and replicate all the materials to GTS | Only one level of Finished goods BOM is sent to GTS. | Option 2: This is not required as the finished goods batch will have the right information and that can be used for preference calculation |
Production Orders | High | Introduce a preference check at the production order level | No checks on production orders | Option 2: This integration is not required as the ATP checks are going to take care of the preferential treatment of the product during production |
Implement Intrastat in GTS in S/4 HANA
Intrastat functionality though required is not being used currently.
| Object | Option 1 - Implement in GTS | Option 2 - Continue with the As-Is Process | Recommendation |
|---|---|---|---|
Billing and Invoices | As a part of this option, the Intrastat can be generated from GTS without any manual interventions. The required master and transactional data is already available in GTS | As part of the As-Is process Intrastat is generated Manually which is cumbersome and an operational overhead | Use Intrastat functionality in GTS |
Evaluation
Following is the evaluation of both the options
| Functionality | Object | Importance (Directly proportional to the Risk) | Option 1 - Implement in GTS with process improvements | Option 2 - Continue with the As-Is Process |
|---|---|---|---|---|
| Compliance | SPL Checks accuracy | High | High - Implement to improve the Business partner matching to SPL list | Medium- Business partner cleansing will improve the matching, however will not fix the issue totally |
| Sales Contracts Integration to GTS | Low | Low - Extra integration will bring complexity and not a lot of value as by the time contract is created in S/4, it is already signed | High - No integration | |
| Freight Orders Integration to GTS | High | High - Integration will bring enhanced checks for carriers | Low - Manual checks as there is not integration. Will be cumbersome and resource intensive | |
| Customs | Master Data - Material cleansing | High | High - Cleanse the master data to capture the correct product classification which will increase the accuracy and reduce the manual effort | Low - Without cleansing there will not be an improvement in the customs calculations |
| Settlement of customs costs to material master | High | High - Customs costs are attributed to the material costs using the PO and Invoices | Low - The customs costs are expensed to a cost center | |
| Invoice Integration to GTS | High | High - Required to get the correct values for determining the customs values | Low - Without invoice integration, the customs values are calculated in the Purchase Order and might be wrong | |
| Goods Receipts for Bonded Warehouse | Medium | Medium - Implement this functionality with the customs warehouse functionality will allow Syensqo to have better and real-time control on the bonded warehouse | Low - The updated have to be obtained from the 3rd party vendor managing the customs warehouse | |
| Preference | Country of origin / other preference data capture in Batch characteristics | High | High - Allows accurate preference calculation | Low - Manual intervention required |
| Preference requirements during production process | High | High - ATP design in the To-Be will have the functionality of communicating the preferential requirements to the production process | Low - Manual intervention required | |
| Master Data - Lower Level BOM | Medium | Low - Additional data is not required as the batches suffice the requirements | High - No additional data integration as the requirements are already sufficed with the batch characteristics | |
| Production order integration to GTS | Low | Low - Additional data is not required as the batches suffice the requirements | High - No integration as the requirement is already sufficed with ATP checks | |
| Intrastat | Billing and Invoice | High | High: Automation of Intrastat generation | Low - Manual Intrastat |
See also
Change log
Workflow history
| Title | Last Updated By | Updated | Status | |
|---|---|---|---|---|
| There are no pages at the moment. | ||||
Integration Elements in Details - Including TO-BE Process Flow
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)
Master Data Transfer Process between S4 HANA and GTS
- All customer, vendor, and material master data, and if applicable, bills of material (BOMs) relevant for preference determination and re-export control, from the 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. There are standard change pointers available in S4 HANA dedicated for this purpose.
- 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 a Syensqo provided Network directory. 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.
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
Note :Entry Added to Custom Development Register.
SANCTION PARTY LIST SCREENING (COMPLIANCE MANAGEMENT)
| Document Types In Scope | Integration Type | Technical |
|---|---|---|
| Sales Orders/Outbound Delivery/Outbound Invoice/Outgoing Payments | Real Time /Syncronous | T-RFC Enabled (Standard SAP Supported) |
| Purchase Orders /Inbound Deliveries | Real Time /Syncronous | T-RFC Enabled (Standard SAP Supported) |
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.
| Data Element | Data Source (S4 HANA) | Type Of Integration |
|---|---|---|
| Product Price | Accounting View ( Product Master) | Batch Job based on Change pointers _ SAP Standard |
| Procurement Type | MRP View (Product Master) | Batch Job based on Change pointers _ SAP Standard |
| Bills Of Materials | BOM Master | Batch Job based on Change pointers _ SAP Standard |
| Supplier Master Data | Vendor Master Record | Batch Job based on Change pointers _ SAP Standard |
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
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.
- 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
Integration Elements
- Production /Service Orders (S4 HANA)
- Purchase Orders
- Goods Receipt
SAP TM Integration with GTS
To clear the shipment from Customs, SAP TM also sends the Freight Orders to SAP GTS that undergo the Screening and create Customs Declarations. They are in turn used to do filing with Customs Authorities. Items of Integration in SAP S/4HANA with SAP TM to SAP GTS:
• Master Data Transfer from SAP S/4HANA or SAP ECC to SAP GTS
• Integration of Forwarding Order in SAP TM to SAP GTS Compliance Document
• Integration of Freight Order from SAP TM to SAP GTS Customs Declaration
In terms of SAP TM Documents that integrate with SAP GTS standard out-of-the-box are following:
• Compliance Check for Sanctioned Party Screening on SAP TM Forwarding Order
• Compliance Check for Embargo Screening on SAP TM Forwarding Order • Export Declaration Creation in SAP GTS from SAP TM Freight Order
| Document Flow | Business Functions | Existing Functionality | Integration Type | Requirement Type | Alternative | Impact of integration Missing | Recommended By Architect? |
Sales Document integrated to GTS (Quotatio / Sales Order) | Compliance Checks | YES | SAP Standard | Statutory | Manually perform compliance checks against each legal regulation. | Huge Business Risk, Massive operational overhead and expense, increase in order management time. | YES |
| Logistics (Outbound/Inbound Delivery) document integrated to GTS | Complance / Customs | YES | SAP Standard | Statutory | Manually perform compliance checks against each legal regulation. And Manually creating customs declaration document either in GTS or submit to brokers with only business documents. | Huge Business Risk Massive operational overhead Additional Operational expense, increase in order management time, Delay in Customs Filing and risk of goods clearance on time.Additional charges for broker management. | YES |
| Purchase documents Integration with GTS | Compliance/Customs/Preference | YES | SAP Standard | Statutory | Manually perform compliance checks against each legal regulation. And Manually creating customs declaration document either in GTS or submit to brokers with only business documents.As for preference very little alternative is available to be performed within the business hence outsourcing this business function. | Huge Business Risk Massive operational overhead Additional Operational expense, increase in order management time, Delay in Customs Filing and risk of goods clearance on time.Additional charges for broker management. | YES |
| Invoice(Proforma) Integration with GTS | Customs and Preference | NO | SAP GTS | Statutory | Manually perform compliance checks against each legal regulation. And Manually creating customs declaration document either in GTS or submit to brokers with only business documents.As for preference very little alternative is available to be performed within the business hence outsourcing this business function. | Apart from everything above there is serious financial loss as there is risk of loosing preferential duty treatment and values. Incorrect declaration of preferential statement in commercial invoice. | YES |
| Freight order (TM) with GTS | Customs | NO | SAP GTS | Statutory | Business will manually enter these freight related data's in customs declaration before submitting to the authorities. | Incomplete customs declaration, Customs penalty. | YES |
| Identity Based Preference Processing | Preference Management | NO | SAP GTS | Statutory | Business will have to mantain preference information based on worst case scenario. (See Comparison Matrix in the recommendation section, highlighting detailed pro's and con's) | Apart from Business Risk the following Elements will be missing , if this integration is included in the TO-BE Solution.
leveraging more granular data.
| YES |
| Intrastat Reporting using GTS 4 Hana and S4 International Trade | Enterprise Compliance Reporting | NO | SAP GTS | Statutory |
| The following additional Features will be missing (for more details see Intrastat 101 section below)
| YES |
| Use GTS 4 HANA for the customs warehouse flow | Customs | NO | SAP GTS | Statutory | Use Existing solution (integration to external agencies such as MAERSK via control tower). | The following Advantages will be missing if the integration is not available.
| YES |
- IBPP (Identity Based Preference Processing Vs Convetional GTS Preference)
| Feature and Capabilities | Preference Management GTS (Option A) | Identity based preference processing - GTS 4 HANA (Option B) |
|---|---|---|
Utilize content-based rules of origin to find out which products are eligible for reduced import duty rates. |
Present |
Present |
Collect relevant purchase orders and material documents |
Present |
Present |
| Calculate product origin for products using official trade agreement rules |
Present |
Present |
| Determine preference eligibility using different methods such as sales documents, invoices, and bill of materials |
Present |
Present |
| Automatically generate and manage declarations for customers receiving your products |
Present |
Present |
| Issue and reissue declarations in the event of a change in preferential eligibility |
Present |
Present |
| Integrate with sales and distribution processing in the SAP ERP application and customs management in SAP GTS |
Present |
Present |
| Maximize your preference determination by leveraging more granular data |
Absent |
Present |
| Calculate only the components or raw materials that are used during the production process |
Absent |
Present |
| Achieve a more precise result |
Absent |
Present |
| Conduct preference processing via specific batches |
Absent |
Present |
| Store preference status at the batch level |
Absent |
Present |
| Enable picking directly from eligible batches for customer shipments |
Absent |
Present |
RECOMMENDATION : (OPTION B) IBPP
2. Use GTS CWH Functionality
Recommendation: Based on the evaluation table above using CWH solution with GTS 4 HANA.
lead to add