Scenario Overview

H94: SAP Global Trade Services (GTS)

Compliance Management

SAP GTS Compliance Management

SAP Global Trade Services (SAP GTS)
SAP GTS is powered by
SAP NetWeaver
Managing global trade
activities across
heterogeneous
technology landscapes
Gain business
insight through
analytical reporting
Integration with
Adobe Forms

SAP GTS, a packaged composite application enables

Proactive regulatory compliance
(Sanctioned Party List Screening, Embargo Check, Import/ Export Control)

Faster customs clearance

(Product Classification, Printing of Trade relevant Forms and Documents, Electronic
Communication with Customs Authorities, AES, NCTS and ICS certification)
Automation of regional trade agreement processes
(Trade Preference Processing capabilities to utilize benefits of EU Trade Agreements and
SAP AG 2006
NAFTA)

SAP GTS Compliance Management

Ensures Trade Compliance Across Borders
SAP
Compliance Management

Key Capabilities
Sanctioned Party List Screening
Screen business partners
Screen documents at every step
(order-to-cash and procure-to-pay
process
Comprehensive documentation
Integration with Logistics, HR,
Financial
Export/ Import Control
Manage export and import licenses
Automated assignment of licenses to
a specific business transaction
Track quantity and value depreciation
Embargo Check
Check for potential embargo
situations

SAP
Customs Management

SAP
Risk Management

Benefits
Avoid costly fines and penalties
through facilitating tighter national
security
Shorter delivery times
through automated trade compliance
processes
Improve worker productivity
via moving to management-byexceptions
Secure your corporate brand
equity
by avoiding negative press
Be prepared for legal audits
by having all required documentation at
hand

Provide visibility
by having one global view across the
entire enterprise

SAP AG 2006

SAP GTS Compliance Management

International Trade Compliance is a Must-Have
Compliance
Management

Sanctioned Party List

Screening

Export Control

Import Control

Sanctioned Party List Screening

Avoid doing business with denied parties
Interface to external data providers
Comprehensive screening against multiple lists, all business partner
Phonetic and linguistic checks
In every process step order to cash, purchase to pay
Checks include one-time customers as well as address changes in documents
The sensitivity of checks is adjustable to specific business needs

Import/ Export Control

Ensure vigilant compliance with trade
regulations
Check and manage import and export licenses
Check for embargoes
Automatic track both quantity and value
depreciation with an import/ export license
Simulation capabilities

SAP AG 2006

SAP GTS Compliance Management

Brings Process Centric Collaboration
Yesterday

Each business unit with its own ERP

systems and Foreign Trade implementations
Compliance data spread among systems
Collaboration knowledge spread across
systems
Relatively difficult to change
Higher IT maintenance costs
Standardization of compliance process
difficult

Today

A common enterprise-wide Global Trade

Service implemented
Compliance data is centrally maintained
Collaboration knowledge is shared across
systems
Relatively easier to change
Relatively lower IT maintenance costs
Standardization of compliance processes

SAP GTS

Internal systems of
the various business
units of an enterprise

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External systems:
exporters, government
agencies, freight
forwarders, etc.

SAP GTS Compliance Management

System Landscape

SAP AG 2006

SAP GTS Compliance Management

Business View: Sanctioned Party List Screening
Prerequisites
Before compliance checks
can be performed for a sales
order, some preparatory work
has to be done. You have to
upload (XML) SPL master
data, and transfer master data
from the feeder system (e.g
R/3, ERP, legacy systems) into
SAP GTS. During the transfer
of the customer master data
from the feeder system to
SAP GTS the customer
master records are checked
against the sanctioned party
list master data. In this
scenario, customer H94-1000
with name Schneider is
blocked because of a record
in the SPL list with name
Schneider.

Customer

Supplier/Manufacturer
Preparatory Transactions
(Load SPL Data / Load
Master Data)

Create Sales Order

Create Sales Order in ERP

with SPL Check

Release Blocked Documents

in SAP GTS

Deliver Sales Order in ERP

Bill Delivery in ERP

SAP AG 2006

Business Benefits

Integration of sales order

processing.
Sales documents are blocked
automatically when a
sanctioned Party list is
detected and subsequent
processes (create delivery or
invoice) are blocked.
SPL Screening is only
possible with the use of SAP
GTS

SAP GTS Compliance Management

Business View: Embargo Check
Prerequisites
As preparatory work, you
have to enter all the countries
with which you do business
in the embargo service. You
require the legal regulation
combined with the country of
departure and destination
information for an embargo
check that SAP Global Trade
Services performs on
documents and business
partners.

Customer

Supplier/Manufacturer
Preparatory Transactions
(Maintain Embargo
Information)

Create Sales Order

Creating Sales Order in ERP

with Embargo Check

Monitoring Blocked
Documents

SAP AG 2006

Business Benefits

Integration of sales order

processing.
Sales documents are blocked
automatically and subsequent
processes (create delivery or
invoice) are blocked if the
customer is in a country
subject to an embargo by
your country.

SAP GTS Compliance Management

Business View: License Determination Service
Prerequisites

The maintenance function

enables you to classify your
products and assign export
and import list numbers to
products. These export and
import list numbers indicate
whether you need a license or
not. Customs authorities are
responsible for ensuring that
companies that trade goods
across borders do so in
accordance with applicable
laws and regulations. To
import and export some
goods, customs authorities
and other government bodies
demand trading companies to
apply for licenses, for
example, a shippers export
declaration. When you create
a sales order in your backend
system containing a material
that you cannot export
without authorization, you
need to find a suitable license
in SAP GTS. When a license is
needed SAP GTS determines
automatically an appropriate
license and assigns it to the
export transaction. A value
and/or quantity depreciation
of the license is possible.

SAP AG 2006

Customer

Supplier/Manufacturer

Business Benefits

Preparatory Transactions
(Create Licence for Dual Use
Material)

Create Sales Order

Creating Sales Document in

ERP with Export License
Determination

Assigning License to Sales

Order

Release Blocked Documents

in SAP GTS

Integration of Sales Order

Processing.
If the system detects that the
license master is missing, the
document is blocked
automatically and you have to
assign a license to the sales
order and then release the
blocked documents in SAP
GTS.

SAP GTS Compliance Management

Component View
Supplier/Manufacturer

Customer
SAP GTS

SAP ERP

Create Data Provider for

Sanctioned Party List Master Data

S
P
L

Create Sanctioned Party

List Master Data
Check Blocked Business Partner

Initial Loading of Master Data

Create Sales Order
with SPL check

Release Blocked Documents

E
m
b
a
r
g
o

Enter Country Information

Legal Regulation: Country
of Departure and Destination

Create Sales Order

with Embargo check

Monitoring Blocked Documents

Define Export List Numbers

L
i
c
e
n
s
e

Maintain Customs
Product Master
Maintain Export License
Determination Strategy
for License Types
Assign License
to Sales Order

Release Blocked Documents

SAP AG 2006

Create Sales Order with

Export License Determination

SAP GTS Compliance Management

Business Overview: Sanctioned Party List (SPL) Screening
Create
Sales
Order

Check against SPL

Check blocked
document; reason
for block

Create sales order; Ship-to party is

not on the list but the address or
name is partially identical to an
business partner on the list

A check against SPL is executed;

system detects a sanctioned party;
document is blocked.

The list entry which was matched

by SPL is shown.

Release Document
Create
Delivery

Create
Invoice

SAP AG 2006

Sales order can be released:

business partner is not on the list;
delivery and billing document can
now be created

SAP GTS Compliance Management

Process Overview: Export Control with Embargo

Create
Sales
Order

SAP AG 2006

Create sales order; an embargo

exists for the country Liberia; the
document is blocked, a delivery
cannot be created

Check in Embargo
Check Service

A check in SAP GTS (Embargo

Check Service) is executed ->
message: embargo situation

Check blocked
document; reason
for block

No release of document in this

process because of the embargo
but it is possible to release it in SAP
GTS.

SAP GTS Compliance Management

Business Overview: Export Control w/License Management
Create
License

Create
Sales
Order
Check in LCE
Call up license and
activate
Create
Delivery

Create
Invoice

SAP AG 2006

Create License (for processor,

laser, chips -> Dual Use)
without activation
Create sales order; the export
license for the business partner
exists but is not activated or not
valid any more (or no document
number); document is blocked,
delivery cannot be created
A check in SAP GTS (Export
Cockpit) is executed -> message:
no valid license
After the license has been updated
the sales order can be processed;
delivery and billing documents are
created

SAP GTS Compliance Management

Configuration
Installation of SAP GTS 7.0 (Add On)
Mapping of organizational structure
Upload of SPL list
Creation of comparison index
Aggregation of comparison index
Initial transfer of customers / materials
Index for business partner adresses

Set up dual use scenario

SAP AG 2006

SAP GTS Compliance Management

Product Structure

Product Structure
H94-1000
TITANIUM MD 8056 PC
HAWA

Material is used for the

scenarios:
SPL screening

Embargo Check

SAP AG 2006

H94-1001
G550 Dual DVI Chip
HAWA

Material is a Dual Use

material and is used for
the scenario:
License Management