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ERP SD LEGAL CONTROL - License check – material

specific (SD-FT-CON)
Created by Szilvia Hilken, last modified by Former Member on Jul 23, 2015

Purpose

The purpose of this wiki page is to give an intorduction on the material specific license check functionality within SD.

How to activate the license check?

To enable the execution of the export control for a material it has to be marked as subject to licensing.
The check has two parts: 1.Is the export of the material subject to licensing? 2.If yes, is a matching license for the export
available?

How to mark a material as subject to licensing?

Customizing
Aim of the customizing:
The aim is to divide the materials which are subject to licensing into groups, for which then it can be determined which type of
export license is required.
Legal regulation:
Whether a material is subject to licensing is determined by the legislative authorities. The legal regulations are provided by
them.
First the legal regulations must be defined in the system, based on which a license is required. The abbreviation for these can
be freely defined:
Legal Control -> Define Legal Regulations and Assign by Country -> Legal Regulations (transaction VE50, table T606G)
It is also determined here if the check for this legal control is to be carried out for all materials or only for those specially
marked in the material master (indicator “Indiv. maint. matl master” - see field above).
As the legal regulations are always valid for individual countries or groups of countries (e.g. EU) it must be determined in
which country the legal regulation is valid. The country here corresponds to the dispatching country in the sales order (i.e. the
country where the goods are delivered from, generally the country of the delivering plant):
Legal Control -> Define Legal Regulations and Assign by Country -> Country / Legal Regulations (transaction VE52, table
T606A)

Material classification
Within each legal regulation the materials are classified by the authorities. These officially defined material classifications are
to be defined in the system, depending on the legal regulation (at least for the ones for which I have exportable materials):
Legal Control -> Export Control Class transaction VE60, table T606H
The official names of these classification numbers are:
Germany -> Ausfuhrlistennummer (Export List Number)
USA -> ECCN (Export Control Classification Number)

Each material can only belong to one classification per legal regulation.
Material grouping
To minimize the maintenance efforts the material classifications whose licences are to be handled the same way can be
grouped together. For this so called ‚material goupings‘ can be defined. The naming is arbitrary:
Legal Control -> Define Groupings transaction VE61, table T606B

The material grouping‘s relevance is in determining which license is required.

Assignment of material classifications to a material grouping
Now the different material classifications can be grouped together under a material grouping:
Legal Control -> Assign Export Control Classes to Groupings transaction VE62, tableT606I

Remark:
As in table T606I the material classification as well as the material grouping are part of the key fields, it is also possible to
handle materials with the same classification in a different way (i.e. separation instead of grouping).
Here it is also possible to set a default grouping, which will be proposed automatically when creating a new entry in the
material master with a specific classification.
Now the requirements are completed for dividing the materials subject to licensing into groups. In the next step these data
can be assigned to the material master records.

Material master
After these preliminary steps the next step is the material master maintenance :
MM02 -> Tab: Foreign Trade Export -> enter plant -> section “Legal Control” -> button “Legal Control”
Here the previously defined legal regulations are visible which are defined for the plant country. The “active“ indicator shows if
the legal regulation has been activated in customizing.
In case in the material master the indicator “Indiv. maint. matl master” has been set (see above) then the legal regulation has
to be activated separately by ticking the “Indiv” checkbox here.
Now the material has to be assigned here to a material classification per legal regulation.
For this material classification a material grouping (which is allowed as per the customizing) must be entered (check F4 help
for the options).
Now the settings are complete.

Special features:
If a legal regulation is generally valid (i.e. “Indiv. maint. matl master” is not set) certain materials can still be exempt from the
export control if a so-called “Clearance certificate” is issued. For this the number of the Clearance certificate provided by the
authorities must be entered in the material master:
MM02 -> tab “Foreign trade Export” -> enter plant -> section “Legal control”.
In addition to the number a code and the issue date must be entered (fields MARC-PRENO / -PRENC / -PREND). The
material will be exempt from the control only if the code “B” (=Accepted) and a date is entered.

How to define and create licenses?

Customizing
In the first step it has to be determined how the export license should look like (depending of the legal regulation).
Legal Control -> Define Types of License Masters, Tr. VE51 (Table T606)

Details ->
A license master type is created and it is determined what data can be specified later during maintenance in this license
master type, e.g. customers, material classification, destination countries, etc. This allows maintaining a license master of this
type in a way that it can be used only for specific customers, material classifications, destination countries, etc. This check is
done by the export control during document processing.
As many license master types can be defined per legal regulation as required. It also must be defined in customizing which
license master type is suitable: The license master type that needs to be used is determined depending on the legal
regulation, the destination country and material grouping defined in the material master.

Legal Regulation -> Define Product Classification by Destination Country Tr. VE58 (table T606M)
In the sales order the following are checked:
- based on which legal regulation the check must run?
- which country should the goods be delivered into?
- which material grouping is assigned to the goods to be sold in the material master?
With the above information the license master type to be used is determined from customizing.
If for the destination country of the sales order no corresponding entry is available, the export control will give a negative
result (red light).
If for the destination country of the sales order a corresponding entry is available, but no license master type is
assigned, then no license check is carried out. The export control will give a positive result (green light).
Under the customizing option “Define Types of License Masters” there is an indicator “Partner function specified”,
which can be set if also the indicator “Customer-specific” is set. In this case all partner roles used in the sales order to
be checked must be marked in the license master and an allowed customer number must be specified. It is thus not
sufficient to mark the partner role “Sold-to party” and to specify when in the sales order also the partner role “Ship-to
party” is used. At the creation of the license it must be exactly defined for which partner combination it can be used.
Note: in the opposite case, i.e. if in the sales order one of the partner roles marked in the license is missing, it is
irrelevant for the export control.

License creation
Transaction VX01N ->
As described above, the appearance of the license depends on the legal regulation and the license master type.
In the license the data (attributes) can be specified which have been selected in customizing under the option “Define Types
of License Masters”.
Normally a license is time-limited, i.e. it is valid only within a specific time frame. The validity time frame can also be specified
here.
Normally a maximum value can also be specified. This means that the license is valid up to this value. If the maximum
value is exceeded, the sales order is blocked by export control.
A maximum quantity can also be specified. But: contrary to the maximum value, here neither an update nor a check
takes place for this. Its only effect is that during maintenance of the license an input field is available in which the
quantity already used up can be entered manually.
The licenses provided by the authorities are numbered. This should be entered in the field “Ext.license no.”
For activating the license the status ‘C’ (“Accepted”) has to be set. Only with this status the license will be accepted as
valid during the check.
For BOMs the export control data must be maintained in the material master of the BOM header. If a license is
required for a BOM component, this information is not handed over to the BOM header.
For configurable materials (material type KMATs), just like for BOMs, a license determination can only be executed at
header level, i.e. not depending on the selected attributes.

How is the check carried out in the sales order?

Level check
Internally a function module is called, where the check happens. This has 3 steps:

1. Boycott?
Yes -> check ended -> status: not OK
No -> go to step 2

2. Embargo?
Yes -> check ended -> status: not OK
No -> go to step 3
 3. License required?
Yes -> is license available?
Yes -> check ended -> status: OK
No -> check ended -> status: not OK
No -> check ended -> status: OK

The license check is carried out at material level as it is material-dependent. It is defined in the customizing how the license
master is to be obtained so that it can be used as a license for the underlying legal regulation.
During changing the sales order (VA02) a new check must be initiated explicitly by changing any field or from the menu
option: Extras -> Export license -> Redetermination.
The check itself runs when the document is saved. (In case the dangerous goods check is active the export control check is
carried out even if nothing is changed in the document).
The destination country is determined in standard from the country of the Ship-to party.

Result of the check

Check = OK

If a valid license is found, internally one record per item/legal regulation is written into the database table VBEX. The sales
order is available for further processing. No system status is set.
The VBEX entry can be displayed from the order. That way e.g. the assigned license number can be found, which is
otherwise not visible in the order:
Transaction VA03 -> Extras -> Export license -> Export control data
In case of a positive check result the sales order can be processed further without any restrictions.
If in the license found a maximum value is specified, the net value of the assigned order item is updated in the license master
(no quantity update takes place though – that is only in GTS available – so it makes no sense to specify a maximum quantity
in customizing).

Check = not OK
For the item the system status FTC5 (= blocked for by export control) is set.
Transaction VA03 -> Goto -> Item -> Status -> field “System status” -> FTC5
In case of a negative check result the sales order item is blocked for delivery.

Check log:
The export control log is very detailed. It can be called from the sales order’s overview screen:
Transaction VA03 -> Extras -> Export control -> Log
green light = OK
red light = not OK

The log can be opened by double click. By double click on the single lines of the log detailed information is displayed on
which data the system used for the check.
The log is not stored in database; it is newly created with the actual data by the processing of the check program each time.
If a license is to be temporarily deactivated - e.g. to obtain a negative check result for test purposes – the status can be set
temporarily to “D” (Extended) in the license master (VX02N).

How is the check carried out in the quotation?

For the quotation type QT the export control is activated in standard. Result: if a quotation item is created (with negative
result) a message is issued and the item status is set to FTC5.
The creation of a sales order for this quotation is possible. The check in the quotation is purely informative.
For the following Document types the value update is (despite active check) deactivated:
- Sales activities
- Delivery/shipping notification
- Inquiry
- Quotation
- Item proposal
- Contract
- Order w/o charge
- Delivery
- Goods movement
- Returns delivery for order
- Purchase order
The export control cannot be activated for returns.

How is the check carried out in the delivery?

Normally the export control is carried out in the sales order. The activation of an additional check in the delivery is not
mandatory, i.e. if the check in the order is negative (i.e. light in the order is red = no license) the delivery cannot be created,
regardless of whether a check is activated for it in customizing.
What is checked and how is identical with the check in the sales order. Important: during the check in the delivery the table
VBEX is not updated.
The activation of the export check exclusively for the delivery is unusual but possible via customizing. Attention! The license
master is not updated, i.e. no value update takes place in the license master.

Delivery creation (transaction VL01N):

Order red -> Delivery creation is not possible -> message BS051 -> "Create delivery" not allowed (Sys. status …,
object …)”
(regardless of whether or not the export control is active for the delivery)

Order green ->Export control for the delivery not active

> Delivery is created
->Export control for the delivery active
> new check
-> green -> delivery is created
-> red -> delivery is not created
-> message VL400: “Item & cannot be copied due to legal control”

The check result for the sales order and delivery can be completely different, especially if between the creation of the sales
order and the creation of the delivery there is a longer time span. In the meantime e.g. the master data or the customizing
settings might get changed or the validity of the license may expire.
In the delivery no status is set if the check’s result is negative (red).
In the delivery the export control is triggered with the copy routines 101/102 (-> modules FV50B101 / FV50B102).

Changing the delivery (transaction VL02N)

If the delivery is already created, this means that that the export control check was OK during the delivery creation.
If the check is active for deliveries, then the check is also carried out when the delivery is changed.
Check result:
- green -> delivery can be processed as usual
- red -> goods issue is not allowed
message VL400 is issued at goods issue: “Item & cannot be copied due to legal control”

How to release blocked sales order items?

There are two options for releasing blocked sales orders for further processing:

1. The “soft” method

Newly initiated export control check – this time with a positive result, e.g. because in the meantime a valid license is available
and the corresponding license master has been created:
Transaction VA02 -> Extras -> Export license -> Redetermination
The redetermination is carried out during the document saving. The system issues the message V1654 about this: “Export
licenses are redetermined after saving”
To see the result before saving the document the log can be checked anytime.
Redetermination is not possible in display mode.
It is not necessary to change any document field to initiate a redetermination.

2. The rigorous method

With the release transaction VX22N (Change license data) it is possible to release sales order items which have been
blocked (red light) due to missing license. For this a license number must be assigned to the blocked sales order items.

The specialty here is that for this even licenses which “do not match” can be used, i.e. ones which were defined for a different
material classification, a different customer, a different destination country, etc. Even the validity date period of the license
assigned in VX22N can be false. In such cases only warning messages are issued.
BUT not everything is accepted. There are 3 limitations:
- the legal regulation defined for the license must match,
and
- in the license master the status must be set to “C” (Accepted)
and
- if a maximum value is defined in the license master this must not be exceeded.

When a license number is assigned in VX22N, the field “Change indicator” (VBEX-MODCO) must have either value:
A = can be changed by system
or
B = cannot be changed by system.

The system has to know after all what to do if the export control for these sales order items is started again.
In case of change indicator “B” the manually assigned license number is always kept.
For not blocked sales order items (green light) a license number other than assigned internally by the system can be
assigned via VX22N.
If the material grouping and/or classification is changed a license number must also be entered, otherwise the data are not
saved.
If a sales order is blocked due to embargo or boycott, this block is irrevocable and the document cannot be released via
VX22N.
VX22N cannot be used for deliveries.

Environment
Cockpit: transaction ENGK
Important reports:
Sales orders assigned to a license: transaction VE29, program RVEXAU01
License search with specific characteristics: transaction VE30, program RVEXAU02
Blocked sales order items: transaction VE31, program RVEXAU03

User exits
User exits can be activated via customizing (transactions VE57 and VE58). The exit provides the option to deactivate the
export control check for the relevant material- and country grouping.

Database tables
Boycott list
Table KNEX boycott list of the customer
Key fields:
KUNNR customer number
LNDEX country of the boycott list

Material master: Assignment of classification and grouping

Table MAEX Legal control: Material master
Key fields:
MATNR material number
ALAND departure country
GEGRU legal regulation

License master
Table EMBK Legal control: license master
Key field:
GENNR license number

License data in the sales order item

Table VBEX Export control data for the sales order item
Key fields:
VBELN sales order number
POSNR sales order item number
GEGRU legal regulation

Status indicator in the sales order

Table JEST Object status
Key fields:

OBJNR object number

composition: C22 VBnnnnnnnnnnpppppp
VB = fix
nnnnnnnnnn = document number
pppppp = item number

STAT status
composition:
C05 I0275
I0275 = corresponds to status FTC5

Miscellaneous
If the legal control is activated and for the departure country no legal regulation is defined, the item gets blocked.
The status description FTC5 can be changed in customizing via transaction BS22. In English the status description EXLS is
often used instead of FTC5.
The cumulated sales order values are not updated in every case (field EMBK-GAUFW): for certain sales order types no
update takes place:
FORM WERTFORTSCHREIBUNG (LV52EF01).
Related Content

ERP SD Foreign Trade - Legal Control (SD-FT-CON)

ERP SD LEGAL CONTROL - Boycott (SD-FT-CON)
ERP SD LEGAL CONTROL - Embargo (SD-FT-CON)

legal exportkontrolle genehmigung gesetzliche

kontrolle boykott embargo
genehmigungsprüfung genehmigungspflichtig

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