Learn about functionality that enhances the transactions and document processing of export and import compliance and declarations. Understand the new plug-in that allows you to manage an SAP BusinessObjects Global Trade Services-specific implementation or upgrade independent of other functions or modules. In addition, see how to perform shipment consolidation for better management and cost savings.
Key Concept
Within the SAP system, key functions and activities are registered as documents — for example, a sales order for acknowledging the sales contract between a company and a customer or a purchase order contract for goods or services between a company and a vendor. Documents are key in performing compliance checks from trade services for routes, hazardous substance checks, or inbound delivery import compliance checks.
SAP BusinessObjects Global Trade Services version 8.0 features enhancements with transactional processing. Some of the key features and functionalities include:
Note
Although I discuss SAP BusinessObjects Global Trade Services 8.0, the information in this article also applies to SAP BusinessObjects Global Trade Services 7.2.
Export Compliance Check on Outbound Sales Transactions Based on Routes
Following a compliance check and clearance, the system grants permission for the creation of a declaration document, which is generated from the billing document. The recommended document type is the pro forma billing type because the export compliance check might involve more than just checking against the departure country and the destination country. The shipment might pass through a third country before it finally reaches its destination. For example, a shipment sent to Germany might first land in Belgium, then move to France, and from France reach Germany. With SAP BusinessObjects Global Trade Services 8.0, you can perform export compliance checks based on the route the shipment takes. If the route includes an embargoed country, you might have to use a different route for the shipment. In some cases, it might be allowed with the appropriate license.
You can achieve legal control (license determination) by setting up route determination and turning on the indicator for it within the SAP ERP Reference IMG > Sales and Distribution > SAP Global Trade Services – Plug-In > Configure Control Settings for Document Transfer. Select the Application Level (SD0A) and click Document Types. Within the document type transfer configuration, select Legal Control – Determine Transited Countries under Detail Control (Figure 1).
Figure 1
Export compliance service check based on route activation
In Figure 1, the document type Call up SAP Compliance Management Services is checked. This enables a compliance check on the logistics transaction or document type (OR – Standard Order). If you select the Check Configurable Materials check box under Detail Control, the system performs a route check.
New Plug-In
An enhanced plug-in allows you to update your system for regulatory or trade process changes with minimal effect on the logistics system. Prior to SAP BusinessObjects Global Trade Services 8.0, you had to install a plug-in and upgrade your SAP ERP system to make changes. This meant that the business had to plan on testing all its logistics processes that could have an effect on the SAP ERP system.
With SAP BusinessObjects Global Trade Services 8.0 plug-ins, you can upgrade the plug-in without affecting other system plug-ins. You can manage any SAP BusinessObjects Global Trade Services upgrades and implementations independent of other functions and modules within the SAP ERP system (Figure 2). The technical component is the legal and logistics plug-in (SLL-PI). The advantage with this new plug-in is that you can upgrade the SAP BusinessObjects Global Trade Services plug-in independent of the central plug-in and without having to upgrade the SAP ERP system.
Figure 2
New plug-in with SAP BusinessObjects Global Trade Services 8.0
New Plug-In
Typically, goods leaving for the same geographic locations are consolidated into one commercial document or customs declaration document. This helps companies save costs because they don’t have to manage or track them separately. Pro forma documents, which are created against the delivery document, trigger customs documents in SAP BusinessObjects Global Trade Services for generating the trade declaration documents.
In SAP ERP, a shipment document is used for consolidating deliveries. Previously with a consolidated shipment, you needed to manage the tracking of the consolidation or have the freight forwarder manage the customs declaration on your behalf. With pro forma consolidation prior to the SAP BusinessObjects Global Trade Services 8.0, customers used the billing due list (transaction VF04).
The billing due list referred the deliveries for consolidation. Once the shipment was created, the delivery documents had to be manually entered to the billing due list to generate the consolidated pro forma. With the new functionality in SAP BusinessObjects Global Trade Services 8.0, you simply enter the shipment number. This shipment number has all the deliveries associated with it, helping you avoid any duplicate manual effort and error.
Figure 3 shows the selection screen for creating a consolidated pro forma based on the billing document, outbound delivery, shipment number, or load. In this example, the shipment consolidation transaction pulls the deliveries associated with the shipment and generates the consolidated pro forma.
Figure 3
Consolidation of the pro forma
Hazardous Substance Check
If your company deals with hazardous substances or dangerous goods, you have to capture the information and manage it within your logistics process while maintaining trade and declaration compliance. You must screen your transactions for any hazardous substance check. As with outbound deliveries, the inbound deliveries are required to go through compliance checks, Denied Party List changes, or license requirements.
As part of the compliance check, you are required to manage the logistics of the hazardous substances, as well as track and perform compliance checks. If the document is blocked due to an environmental, health, and safety check, the document can be released following the review. For example, some countries have a ban on bringing hazardous materials into the country or require hazardous materials to be packed and reported separately. Figures 4 and 5 show the hazardous service check SAP BusinessObjects Global Trade Services 8.0 performs.
Figure 4
Hazardous service check menu
Figure 5
Hazardous service check
You can also identify dangerous goods within the customs declarations documents. Figure 6 shows the Dangerous Goods indicator and Dangerous Goods No. field under the Special Information section.
Figure 6
Customs document item details with check box for Dangerous Goods and Dangerous Goods No. entry
Inbound Deliveries Compliance Check
SAP BusinessObjects Global Trade Services 8.0 allows you to perform an Import Compliance Check service for inbound deliveries. Figure 7 shows the service call activation within the SAP ERP plug-in. In the Document Types folder under the Application Level (MM0B), list the SAP ERP Central Component (SAP ECC) document type DIG (Inb.Deliv.Gds Mvmnt). Under the Control Settings for Services, select the Call up SAP Compliance Management Services check box for a compliance service check.
Figure 7
Import compliance service check with inbound deliveries
Rajen Iyer
Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.
You may contact the author at Rajen@kryptinc.com.
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