ECC Foreign Trade vs.sap GTS

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

SD Foreign Trade vs. SAP Global Trade Services (GTS) Since the business structures are becoming more complex and markets becoming more global nowadays the necessity of handling foreign trade of a business is rapidly gaining importance. SAP Foreign Trade and/or SAP Global Trade Services (GTS) provides the tools you need to compete effectively in today’s market. This enables you to: 1) Manage import and export processes, integrating them effectively into the Supply Chain. 2) Automatically identify licensing requirements for importing and exporting goods based on current regulations. 3) Simplify reporting with automatic procedures for creating, printing and submitting declarations to the customs authorities. 4) Determine which of your products qualify for Preference handling. 5) Provide an active interface for sending data via internationally available EDI systems and other electronic media. 6) Update or change data in all relevant foreign trade documents at any time prior to the final goods issue. Foreign Trade in ECC and SAP Global Trade Services (GTS) components are tightly integrated with Materials Management (MM) for handling Imports and Sales and Distribution (SD) for managing Exports. In the area of documentary payments it is also integrated closely with the Financial Accounting application.

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

The following figure illustrates where these components are integrated with ECC.

The functionalities of Foreign Trade with ECC and SAP Global Trade Services (GTS) are shown in the table below: GTS

Foreign Trade SD in ECC

•

Sanctioned Party List Screening (SPL/DPL)

•

Embargo checking

•

License determination

•

Export/Import declaration creation and electronic filing

Legal control (license) – manual process

Manually creating declarations Printing

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

•

Product classification

•

Preference determination

•

Letter of credit processing

•

Restitution handling

•

Electronic Compliance Reporting

Sanctioned Party List Screening (SPL/DPL) Comparison: GTS

Foreign Trade SD in ECC

SPL screening available and the process is automatic

No SPL screening available in ECC standard functionality (Should use GTS or 3rd Party Tools)

No transfer required as GTS is tightly integrated with ECC

Should transfer ECC documents to 3rd Party tools for denied parties

Cost of ownership with SAP as everything takes place in SAP. This saves a lot of cost.

Cost of ownership not with SAP

With SAP Global Trade Services (GTS) it is possible to check one time Vendors, Customers and address changes of documents automatically when screening of PO’s and SO’s is done where as this functionality is not available in core ECC. The master data for SPL screening is maintained in the SAP GTS system as XML whereas there is no provision to maintain the same in ECC. Document blocking, releasing and monitoring due to SPL screening is effectively done through SAP GTS whereas this is very complex with ECC. Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

SPL in SAP GTS Checking against business partners done in the following methods: 1. Synchronous screening - GTS screens your business partners automatically once you have created SO/PO’s 2. Asynchronous screening – If there are large number of vendors/customers then screening can be done at background Embargo with FT vs. GTS •

Embargo checking in ECC is not automatic. Manual checking done by a lot of companies. GTS ensures process automation for embargo checking.

License Determination Comparison GTS

Foreign Trade SD in ECC

Tracking, assigning and license determination for a product very efficient.

Very complex process of creating and assigning licenses. ECC will not determine what license types are required for the product

You can assign licenses manually or automatically through GTS

Automatically not possible with ECC standard functionality

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

The process of assigning licenses to orders with Foreign Trade in ECC is shown in the figure below:

With SAP GTS you not only assign licenses but you can also check the status of the licenses and other aspects like the values, foreign trade organization that is involved, product classification, country of dept/dest, business partner details etc as shown in the figure below.

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

This makes GTS more appropriate for License determination than the Foreign Trade with ECC for export processes as the former ensures automation and is very simple to use.

SAP GTS also shows the license for a order in a customs documents as shown in the figure below which is not possible with Foreign Trade in ECC.

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

Import/Export Declaration Comparison: GTS Automatically documents

Foreign Trade SD in ECC created

from

ECC

Manual creation of declarations

Declaration creation and electronic filing very efficient with GTS. Lot of time is saved as there is no manual intervention

Post declaration creation you have to print the declarations and use brokers for filing in ECC. Lot of time is consumed for the process

Save the huge amount of fees by getting rid of brokers and filing yourself

Pay hefty fees in filing with customs through brokers for both export and import through ECC

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979

Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC

Benefits of SAP GTS 1) 2) 3) 4) 5) 6) 7)

Ensure vigilant compliance with trade regulations Mitigate risks of huge fines and penalties Avoid costly shipment delays at borders and customs Quick implementation Lower IT maintenance costs Faster Communication with customs Lot of return of investment

Confidentiality: No Part of this document can be reproduced/circulated in any form without the written permission of Value Consulting

Suite 110, Pipeline Plaza Ashburn, VA 21064, USA

www.valconusa.com Consulting to deliver value

Tel: 703-723-3900/0100/9979