GLOBAL TRADE SERVICES - SAP

Topics to be covered part of SAP GTS Demo

 Trends and Challenges in Global Trade
 Business Benefits of SAP GTS
 How SAP GTS be different from SAP-FT
 Evolution of SAP GTS
 Overview of GTS
 SAP GTS System Landscape
 Integration of SAP R/3 and GTS
 Basics of Master Data – SAP GTS
 Business Benefits of SAP GTS
• Reduce Risks of Noncompliance
To keep Business exports in line with statutory regulations, SAP GRC Global Trade
Services lets Business screen business partners against official sanctioned- party lists
• Easily Classify Products
With SAP GRC Global Trade Services, Business can automate and streamline
product classification
• Meet Complex Documentation Requirements
With SAP GRC Global Trade Services, Business can identify all documents needed for a
specific transaction, including those required by the EAR and by government agencies such as
the U.S. Department of State
• Handle Electronic Communication
SAP GRC Global Trade Services delivers the AES-certified functionality needed by Business
• Make the Most of International Agreements
With SAP GRC Global Trade Services, Business can effectively handle trade-preference
processing within the scope of free trade agreements of the Americas, such as NAFTA (North
American Free Trade Agreement )
• Mitigate Financial Risk
SAP GRC Global Trade Services also provides support for commonly used types of international
payment (such as letters of credit), helping make sure invoices are paid. facilitate global trade in
meeting all the complexities
• Automates global trade process to communicate with Customs authorities
• Helps to avoid from costly delays & hefty penalties in import and export process
 How SAP GTS be different from SAP-FT

• In SAP - Foreign Trade is an inbuilt functionality but it has limited advantages compared with
GTS system.

• 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.
 Evolution of SAP GTS
After September 11, 2011 incident
SAP GTS 1.0
SAP GTS 2.0
SAP GTS 3.0
SAP GTS 7.0
SAP GTS 7.1
SAP GTS 7.2
SAP Business Objects 8.0
SAP GTS 10.1 ( Latest Version )
 Overview of SAP GTS
• SAP GLOBAL TRADE SERVICES

• GTS stands for Global Trade Services and is a standalone SAP application that replaces the
existing foreign trade functionality in R/3 SAP. To conduct business in other countries, Business
must comply with local laws, meet documentation requirements and understand complicated
tariffs and duties. Failure to do so can be costly so and GTS helps automate these processes to
ensure compliances.
• In today’s global markets, outbound shipments have to clear customs fast. That means ensuring
that products are correctly classified and have the required complete and accurate documentation.
Plus there’s the challenge of mandatory electronic filing via the Automated Export System (AES)
directly to U.S. Customs.
• Also, with the spread of global terrorism, export processes are subject to closer scrutiny than ever
before. For business with partners overseas, it’s essential to ensure that they’re dealing with the
right people, countries, and products. Business has to identify restrictions on specific items,
countries of destination, and business partners, and there are host of regulations to comply with –
and severe penalties for noncompliance.
• In addition, to survive in today’s fiercely contested global markets, Business cannot afford to pass
up the opportunities offered by trade preference agreements such as the North American Free
Trade Agreement (NAFTA). To do so, Business needs to provide detailed certification of the origin of
their goods to their overseas customers.
SAP Global Trade Services
Sub-Modules of SAP GTS
SAP GTS – Compliance Management
 Compliance management

• 1. Sanctioned Party List Screening ( SPL or DPL )

SPL helps business to comply with gov laws that prohibits dealing with parties (individual and organization) which
are sanctioned by gov agencies.
The detail we get from gov agencies and time to time there is addition and deletion to the same and same is
uploaded to GTS
• SPL allows screening of all customer, vendor. When ever order or delivery gets created in feeder system they goes
to GTS and their partner are screened against the already uploaded DPL denied party list we also call it DPl.If a
partner is one from the DPL the order get blocked for further processing. This screening can be synchronous or
asynchronous. Synchronous means in real time means as soon as the order is created it goes to GTS and get
screened for any we can do the screening at later time.
• 2. Embargo check:
• This functionality helps in complying with the restriction to doing business with certain Countries. Gov agencies
and united nation can prohibit doing business with certain countries.
• 3. License determination:
• For many products valid license is required for export and import process, so the determination of valid license
either for export or Import is taken care by this module. In license determination for export departure company
comes into picture and for import destination country come into picture/
• This module allows maintaining the valid licenses and if while in the process of license determination the license
in missing for a product it puts the sales order on the block.
 Custom Management
Custom mgmt has got following sub-modules:
 Custom Management
Custom mgmt has got following sub-modules
• 1. Product classification:
This functionality facilitates the assignments of certain codes to products such As commodity codes: this helps in
identifying the product by the custom authority on the declaration. Tariff codes for calculation duties. Export
control classification number for license determination
These codes can be maintained manually or can be uploaded by third party vendor.
• 2. Transit Process
This drives the transit business process, gives the provision of e communication with custom system such as NCTS
(European Union New computerized transit system.)Transit is a facility available to operators that allows the
movement of goods across international borders under customs control while ensuring that any charges due on
those goods in their country of destination are secured
• 3. Custom processing:
This module assists in making declaration of exports and imports to customs
An authority using electronic message and calculation of customs duties on imports one example is SED shipper
export declaration which is required:
When a shipment is over $2,500 when an export license is required any shipment going to an embargoed country.
• 4. Trade service processing:
Takes care of printing documents required for custom clearance. like shipper letter of instruction , Commercial
invoice ,We can configure system for different message which can give us desired print , we can have smart form ,
PDF .Once Billing document comes to GTS it creates custom shipment document in GTS where we can have our
configured messages of different prints.
 Risk Management

It is the module that enables the trade process that deal with the financial risk to the company

• 1. Preference processing
Gives the flexibility to put duty as per different preference. As for EU and NAFTA countries product
if it contains higher local contents the duties on such product is less. This requires up to date
maintenance of declaration from the suppliers to find out the local contents. System allows
Supplier declaration on the system, Preference calculation rules from data providers Notification to
supplier to update their declaration Detail log to determine the origin of product.

• 2. Letter of credit
Provides support for commonly used types of international payment A letter of credit is a
document typically issued by a bank or financial institution, which authorizes the recipient of the
letter (the "customer" of the bank) to draw amounts of money up to a specified total
• 3. Restitution
Enables business to seek refunds from gov authorities for exports that qualifies for subsidies
especially relevant for agricultural products from EU to non EU countries Allows to calculate
refunds on export department, Allows to file refunds.
 Electronic Compliance Reporting

• SAP Electronic Compliance Reporting (SAP

ECR) helps to record the necessary statistics
data from a declaration period in Intrastat
declarations for the following transactions:
• Shipments that your company receives from
other member states of the European Union
• Shipments that your company sends to other
member states in the European Union
Integration of SAP R/3 and GTS
Basics of GTS – Data Flow
SAP GTS – Master Data
 Data Exchange Between SAP ERP and SAP GTS
This is the basic GTS architecture how it talk to Feeder System , all the master data like Material , customer
vendor and all the transaction data like sales order delivery billing doc get pushed to GTS through RFC Call.
And any message back to Feeder system flows through RFC call.
 Thank You

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