SAP S/4HANA for International Trade

[chelliah_soundar]

Updated on March 1, 2022

S/4HANA for International Trade is a solution available in SAP S/4HANA. Before I go any further, I would like to explain briefly and provide some context as to what has traditionally been offered in SAP ERP. SAP offers a foreign trade solution within SAP ERP to handle the foreign trade requirements of a business. This Foreign Trade application component is integrated with Materials Management for handling imports and with Sales and Distribution for exports. It is also integrated closely with the Financial Accounting application for payments.

The foreign trade functionality in SAP ERP includes the following areas:

• Intrastat


• Preference Handling


• Documentary Payment (e.g. letter of credit)


• Export Compliance

The Foreign Trade functionalities from SAP ERP described above (components MM-FT and SD-FT) are not available in SAP S/4HANA. But, this foreign trade functionality is replaced by “SAP S/4HANA for International Trade” in S/4HANA to meet the business requirement.

S/4HANA International Trade supports the following areas as of S/4HANA 2021 FPS00 release.

International Trade Classification

• Classification of products with commodity codes and Intrastat service codes.


• Classification of products with control classes and control groups for legal control.


• Classification of products with customs tariff numbers.


• Classification of products with customs tariff numbers for end-uses.


• Retransfer of commodity codes from SAP GTS to SAP S/4HANA.

International Trade Compliance

• Legal Control
  
  
  
  • Control of legal regulations for import and export.
  
  
  • Managing of licenses in accordance with legal control for import and export processes.
  
  
  • Managing and release of blocked legal control documents.
  
  
  • Managing countries/regions under embargo.
  
  
  
  


• Embargo
  
  
  
  • Manage countries under embargo
  
  
  • Manage documents
  
  
  • Release of blocked documents
  
  
  
  

Intrastat

• Managing Intrastat declarations and their master data.

Integration with SAP Global Trade Services

• Integration with SAP Global Trade Services lets you use SAP GTS functionality in your processes.

Integration with SAP Watch List Screening

• Integration with SAP Watch List Screening lets you check business partners in transactional documents.

 

Migration of Foreign Trade in SAP ERP to SAP S/4HANA International Trade

After completion of the technical conversion of ERP to S/4HANA, the following activities need to be performed.

To migrate financial documents in Foreign Trade in SAP ERP system to Trade Finance in S/4HANA, the following migration steps available as customizing activities should be carried out.

1. Preparations for Migration of Financial Documents to Trade Finance

SPRO -> Conversion of Accounting to SAP S/4HANA -> Preparations and Migration of Customizing -> Preparations for Migration of Financial Documents to Trade Finance

• Set Migration Need


• Map SD-FT Financial Document Types with TRM 850 Product Types


• Map SD-FT Presented Document with TRM TF Document Types


• Set Bank Function for Advising Bank


• Map SD-FT Banks with Business Partners


• Map Company Codes in SD-FT and Trade Finance


• Check Customizing Settings

2. Migration of Financial Documents to Trade Finance

SPRO -> Conversion of Accounting to SAP S/4HANA -> Data Migration -> Migration of Financial Documents to Trade Finance

• Migrate Master Data of Financial Documents


• Display Migration Status of Master Data of Financial Documents


• Assign Sales Orders to Trade Finance Transactions


• Display Status of Assignments of Sales Orders to Trade Finance Transactions


• Initialize Risk Check Decisions


• Display Status of Initialization of Risk Check Decisions


• Reconcile Risk Check Decisions

3. Set Migration to Completed

SPRO -> Conversion of Accounting to SAP S/4HANA -> Data Migration -> Complete Migration of Financial Documents to Trade Finance -> Set Migration to Completed

4. Complete Migration of Financial Documents for Unmigrated Data

SPRO -> Conversion of Accounting to SAP S/4HANA -> Activities after Migration -> Manual Activities for Trade Finance -> Complete Migration of Financial Documents for Unmigrated Data



SAP Global Trade Services (GTS)

SAP GTS is another solution offered by SAP to manage global trade operations, ensure ongoing trade compliance, and optimize the cross-border supply chain. This solution delivers automation and comprehensive functionality to speed trade functions and maximize performance.

SAP Global Trade Services will continue to deliver ongoing innovations and will remain SAP’s most comprehensive global trade management solution.

If you are using SAP GTS alongside SAP ERP system, it is possible to convert your ERP system to S/4HANA and continue to use GTS as a side by side deployment. The tight integration between SAP ERP and SAP GTS will continue to apply to S/4HANA as well. For multiple ERP systems, SAP GTS will continue to be the core solution for customs and foreign trade. In this scenario, the logistics data can be pulled from multiple ERP systems to the central GTS system.

Deployment options of GTS

Installation of SAP GTS 10.0/10.1/11.0 on a separate system alongside S/4HANA as a side by side installation is possible. In this scenario, a separate GTS Plug-In is no longer required in S/4HANA. The respective functionality is part of S/4HANA beginning with the 1511 shipment.

Installation of SAP GTS 10.0/10.1/11.0 on the same system with S/4HANA (Integrated Installation) is not supported.

If you have installed GTS (software component SLL-LEG) as an add-on on an SAP ERP system, you cannot convert the SAP ERP system to S/4HANA without de-installing the add-on GTS from the SAP ERP system. Also, there is no add-on GTS for S/4HANA. In this case, the add-on GTS needs to be de-installed prior to the conversion of ERP system to S/4HANA. For more information on this, please see SAP Note 2356692 - Uninstalling Global Trade Services.

For questions, please check these helpful links:

• See all questions and answers about SAP S/4HANA 


• Ask a Question about SAP S/4HANA


• Follow SAP S/4HANA for more blogs and updates


• Visit the community topic pages for SAP S/4HANA

I hope this blog post was helpful for you. If so, click on “like” or “share”. I’m looking forward to your feedback and thoughts.

Thank you.

Brought to you by the SAP S/4HANA RIG and Customer Care team.