SAP S/4HANA for International Trade
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:
- 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.
- Manage countries under embargo
- Manage documents
- Release of blocked documents
- 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.
- 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
- 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
- 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
- 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.
Brought to you by the SAP S/4HANA RIG and Customer Care team.
I’m very glad to find the great article which explain the foreign trade functionalities for S/4 HANA.
I want to know is there any prerequisite to use International trade in S/4 HANA. We can use some International trace functions immediately after the installation of S/4 HANA1809 FPS00 but the SAP note 2576322 describes we need to implement best practice to the SAP clients to use this function.
The best practice document provides the instructions to set up the solution. Please download and review the documents from the links provided in the SAP Note you have referenced in your question. Regards,
Can we integrate Kewill (GTS solution offered BluJay Solutions) with S/4 HANA On-Premise?
Please check the link below for certified 3rd party solutions.
If you do not find the solution you are looking for, please contact your 3rd party solution provider directly.
Thanks for sharing. 🙂
Thanks for the details in this blog.
We are planning to use SAP SRM along with S/4 HANA.
Can you please share some insights how the INTRASTAT functionality should be used?
The challenge is observed due to removal of Import tabs in PO in S/4 HANA
Thanks for the great blog. When I try to open the note. I get following error message
"You are not entitled to access SAP Note/KBA 2356692"
All others notes are working fine
Thanks for your help
Thanks a lot for sharing information on this blog.
Do you know if Preference Handling and Documentary Payment are part of S/4 International Trade ?
If not, do you know if SAP plans to add these features in a future release ?
Preference Handling seems to be part of SAP GTS but not Documentary Payment...
Hi Chelliah Soundar and All
My client using the GTS 7.1 Version, now they want to integrate with S4 HANA 1909, it is possible as we are Migrating to HANA from ECC, Could you please let me know how to do that or it is not possible. Do we need to upgrade the GTS 7.1 to another Version. Request you to please help.
SAP GTS 7.1 is out of maintenance and needs to be upgraded.
We use Sanctioned Party screening , Material / classifications / Embargo from GTS today. Is it possible to move all our functionality into S/4 HANA and not use GTS? Looks like from discussion chain above that for we will still have to use SAP Watch list screening with GTS. Can you please confirm?
Other thing I see in in help.sap.com that there might be some integration in S/4 HANA directly without GTS with SAP Watch list screening. But we will have to pay to SAP 17k USD for SAP Watch list screening and to third party for content provider.
Integration with SAP Watch List Screening - SAP Help Portal
Customer needs to acknowledge it has signed a separate agreement with content provider Mendel Verlag, www.mendel-verlag.de, as a prerequisite before licensing and using SAP® Watch List Screening application to enable sanctioned-party lists. Contact your SAP Account Executive if you have any questions.
Thank you for your post. Would it be possible to indicate in the Blog that there are no transaction codes available for some of the functions with S/4 HANA international trade and it is mandated to use Fiori Apps ? Also, would be great if we can list the Fiori App ID's required for supporting S4 HANA international trade.
What will be the Best Approach for Intrastat and extrastat reporting in SAP S4HANA SAP Foriegn trade module /Global trade Management /Global trade system ?