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Product Compliance in SAP S/4HANA Cloud 2002

This blog provides you with the latest and greatest innovations that our SAP S/4HANA Cloud 2002 release has in store for you in Product Compliance. To name just a few highlights:

  • Legal deviations for material-based composition
  • Integration of product compliance into sales contract management
  • Enhancements in dangerous goods classification for ADR
  • Comparison of compliance requirement versions
  • Analysis of marketability assessments
  • Compliant hazard communication for products through subsequent SDS shipment
  • Manage Compliance Requirements and Compliance Requirement Tasks in Environment Management
  • and more.

In detail, this blog covers the following highlights:

  • Integration of product compliance into sales contract management
  • Analysis of marketability assessments
  • Enhancements in dangerous goods classification for ADR

Introduction

Product compliance is important for various industries. Companies must adhere to regulations and global industry and company standards to be able to produce or sell a product in a country/region or transport it through various countries.

A product steward and regional experts must assess the compliance of products, often starting in the development phase of a product. They have to decide if a product can be sold or produced in or shipped through countries/regions for specific applications. They also specify if a safety data sheet is needed in certain countries or regions and in which languages the safety data sheet has to be provided.

Dangerous good experts classify products according to the applicable dangerous goods regulations. They also specify which regulations are applicable for certain counties and specific modes of transports and how dangerous goods data is processed checks in sales and delivery documents.

Product Compliance

Integration of Product Compliance into Sales Contract

Contract Management is becoming more and more tangled with the Sales process. For Sales, contract management is used to automate and enable faster, more accurate production and delivery of legal-approved contracts to a company’s prospects or customers. This way, sales can focus on customer relationship management, communications, and revenue production.

The integration of compliance information into sales and delivery means the following: Only those materials that are marked in the material master as valid for compliance checks are considered.

For compliance-relevant materials, compliance checks run in sales and delivery documents. Depending on the kind of documents, the system issues warnings or blocks items or entire documents.

Sales representatives can request a compliance status for a material when they want to sell it in a country/region where no current compliance assessment for the material exists.

With this 2002 release, we have established a way to view the status of compliance checks of product marketability, dangerous goods, and safety data sheets in sales contracts. This prevents executions of non-compliant sales orders for all relevant products and therefore assures compliant transport regarding dangerous goods regulations.

In other words, SAP S/4HANA Cloud now allows you to create a sales contract that contains compliance-relevant materials and the system carries out compliance checks that verify the following:

  • Is the product marketable in certain countries?
  • Are all safety data sheets available in the required languages?
  • Is the transport of this product allowed?

The results of these compliance checks are displayed as statuses in the sales contract.

Figure 1: ‘Integration of Product Compliance into Sales Contract’ enables users to gain insights for example into dangerous goods information on sales contract documents and prevents execution of non-compliant sales orders

 Process

If a product has been marked as relevant for compliance in the product master, the system checks marketability data in real-time as an internal sales representative is creating or editing a sales document and determines item and header status as described below.

Determination of the Item Status

  • The system determines the status of an item in a sales document as follows:
  • If the item is not compliance relevant, the system allows further processing of the item.
  • If the item is approved or approved as an exemption, the system allows further processing of the item.
  • If the item is not approved as an exemption, not marketable, or has a decision pending, the item is blocked.

Product Compliance

Analysis of marketability assessments

Whit this second key innovation for the SAP S/4HANA Cloud 2002 release you can get an overview of marketability assessments for products and quickly check their compliance status. You can easily identify marketability assessments that need further processing.

Figure 2: YouTube: Integration of product compliance into the sales process
(note: no audio voice available)

The basis and foundation for the marketability is the management of compliance requirements. With the SAP S/4HANA 2002 release, we have enlarged the regulatory content. The update provides 4 new and 34 updated compliance requirements for product marketability, 1 new compliance requirement for dangerous goods management, and 13 new compliance requirements for safety data sheet management. You can find these compliance requirements in the Activate Compliance Requirements app for each solution area. In this SAP Fiori app, we include also a new feature and now you can compare a new or updated compliance requirement version with an existing version.

Figure 3: Updated content and new features for the foundation of marketability

In the ongoing process, we have the product level and you have to manage the basic compliance data with the composition maintenance. If your data are released, the system calculates the marketability. To help the product stewardship specialist getting a big picture regarding the marketability assessments around the entire product portfolio, we released the new SAP Fiori app – Analysis Marketability Assessments.

Figure 4: Powerful reports and analytics provide visibility into the compliance of individual products, raw materials, and the whole product portfolio, and enable everyone in the company to retrieve compliance information easily.

 This new app helps to answer or serve requests from external departments, for example, production, about:

  • What is the marketability status for our products per industry type and product group (product master attributes)?
  • I am responsible for industrial chemicals and need to have an overview of all products that we want to place on the North American market
  • How to keep track of the list of products I am responsible for?
  • Have we applied exemptions for our products? Some of them will expire.
  • Auditing – How was the marketability status of our products for a given key date?
  • Regulation change. How to deal with it and does it have an impact?

Key Features are:

  • View marketability assessments and their related attributes based on a set of filter criteria.
  • Filter marketability assessments by attributes of the material master and compliance requirements.
  • Use the compact filter to explore additional search options.
  • Select values in the interactive filter charts in the header area to adapt search results in the content area.
  • Select how your search results are displayed in the content area: as a table, chart, or both.
  • Select the chart types that best visualize your information requirements.
  • Export the data matching your filter selection to a spreadsheet.
  • Save your filter settings as a view variant to easily apply them the next time you use the app.
  • Select an item from the table to navigate to its view in the respective Marketability Assessment

This app is built using Analytical List Page technology. It uses the following CDS views:

  • I_ProdMktCmplRqRsltText
  • I_ProdMktCmplRqRsltCube
  • C_ProdMktCmplRqRsltQuery
  • C_ProdMktCmplRqRsltQuery

Note 1: For more information about the Analytical List Page technology, see Analytical List Page.

Note 2: The Assess Compliance Requirements apps have been renamed to Assess Marketability Requirements, and the Compliance Assessment apps have been renamed to Marketability Assessment. In these apps, Compliance Status has been renamed to Marketability Status. This renaming helps to differentiate between the apps that are relevant for Product Marketability and the apps that are relevant for the other solution areas of Product

 

Enhancements in dangerous goods classification for ADR

Whenever a company produces, sells, or transports a product, the company has to ensure that the product meets all regulations: laws, industry standards, and company standards.

With Dangerous Goods Management, you can assess unpackaged and packaged dangerous goods, classify them according to dangerous goods regulations, and decide whether transportation of a product is allowed, allowed with restrictions, or forbidden.

Dangerous Goods Management also provides classification data for checks in sales and delivery processes for transport permissions on the dangerous goods involved. If the transport of dangerous goods by a particular mode of transport is forbidden in a specific country, the transport must be prevented. If transport is possible only under certain restrictions, a warning appears. If transport is forbidden, or the dangerous goods classification has not yet been assessed, the sales and delivery documents are blocked.

Now with the SAP S/4HANA Cloud 2002 release, and as part of the SAP content for Dangerous Goods Management, a new content-based compliance requirement for ADR is delivered. This compliance requirement contains detailed classification data for a UN number, such as packing group, proper shipping name, special provisions, and information about allowed quantities if you want to use exemptions.

When classifying an unpackaged product using this content-based compliance requirement, you only select the applicable data set for the UN number and the other provided classification data is filled automatically into the corresponding fields in the Classify Dangerous Good According to ADR – Unpackaged Product app.

With this feature, you can also print dangerous goods data on sales contracts.

Figure 5: Generation of dangerous goods basic description in the required languages

Note 3: ADR, formally the European Agreement of 30 September 1957 concerning the International Carriage of Dangerous Goods by Road, is a 1957 United Nations treaty that governs transnational transport of hazardous materials. “ADR” is derived from the French name for the treaty: Accord européen relatif au transport international des marchandises Dangereuses par Route). From 1 January 2021, the treaty will be renamed Agreement concerning the International Carriage of Dangerous Goods by Road as the term “European” in the incorrectly may give the impression that the treaty is only open for accession to European states.

Outlook (see roadmap for SAP S/4HANA Cloud)

In future versions of SAP S/4HANA Cloud, we will improve and increase the product compliance part efficiency with new options:

  • Product compliance (common): Improved maintenance for analytical & legal composition
  • Product marketability: Extended background event processing
  • Dangerous goods management: Content-based DG classification for IMDG and 49 CFR (Unpackaged Product)
  • Safety data sheet management: Enhancement of data model for first aid data and physical-chemical data

 

For more information on SAP S/4HANA Cloud, check out the following links:

Follow us via @SAP and #S4HANA, or myself via @ChristianVogler and LinkedIn

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