Product Compliance in SAP S/4HANA Cloud 2202
Product marketability and compliance involve verifying that products and materials comply with various regulations to secure the right to market, sell, and ship products. With this new release, we continue our journey to increase this key differentiator, and this blog provides an overview of innovations delivered with the SAP S/4HANA Cloud 2202 for Product Compliance.
To name just a few highlights:
- Regulatory content update
- Integrated sales order check for ship-to customer compliance
- Use of National Fire Protection Association ratings for safety data sheets
- Enhanced shipment and monitoring of safety data sheets
- New SAP Fiori app to manage poison center notifications
- … and more.
In case you do not need all the information below and just briefly want to get an overview of the release highlights, please watch this video from Syed Talal Hussain, with the key innovations:
Release video: SAP S/4HANA Cloud 2202 for Product Compliance, EHS and Sustainability: Top key innovations.
Compliance Data Foundation:
Regulatory content update
Companies are facing complex and specific regulations in the market. With the ability to validate regulatory compliance early in the product development cycle, you avoid the risk of having to rework formulations containing banned or restricted substances or, worse, recall products if they do not meet regulatory obligations. or customers’ requirements.
SAP delivers new and updated compliance requirements for Product Marketability, Safety Data Sheet Management, and Dangerous Goods Management, which you can use in your product compliance processes. You can view all SAP-delivered compliance requirements using the Manage Compliance Requirements apps. To use the compliance requirements in your product compliance processes, you have to activate the ones that are relevant for your own business and deactivate the ones that are not relevant using the Activate Compliance Requirements app. After activating a compliance requirement, you want to use, you have to assign it to at least one compliance purpose using the Manage Compliance Purposes app.
With the update and enhancement of the integrated regulatory content, you stay compliant with your product portfolio using the most recent regulatory updates. With the SAP S/4HANA Cloud 2202 release, SAP provides the following new and updated compliance requirements in the following solution areas:
In total 207 compliance requirements for product marketability embedded
- 139 Substance List Checks (SLC)
- 67 Simple Compliance Documentation
- 1 Poison Centre Notification
With SAP S/4HANA Cloud 2202 delivered:
- +1 Substance List Check: JP PDSCL Status (Jun 2020)
- 20 updated compliance requirements (SLC)
- 18 new compliance requirement versions (SLC)
- +1 EU Poison Centre Notification (Nov 2020)
Dangerous Goods Management
In total 14 compliance requirements for dangerous goods management are embedded:
- 49 CFR, ADG, AND, ADR, ANTT, IATA-DGR, IMDG Code,
- NCh382, NOM, NZS 5433, RID, SANS 10228,
- TDG, UNRTDG
With SAP S/4HANA Cloud 2202 delivered:
- 5 updates of existing (IMDG-Code, IATA-DGR, ADR,
- ADN and RID extended with enclosure specific data
- 1 new compliance requirement version (NCh382 2021)
Safety Data Sheet Management
In total, the embedding of 102 compliance requirements for safety data sheet management
With this release delivered:
- 48 new compliance requirements (MK, AL, AE, BB, BD, BH, BY, CG, BO, DM, DO, DZ, EC, GT, HK, HN, IN, JM, KW, KZ, EG, JO, KE, LB, LK, MA, MU, NG, NI, NP, OM, PA, PE, PH, PK, PR, PY, QA, SA, SV, TN, TT, TZ, UA, UY, VE, VN, and ZA)
- Two updated compliance requirements (GB and XI)
Demo 1: With the update and enhancement of the integrated regulatory content, you stay compliant with your product portfolio using the most recent regulatory updates (including audio).
Just as a reminder on what you will have embedded in total with this new SAP S/4HANA Cloud 2202 release:
- 207 Compliance requirements in product marketability
- 14 Compliance requirements for dangerous goods management
- 102 Compliance requirements for safety data sheet management
- 92 Compliance requirements for occupational exposure limits
The content is also not limited to regulatory content, but also about
- 787 Embedded regulatory graphics
- 5.563 Embedded regulatory phrases
- 322.088 Embedded listed substances
For more information about our delivery, see our SAP Help Portal.
Integrated sales order check for ship-to customer compliance
With this feature, the customer compliance check, you as a product stewardship specialist can specify the risk level of an unpackaged chemical product. Using this information, the system checks if the customer ship-to-party is allowed to receive the product. The goal is to prevent the illegal use of the product and incidents caused by the mishandling of the product. You can select this compliance pattern in the Manage Compliance Requirements – Product Marketability app.
In order to ensure chemical safety in the workplace, information about the identities and hazards of the chemicals must be available and understandable to workers.
If the market assessment status for the sale of the compliance-relevant product that is ordered to a particular ship-to country/region is Allowed with Restriction, the customer compliance check is carried out as part of the product marketability check for the sales order.
The check begins by finding the compliance requirement versions based on the Customer Compliance Check compliance pattern that applies to the ship-to-country/region of the customer. Then the check finds the released marketability assessments at the unpackaged product level with the marketability status Customer Assessment Required for the relevant country/region.
If the required marketability assessment isn’t available in the system, a compliance request for a customer assessment appears in the worklist for the product stewardship specialist in the Process Requests from the Logistics app. The product stewardship specialist processes the request and sets the risk level of the product. Products with a high or medium risk level require a customer assessment.
From this information, the check finds the relevant chemical customer material, which refers to the product that is shipped to a particular customer. The system checks if the chemical customer material has been assessed as Compliant against the relevant compliance requirement versions. If so, and if the marketability assessments are still up to date (no older than 24 months), the product stewardship specialist can set the market assessment status to Allowed, which removes the block from the sales order.
Demo 2: Improved go-to-market compliance for unpackaged chemical products to ensure customer compliance with product handling (including audio).
Management of Poison Centre Notification
With this SAP Fiori app, you can assess an unpackaged product or raw material that you selected in the Manage Basic Compliance Data – Unpackaged Products app against a compliance requirement for Poison Centre Notification. Within the assessment, you can specify the data required on a safety data sheet or labels. You can update the data to ensure that it’s up to date and the product stays compliant. You can confirm Regulation Status and add a Unique Formula Identifier.
The Poison Centres across the EU are harmonizing their information according to the Annex VIII of the CLP Regulation. The legislation came into force on 1 January 2021 and brought with it several significant changes concerning companies that supply hazardous chemicals.
The new Poison Center Notification (PCN) must be carried out for all mixtures classified as hazardous due to their physical or health properties. Mixtures that are only classified as hazardous to the environment do not (any longer) have to be reported.
When does the new notification have to be made?
The Poison Center Notification (PCN) and the new labeling with the UFI code have been required since January 1st, 2021. Only mixtures that are used exclusively industrially (i.e., not used in a mixture for consumers or for professional users) only have to meet the new requirements from January 1st, 2024.
If a mixture has already been reported under the existing national procedures, there is a transitional period until January 1st, 2025. Attention: In Germany, this transitional period does not apply to products that have only been reported to the ISI database.
- View poison center notifications for unpackaged products and raw materials.
- Set the registration status of your poison center notification.
- Create remarks when you need to provide additional information.
- Set your unique formula identifier.
- Release information on hazardous ingredients for use in further business processes.
- View the change history of the data.
Demo 3: Assignment of unique formula identifiers to unpackaged products and raw materials (including audio).
Handling of Polymer Categorizations and Polymer Compositions
With this feature, you can categorize a substance as a polymer according to the Organization for Economic Co-operation and Development (OECD) definition. In addition, you can select a polymer composition when you add a substance with a released polymer composition in substance-based compositions.
This feature contains the following functions:
Categorize a Substance as a Polymer
Polymers are substances that are built of monomers in a chemical reaction. The categorization of a substance as a polymer depends on regulations that specify criteria for the polymer definition. If your substance meets the polymer definition of the OECD, you can categorize it accordingly.
Select a Polymer Composition in a Substance-Based Composition
If you’ve released a polymer composition for a substance, you can select the composition when you add the substance in the analytical composition and in the legal composition for unpackaged products and raw materials and in the material-based composition for unpackaged products. In addition, you can also select the polymer composition when you add a substance with a released polymer composition as a component in a polymer composition.
Picture 1: Maintain multiple polymer compositions for a company substance.
Dangerous goods check in ocean freight booking of transportation management
With this feature, you can check whether your compliance-relevant products can be transported by ocean. If no compliant ocean transport is possible, the system blocks freight units and ocean freight bookings to prevent you from planning noncompliant transportation demands and also from carrying out transports that contain non-compliant products.
Compliance with dangerous goods regulations is an important component of product compliance to ensure the safe transportation of dangerous goods. To support your compliance with dangerous goods regulations, dangerous goods checks are now integrated into the processing of the following transportation documents for ocean transport:
- Freight Unit
- Ocean Freight Bookings
If a product has been marked as relevant for compliance in the product master, the system checks dangerous goods data as the transportation document is created or edited. If an item in the document has been classified as a dangerous good, the system also checks if all necessary dangerous goods data is available and whether transportation of the product is allowed, forbidden, or restricted. Depending on the outcome of this check, the system issues warnings or blocks the document.
Picture 2: Prevention about the execution of transports containing non-compliant products
Printing of Dangerous Goods Data on Transportation Management Documents
With this feature, you can print dangerous goods information on documents created from a freight order in Transportation Management.
Print relevant dangerous goods information together with freight documents for:
- Rail transport in Europe: International Carriage of Dangerous Goods by Rail (RID) dangerous goods note
- Road or rail transport in the United States: US Bill of Lading
- Road or rail transport in Canada: Canadian Bill of Lading
- International ocean transport: International Maritime Organization (IMO) Dangerous Goods Declaration
To support your compliance with the dangerous goods regulation, you can now print dangerous good data on the following documents that are created from a freight order if dangerous goods are included in a transport:
|DGNOTE||M_ADR_DG_NOTE||Form for printing the ADR Dangerous Goods Note and the RID Dangerous Goods Note|
|WAYBILL||TM_US_BILL_LADING||Form for printing the Bill of Lading for the USA and for Canada|
|DGNOTE_MAIN||TM_DG_IMO||Form for printing the IMO Dangerous Goods Declaration|
Provide dangerous goods data using a SOAP service for road freight orders to subcontract carriers
This feature enables you to provide dangerous goods data electronically within a SOAP service for sending road freight order details to a freight forwarder while carrying out the subcontracting process. Dangerous goods data is part of the TransportationOrderRequest_Out message EDI. The EDI segment for dangerous goods data is filled when you send a freight order that contains dangerous goods to the freight forwarder.
You can find more information about the dangerous goods EDI structure in the Product Assistance for Product Compliance. See Provision of Dangerous Goods Data Through EDI
Use of National Fire Protection Association ratings for safety data Sheets
With this new SAP Fiori app, you can assess an unpackaged product or raw material that you selected in the Manage Basic Compliance Data – Unpackaged Products app against a compliance requirement for National Fire Protection Association (NFPA) ratings in the USA.
The National Fire Protection Association, NFPA, a private non-profit organization, is the leading authoritative source of technical background, data, and consumer advice on fire protection, problems, and prevention.
The primary goal of NFPA is to reduce the worldwide burden of fire and other hazards on the quality of life by providing and advocating scientifically-based consensus codes and standards, research, training, and education.
While NFPA codes cover several aspects of flammable materials pertinent to SDS’s, perhaps the most significant is the NFPA 704 Hazard Identification rating system (the familiar NFPA “hazard diamond” shown below) for health, flammability, and instability.
The diamond is broken into four sections. Numbers in the three colored sections range from 0 (least severe hazard) to 4 (most severe hazard). The fourth (white) section is left blank and is used only to denote special firefighting measures/hazards.
Picture 3: The NFPA “Hazard Diamond”.
For more information, see the NFPA website: http://www.nfpa.org/.
You can use this app to do the following:
- Set NFPA ratings for an unpackaged product or raw material.
- View NFPA rating of an unpackaged product or raw material.
- Add more information, such as notes.
- Select from ratings for health, fire, instability, and special hazards.
- Release information on hazardous ingredients for use in further business processes.
- View the change history of the data.
Picture 4: Helping to ensure proper ratings information and labels for unpackaged products and raw materials.
Safety Data Sheet Management: Enhanced in shipment and monitoring
With Safety Data Sheet Management, you can organize the legally required safety data sheets, in defined translations, by country/region and regulation. Without the provisioning of a safety data sheet, products cannot be sold into markets.
With this SAP S/4HANA Cloud 2202 release, we made several enhancements concerning the handling and monitoring of the safety data sheets. You can now specify the determination of the product name printed on the safety data sheet. In addition, the system supports you in handling and monitoring the shipment of the safety data sheets regarding the updates for Brexit and the Northern Ireland Protocol as well as in optimizing the bundling of safety data sheets for multiple products for the same customer.
Demo 4: Improved configuration for determining the product name for safety data sheets (SDSs)
Determination of Product Name
During the shipment of a safety data sheet and cover sheet, the system determines the name for the product that is printed on these documents. The system can use the following sources to determine the product name
- Product description from the product master
- Product description of delivery position
- Product sales text from the product master
- Product basic text from the product master
A configuration expert can specify the sources and the priority in which these sources are considered for the determination of the product name for the safety data sheet and cover sheet.
If no priority is entered, the product description from the product master is used.
If no name is available in any of these sources, the shipment of the safety data sheet is canceled and shown as SDS Generation Failed in the Monitor Shipment app.
Handling and Monitoring of Safety Sheet Shipment Regarding Update for Brexit and the Northern Ireland Protocol
There are two different requirements for the safety data sheet, one for Great Britain and one for Northern Ireland. Based on the goods recipient’s address, the correct safety data sheet is used.
Bundling of Safety Data Sheets
The system optimizes the shipment of safety data sheets, thus identical safety data sheets aren’t shipped multiple times to the same customer. To avoid duplication, the product name on the safety data sheet is used as selection criteria. This reduces compliance costs considerably through more efficient safety data sheet processes.
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For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info here
- Sven Denecken’s SAP S/4HANA Cloud 2202 Release Blog
- The Link Collection for Product Compliance here
- Latest SAP S/4HANA Cloud Release Blog Posts here and previous release highlights here
- Product videos on our SAP S/4HANA Cloud and SAP S/4HANA YouTube playlist
- SAP S/4HANA PSCC Digital Enablement Wheel here
- Early Release Webinar Series here
- Inside SAP S/4HANA Podcast here
- openSAP Microlearning for SAP S/4HANA here
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud Community: here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
- Implementation Portal here