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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
The following figure illustrates where these components are integrated with ECC.
The functionalities of Foreign Trade with ECC and SAP Global Trade Services (GTS) are shown in the table below: GTS Sanctioned Party List Screening (SPL/DPL) Embargo checking License determination Export/Import declaration creation and electronic filing Manually creating declarations Printing Foreign Trade SD in ECC Legal control (license) manual process
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Product classification Preference determination Letter of credit processing Restitution handling Electronic Compliance Reporting
Sanctioned Party List Screening (SPL/DPL) Comparison: GTS SPL screening available and the process is automatic Foreign Trade SD in ECC No SPL screening available in ECC standard functionality (Should use GTS or 3rd Party Tools) Should transfer ECC documents to 3rd Party tools for denied parties Cost of ownership not with SAP
No transfer required as GTS is tightly integrated with ECC Cost of ownership with SAP as everything takes place in SAP. This saves a lot of cost.
With SAP Global Trade Services (GTS) it is possible to check one time Vendors, Customers and address changes of documents automatically when screening of POs and SOs is done where as this functionality is not available in core ECC. The master data for SPL screening is maintained in the SAP GTS system as XML whereas there is no provision to maintain the same in ECC. Document blocking, releasing and monitoring due to SPL screening is effectively done through SAP GTS whereas this is very complex with ECC.
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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
SPL in SAP GTS Checking against business partners done in the following methods: 1. Synchronous screening - GTS screens your business partners automatically once you have created SO/POs 2. Asynchronous screening If there are large number of vendors/customers then screening can be done at background Embargo with FT vs. GTS Embargo checking in ECC is not automatic. Manual checking done by a lot of companies. GTS ensures process automation for embargo checking. License Determination Comparison GTS Tracking, assigning and license determination for a product very efficient. Foreign Trade SD in ECC Very complex process of creating and assigning licenses. ECC will not determine what license types are required for the product
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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
The process of assigning licenses to orders with Foreign Trade in ECC is shown in the figure below:
With SAP GTS you not only assign licenses but you can also check the status of the licenses and other aspects like the values, foreign trade organization that is involved, product classification, country of dept/dest, business partner details etc as shown in the figure below.
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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
This makes GTS more appropriate for License determination than the Foreign Trade with ECC for export processes as the former ensures automation and is very simple to use.
SAP GTS also shows the license for a order in a customs documents as shown in the figure below which is not possible with Foreign Trade in ECC.
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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
Import/Export Declaration Comparison: GTS Automatically documents created from ECC Foreign Trade SD in ECC Manual creation of declarations
Declaration creation and electronic filing very efficient with GTS. Lot of time is saved as there is no manual intervention
Post declaration creation you have to print the declarations and use brokers for filing in ECC. Lot of time is consumed for the process
Save the huge amount of fees by getting rid of brokers and filing yourself
Pay hefty fees in filing with customs through brokers for both export and import through ECC
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Business Scenario: Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS) Author: Ravi Kalluri Module: SAP GTS & ECC
Benefits of SAP GTS 1) 2) 3) 4) 5) 6) 7) Ensure vigilant compliance with trade regulations Mitigate risks of huge fines and penalties Avoid costly shipment delays at borders and customs Quick implementation Lower IT maintenance costs Faster Communication with customs Lot of return of investment
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