Keep Your Order-to-Cash Documents’ Integrity Intact within a Global Trade Compliance Program

When considering standard and non-standard order-to-cash processes, you can employ key workarounds to preserve standard SAP documents as the system of record. Understand the document flow of an order-to-cash process within a global trade operation, as well as the effects on plant operations. Then step through four example adjustments you can make to your order-to-cash process that keep you compliant with global trade policies and regulations.

Developing a sound global trade and compliance strategy is essential in today’s marketplace of increased trade embargoes and unique product export licensing. SAP project teams may be challenged with incorporating the needs to implement SAP BusinessObjects Global Trade Services, focused in the areas of compliance and customs management, while maintaining the integrity of their order-to-cash sales order, shipment, and delivery documents. If these order-to-cash documents are not carefully managed, the global trade processes break down, creating delays and approval issues.

Imagine the case of a chemical-based product, which requires mixing, packaging, and shipping in a fixed window. What happens to the standard order-to-cash process when a product has these additional internal requirements? I’ll show you how to consider a number of both technical options and operating model alternatives to remove system constraints while still providing a compliant global trade solution. First, let’s look into the document flow of the order-to-cash process with global trade compliance in mind.

SAP BusinessObjects Global Trade Services contains two primary areas: compliance management and customs management. Compliance management considers the needs of the company to fulfill orders that are permissible with trade restrictions (such as sanctioned party lists [SPLs]), and required export licenses for placing the product on a ship, plane, or truck to release any blocked documents such as a sales order. Customs management considers the customs documents required at the point of shipment, generally considered in the automated export system (AES) for each country.

SAP BusinessObjects Global Trade Services relies on key order-to-cash documents available in SAP ERP. In SAP ERP sales and distribution (SD), the sales order (or in the case of intra-company movement, the stock transfer order), is the main document that triggers the compliance management actions. After the sales order is created based on a purchase or transfer request, the ordering party is screened against the available SPL for the release of blocked documents so the order can be fulfilled.

Next the country of origin and country of destination are screened against country embargoes and any specific license requirements needed for export. After you verify that there are no order blocks, the sales order generally then commits the process to delivery, creating a delivery order. Deliveries invoke the transport carriers to create shipping documents, which then culminate with the booking documents needed to create final customs documents. These final customs management steps ensure the AES receives all required information, including container sizing and routing

To read the full version of this article, please visit SAP Insider GRC Expert here.

Our SAP PRESS book Understanding SAP BusinessObjects Enterprise Performance Management, which is now available, covers corporate sustainability, global trade, and other topics as they relate to strategy and enterprise performance management. For more information, visit the order page.

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Filed under Audit and Oversight, Compliance, Global Trade, Operations, Program Management, Risk Management, Technology

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