4.5 Risk Management
4.5.3 Preference Processing Service
4.5.3.3 Preference Agreement
4.5.3.3.1.1 Assigning Determination Procedure for Active Preference Agreements
Use
In this step you assign the determination procedure for active preference agreements.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Assign Determination Procedure for Active Preference Agreements
2. On the Change View “Preference Processing: Determine Active Preference Agreement screen, choose New Entries and enter the following data:
Field name Description User action and values Note Pref. Agreemt Determin.
Procedure
YHPRE
3. Save your entries
4.5.3.3.2 Control Settings for `Preference Processing`
Service
4.5.3.3.2.1 Defining Rule Set Use
In a rule set, you combine all the preference agreements that apply to a jurisdiction. You define the preference procedures and preference rules for each of the agreements at rule set level. You can then assign the rules and procedures to the individual agreements. To prevent an overlap between different jurisdictions (for example, NAFTA and the EU) from adversely affecting the ‘Preference Processing’ service in the application, you can separate the settings for the various jurisdictions when you are defining rule sets.
In addition to a name, you also have to enter the following details for each rule set to allow the rules and procedures to be uniquely assigned. • Type of rule set A rule set groups preference agreements by jurisdiction. There can be multiple rule sets within a jurisdiction. You therefore have to specify whether each rule set is a rule set for preference agreements within the EU or NAFTA. • Numbering scheme You use a numbering scheme to choose the customs tariff that forms the basis for all the rules in the preference agreement that you want to group in this rule set.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management
Preference Processing Service Control Settings for ‘Preference Processing’ Service Define Rule Set
2. On the Change View “Rule Set for Preference Agreement”: Details screen, choose New Entries and enter the following data:
Field name Description User action and values Note
Rule Set YHEU
Rule Set Type B
Number Scheme DESTA
3. Save your entry.
4.5.3.3.2.2 Control Settings for `Preference Processing`
Service Use
In the application, all processes take the rule set into account. In a rule set, you combine all the preference agreements that are valid in a specific jurisdiction. For each jurisdiction, you have to define a rule set and assign the respective preference agreements. You also have to specify the Currency for the threshold value and the Exchange Rate Type for translations (for example, for translations between the threshold value currency and the document currency).
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Control Settings for ‘Preference Processing’
Service Control Settings for ‘Preference Processing’ Service 2. On the Change View “Control Settings for Preference Processing”: Overview screen,
select the relevant preference agreement, choose Details and make the following assignments:
Field name Description User action and values Note
Peference Agreement YHEFT
Rule Set YHEU
Preference Agreement
YHOTH
Rule Set YHEU
3. Save your entries.
4.5.3.3.2.3 Defining Rule Set Attribute for Preference Processing (Manual)
4.5.3.3.2.3.1 Defining Procedures
If you wish to manually create and define preference agreements, you have to configure the system as described below. The concept of manually defining preference rules for each agreement is based on the similarities between the various preference agreements that apply within a given jurisdiction. In SAP Risk Management – Preference Processing, rules are therefore defined at two levels. At the first level, you define the procedures and rules for the jurisdiction level only; that is, for a rule set. This allows you to group preference rules that apply to more than one preference agreement and to minimize data maintenance. At the second level, you assign the defined rules to the various agreements in a rule set. You also specify the base rules within an agreement that the system is to use in specific
circumstances.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Define Rule Set Attribute for Preference Processing (Manual) Define Procedure for EU Rule Set 2. On the Change View “Preference: Define Procedure”: Overview screen, select the
relevant preference agreement, choose New Entries and enter the rule set with procedures:
Field name Description User action and values Note
Rule Set YHEU
Procedure YH001
Description Third Country
ThirdCtry X
Rule Set YHEU
Procedure YH002
Description HS Heading
HS Heading X
3. Save your entries.
4.5.3.3.2.3.2 Defining Preference Rules - Group Together Procedures
4.5.3.3.2.3.2.1 Defining Procedure Group Use
Procedures are the smallest unit of a preference rule. A procedure is a specific test method for a product with a defined HS heading. You can enter one or more procedures in a procedure group. The next biggest unit of a preference rule is a rule group, which combines one or more procedures or procedure groups. There are many different types of procedures in a preference agreement, for example:
50-50 check (originating value greater than/equal to non-originating value)
Additional condition
Third-country proportion (check of non-originating proportion of product)
HS heading (check of proportion of a specific HS code in a product)
No heading change (check of non-originating proportion with the same HS heading as the product)
Heading change (check of non-originating proportion with a different HS heading from the product) In this step, you define all the procedures you require for preference processing.
In this step, you define all the procedures you require for preference processing.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Define Rule Set Attribute for Preference Processing (Manual) Group Together Procedures 2. On the Change View “Procedure Group Definition”: Overview screen, enter the rule sets
and assign them to procedures as shown in the table below.
Field name Description User action and values Note
Rule Set YHEU
Proced./Rule Grp YHP001
And X
Rule Set YHEU
Proced./Rule Grp YHP002
And X
3. Save your entries.
4. Select each rule set and choose Procedures within the group.
5. On the Change View “Procedures Within the Group”: Overview screen, make the following entries:
Field name Description User action and values Note
Rule Set YHEU
Rule Group YHP001
Seq. No. Proced. 1
Pref. Procedure YH001
Operation Code LE
Perc. Share 40,00
Rule Set YHEU
Rule Group YHP001
Seq. No. Proced. 2
Pref. Procedure YH002
Seq. No. TariffNo 1
From Tariff No. 1000
To Tariff No. 2000
Field name Description User action and values Note
Rule Group YHP002
Seq. No. Proced. 1
Pref. Procedure YH001
Operation Code LE
Perc. Share 5,00
6. Save your entries.
4.5.3.3.2.3.3 Defining Preference Rules – Link Rule Groups 4.5.3.3.2.3.3.1 Defining Rule Group
Use
This section describes how you map preference rule hierarchies with SAP Risk Management – Preference Processing. You require hierarchies to map the complicated AND or OR operations for preference rules. Using rule group links, you can map preference rules, such as rules that refer to partial quantities of HS headings. In preference agreements these partial quantities are indicated with the prefix “ex” and only apply if the goods listed in column 2 are affected. You therefore have to link the content of column 2 as a condition to the procedures from columns 3 and 4. You link rule groups in two steps. First, you decide for which rule set you want to define the rule group and you assign a name for the rule group. You then assign the procedure groups or rule groups to the defined rule group.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Define Rule Set Attribute for Preference Processing (Manual) Link Rule Groups
2. On the Change View “Rule Group Definition”: Overview Preference: Define Procedure”:
Overview screen, select the relevant preference agreement, choose New Entries and enter the following rule set with the procedure:
Field name Description User action and values Note
Rule Set YHEU
Proced./Rule Grp YHG001
Or X
3. Select this new entry and choose Rule Group Link.
4. On the Change View “Rule Group Link”: Overview screen, enter the following subordinated groups:
Field name Description User action and values Note
Subord. Grp. YHP001
YHP002 5. Save your entries.
4.5.3.3.2.3.3.2 Assigning Rules to Agreement and Classification
Use
As well as the rules for specific HS headings, preference agreements contain additional rules that each apply to whole agreements. You can save these rules as base rules in SAP Global Risk Management – Preference Processing. You define base rules at preference agreement level. Base rules can have the following specifications:
Basic rule
Minimal operations rule
Set of goods
General tolerance rule You can use base rules to determine a product’s preference eligibility in the following cases:
There are no specific preference rules for the goods in an HS heading in the agreements.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Define Rule Set Attribute for Preference Processing (Manual) Assign Rules to Agreement and Classification
2. On the Change View “Preference: Agreement-Tariff Code Rule Group” Overview screen, choose New Entries and enter the following data:
Rule Set Agreement Customs Tariff No
30.12.2007 YHG001 YHP002
YHEU
YHOTH
10000001 Today’s date
30.12.2007 YHG001 YHP002
YHEU
YHEFT
20000001 Today’s date
30.12.2007 YHG001 YHP002
YHEU
YHOTH
20000001 Today’s date
30.12.2007 YHG001 YHP002
3. Save you entries.
4.5.3.3.2.4 Preference Determination
4.5.3.3.2.4.1 Control Settings for Cross-Plant-Preference Determination
Use
You have to decide at which organizational level the system is to aggregate vendor declarations and perform preference determination. The preference model for cross-plant preference determination aggregates the vendor declarations for a plant group and performs preference determination for cross-plant bills of material. It aggregates the results for all a product’s bills of material on a cross-plant basis. To configure cross-plant preference
determination, you require as control parameters the names of the plant and plant group from the feeder system. You also need the name of the feeder system.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management
Preference Processing Service Organziational Structure Define Cross-Plant Preference Model
2. On the Change View “Preference Model: Cross-Plant Determination”: Overview screen, choose New Entries and enter the Grouping of Org. Unit FS:
Field name Description User action and values Note
Grouping of Org. Unit FS YHGRP
3. Select this entry and choose Assignment of Plants.
4. On the Change View “Assignment of Plants”: Overview screen, choose New Entries and enter the following logical systems:
Field name Description User action and values Note Logical System The locial system of your
ERP system / client
For example KS7CLNT046
Plant BP01
Logical System The locial system of your ERP system / client
For example KS7CLNT046
Plant BP02
5. Save your entries.
4.5.3.3.2.5 Vendor Declarations Use
Vendor-based vendor declarations form the start of the preference processing cycle, and vendor declarations for customer’s purposes end the cycle. To edit and define all the required documents for vendor declarations for customer’s purposes and vendor-based vendor declarations, you have to make settings in the areas below: • Administrative unit • Control settings for data scope • Form control
4.5.3.3.2.5.1 Defining Administrative Unit Attributes Use
SAP Risk Management – Preference Processing allows you to combine multiple organizational units, which the system then uses for preference processing. You can therefore group these units, irrespective of their position in the company structure or
hierarchy. This allows you to create a unified representation of your company to request, dun, issue, and cancel vendor declarations. This reduces to a minimum the groupwide effort in communicating with vendors and customers about vendor declarations. The administrative unit represents your group as a single unit (for example, in dealings with vendors) because you only have to request or dun a vendor declaration for a delivered product once. Plant-based correspondence with the vendor is redundant and is replaced with correspondence from the administrative unit.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Organizational Structure Define
Administrative Attributes
2. On the Change View “Administrative Units”: Details screen, choose New Entries and make the following entries:
Field name Description User action and values Note
Administr. Unit H96_FTO
Plant Group YHGRP
3. Save your entries.
4.5.3.3.2.5.2 Control Settings for Data Scope in Vendor Declaration
Use
With these control settings, you can configure the system to automatically assign all partners to the respective vendor declaration process or you can configure it in such a way that you manually start the processes for specific business partners, using the partner master. You can make these detailed settings for the following processes:
Requesting and dunning vendor-based long-term vendor declarations
Issuing and canceling long-term vendor declarations for customer’s purposes
Issuing detailed declarations of dutiable product components (for customer’s purposes)
For each administrative unit and partner grouping, you define these processes by setting indicators. If you do not set any indicators, the system selects all the partners in a partner grouping when requesting or dunning long-term vendor declarations. If you set these indicators, you can set an additional indicator in the business partner master to choose the partners for which you want to start the individual processes. The specific selection of business partners in the master data is therefore known as Specific Activation.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management
Preference Processing Service Vendor Declarations Control Settings for Data Scope in Vendor Declaration
2. On the Change View “Preference: Control Settings for Vendor Declaration”: Details screen, choose New Entries and make the following entries:
Field name Description User action and values Note
Admin. Unit H96_FTO
Partner Grouping YHPREF
3. Save your entries.
4.5.3.3.2.5.3 Form Control for Vendor-Based Vendor Declaration
4.5.3.3.2.5.3.1 Form Data for Vendor-Based Long-Term Vendor Declaration
Use
To allow the system to automatically choose the correct forms and texts for the actual process that you perform in the application, you have to define appropriate control parameters. To request and dun vendor-based term vendor declarations and to issue and cancel long-term vendor declarations for customer’s purposes, you have to define the following form data for each administrative unit:
Document type
Form name
Form text
Letter text
For vendor-based long-term vendor declarations, you also have to define additional details for the dunning procedure. In addition to a maximum number of dunning levels, you can assign a specific text to each dunning level. You have to define dunning levels in conjunction with the end of the validity period for the existing vendor declaration. The system then automatically issues each dunning notice on the defined date. For more information on the relationship between dunning levels and the end of the validity period for a vendor-based long-term vendor declaration, see the detailed description in the IMG activity Form Control for Vendor-Based Vendor Declaration.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Preference Agreement Controll Settings for
‘Preference Processing’ Service Vendor Declarations Form Control for Vendor-Based Vendor Declaration
2. On the Change View “Form Data for Vendor-Based Long-Term Vendor Declaration”:
Detail screen, choose New Entries and make the following entries:
Field name Description User action and values Note
Administr. Unit H96_FTO
Type of Document VDDC
Max. Dunn. Level 1
Form Name /SAPSLL/SF_EU_VD_1
Form Text /SAPSLL/SF_EU_VD_1207_2001
3. Go back, select the entry and choose Dunning Levels.
4. On the Change View “Dunning Levels”: Overview screen, choose New entries and enter the following data:
Field name Description User action and values Note
Dunning Level 0
Reminder Days -60
Text for LTVD Letter /SAPSLL/SF_EU_VD_LETTER_REMIND
Dunn. Level 1
Reminder Days 30
Form Name /SAPSLL/SF_EU_VD_LETTER
5. Save your data.
4.5.3.3.2.5.4 Form Control for Vendor Declaration for Customer’s Purposes
Use
You also have the possibility to create a form control for customer’s purposes.
Procedure
1. Access the activity using the following navigation option:
Transaction Code SPRO
IMG in SAP GTS SAP Global Trade Services SAP Risk Management Preference Processing Service Preference Agreement Controll Settings for
‘Preference Processing’ Service Vendor Declarations Form Control for Vendor Declaration for Customer’s Purposes
2. On the Change View “Form Data for LTVD for Customer’s Purposes”: Details screen, choose New Entries and make the following entries:
Field name Description User action and values Note
Administr. Unit H96_FTO
Type of Document
CUDC vendor declaration for customer’s purposes
Form Name /SAPSLL/SF_EU_VD_1207_2001
Form Text /SAPSLL/SF_EU_VD_LETTER_OUT
Letter Text /SAPSLL/SF_EU_VD_LETTER_OUT
3. Save your data.
4.5.3.3.2.5.5 Control Settings for Generating Vendor-Based LTVD Worklist in ERP
Use
You also need to make control settings in your ERP system. These settings are necessary for the creation of the Long Term Vendor Declaration Worklist in GTS. In this step you define the countries where your vendors are located.
Procedure
1. Access the activity using one of the following navigation options:
Transaction Code SPRO
IMG in mySAP ERP Sales and Distribution Foreign Trade / Customs SAP Global Trade Services – Plug In Preference: Define Worklist for Vendor-Based Long-Term Vendor Declarations
2. On the Change View “GTS: Control Settings for Vendor-Based Vend.Decl.Worklist screen, choose New Entries and make the following entries:
Field name Description User action and values Note
Country Organization DE
Worklist Country DE
Country Organization DE
Worklist Country FR
3. Save your entries.