SAP GTS - Sanctioned Party Listing 01/11/2011

Joffy John joffy.john@tcs.com

TCS Public

SPL Listing

What is Sanctioned Party Listing of SAP GTS module? SAP Global Trade Services (SAP GTS) help companies manage all the complexities of global trade including full regulatory compliance. It automates global trade processes and enables a company to manage large numbers of business partners, and high volumes of documents.

SAP Global Trade Services (SAP GTS) consists of three sub solutions:

1. SAP Compliance Management,

2. SAP Customs Management

3. SAP Risk Management.

This document covers Sanctioned Party Listing in compliance module in GTS.

A sanctioned party list contains a list of persons and companies with whom trade must NOT be conducted by law. These sanctioned party lists are issued by government agencies and can be obtained from data providers. All traders must comply with these lists.

The Sanctioned Party List (SPL) Screening service in SAP GTS, can be used to check business partners addresses (for example, the ship-to party) automatically against the sanctioned party lists before goods which are exported. It is a system-independent solution that performs and logs the SPL check and is fully integrated into the complete business process.

SPL master data is maintained, it can begin setting up the screening process. SPL checks can be peformed depending on business partners either using the dialog or in the background (batch).

a. If we decide on dialog SPL screening, the system performs the screening online as soon as we create a document in the feeder system, for example a purchase order or a sales order. The system returns the screening results immediately. The feeder system waits for the SPL screening results before the items are actually posted. If the results are negative, the process is terminated and the user cannot perform any more business transactions in the feeder system. The advantage of the dialog variant is the result the systems displays after performing the SPL screening.

b. If we decide on SPL screening as batch, the system performs the screening identical to the dialog variant. However, the system performs the screening in the background and does not display the screening results after performing the SPL screening. SPL can be performed on periodic checks or on a spot check basis, for example, quarterly, to compare our entire business partner and document data with all the SPL data.

SPL enables system to avoid in making repeated hits on the same business partner address. This can be done by placing specific business partners on Positive or Negative lists

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to prevent the same blocks recurring. In addition, the system automatically recognizes business partners that have been released manually in the Monitoring section of the SPL cockpit. Provided none of the SPL or business partner master data has been changed, the system remembers that they have been manually released and does not block the same business partner again.

SPL enables us to check multiple addresses for business partners against the SPL master data. If we assign more than one address to a business partner in our feeder system, it requires multiple address screening. SAP GTS blocks the document in the feeder system from further processing, if the screening result of the business partner address in the document is positive.

We can integrate SPL screening with Logistics (Sales & Distribution and Materials Management) with SPL Check, we can monitor the blocked business partners and documents and use the audit trail to provide the authorities with the relevant proof that screening has taken place.

GTS Process Flow:

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SPL Master Data The following are sanctioned party list (SPL) master data:

Sanctioned Party Lists

Business Partner

Comparison Terms

Monitoring Sanctioned Party Lists

Sanctioned Party List Screening Scenarios SPL Scenario Description Type of Processing

SPL screening of business partners when the business partner master data has changed

Asynchronous background processing

SPL screening of document partners when the business partner master data has changed

Asynchronous background processing

Periodic SPL screening of business partners Dialog and batch processing

Periodic SPL screening of document addresses

Dialog and batch processing

SPL screening of business partners when the sanctioned party lists have changed

Dialog and batch processing

SPL screening of document partners when the sanctioned party lists have changed

Dialog and batch processing

Blocked business partner screening when the business partner master data has changed

Dialog and batch processing

Simulated SPL screening of business partners No updates written to database

Simulated SPL screening of document partners

No updates written to database

SPL Screening When SAP GTS performs SPL checks on business partners and blocks a business partner due to a match between a text string in the SPL master data and a text string in the business partner data, we can, if necessary, release the blocked business partner manually. The basis for a manual release is that the business partner does not appear in an official sanctioned party list. We can release the business partner in the Monitoring section of the cockpit by choosing Business Partner Blocked.

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The system recognizes whether the business partner data or SPL data has changed since the last check. If no changes have been made to the data since the last manual release, then the system adopts the last decision that we have made and does not block the business partner that we released manually the last time the SPL check was performed.

Changes to the data since the last SPL check was performed that affect the system reaction include:

Changes to SPL master data since the last SPL check

Existence of several different SPL entries determined as hits

Changes to the business partner address data since the last SPL check

Changes to Customizing settings

The result is that the system cannot adopt the last decision we made and checks the business partner against the SPL master data again.

It is possible to perform SPL checks on business partners for whom several addresses are available in business partner master data. However, we also have the option of making a setting in Customizing for the SPL Screening service to determine whether a match between one of several addresses and an SPL entry is sufficient to cause a block or whether there must be matches between the SPL entry and more than one of the business partner addresses.

We can also determine which of the addresses we want the system to check in SPL Screening service.

Once the system outputs results of multiple-address check, we can monitor which of addresses resulted in a positive match between SPL data and business partner data.

Enhanced Authorization for SPL Screening The enhanced authorization within the sanctioned party list (SPL) screening functionality means that we can restrict data maintenance in SPL to specifically selected users that belong to one foreign trade organization. This is of particular importance in the SPL Screening Integration with Human Resources scenario due to the fact that there are laws & regulations for data protection in some countries. The result is that personnel data cannot be viewed or manipulated by other unauthorized persons. For example, the SPL screening results of business partners from sensitive countries may only be displayed and edited by employees who are either form the same country or country group.

SPL Screening with Logistics The sanctioned party lists are issued by government agencies and can be obtained from data providers. All traders must comply with these lists. With SAP Global Trade Services we can implement sanctioned party list (SPL) screening into general logistics processes.

The following activities are performed for SPL screening with Logistics

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SPL Screening when Business Partner Addresses Change SPL Screening when Document Partner Addresses Change Periodic Check on Business Partners Periodic Check when Document Partner Addresses Change Periodic Check on Business Partner Addresses in Positive/Negative List SPL Screening of Business Partners When SPL Changes SPL Screening of Document Partners When SPL Changes SPL Screening of Blocked Business Partners When Business Partner Master Data

Changes

Simulated SPL Screening of Business Partners Simulated SPL of Document Partners Simulated SPL Screening of General Addresses Releasing Blocked Business Partners Releasing Blocked Documents Monitoring SPL Screening using Monitoring Sanctioned Party Lists Monitoring Positive/Negative Lists Monitoring Blocked Business Partners Monitoring Blocked Documents Audit Trail

The business partners are transferred as customers or vendors to SAP GTS and are assigned the role MKK.

Once we have transferred all relevant business partners to SAP GTS, we can perform an SPL check on all newly created business partners.

SPL Checks against the Relevant Business Partners At the beginning of the SPL check, SAP GTS applies the status Not Checked to each Financial Accounting business partner. SAP GTS checks the business partner addresses against the address data maintained in the SPL lists. Following the check, those business partners without any data that matches the data in the SPL lists are assigned the status Released. Those business partners with data that matches the data in the SPL lists are assigned the status Blocked.

Synchronous Checks of the Business Partners Against SPL Data During the Payment

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Transactions. We can perform the SPL screening synchronously by triggering the screening manually or asynchronously by planning as a periodic job to run in the background. Generally, we use synchronous screening for both incoming and outgoing payment transactions.

Any business partners that are blocked by the system due to matches between the data in the business partner address data and the SPL data, and which do not need to remain blocked, can be released manually. Another option to ensure that we do not repeatedly have to release business partners or documents manually is to set those business partners on the positive list.

SPL Checks against Account Holders Every business partner may have one or more bank accounts and each bank account can have one or more account holder. The account holder is also checked against the sanctioned party lists.

SPL Checks against Notes to Payees

In addition, the individual payments may have a note to payee. As banks check these notes to payees, they too are checked against the sanctioned party lists.

Monitoring of SPL Check Results We can use the monitoring functions to get an overview of all blocked business partners and those we place either on the positive and negative list. In addition, the results of the SPL checks are logged and archived in accordance with legal requirements.

Manual Post-Processing of the Checked Business Partners We can process the payment transactions following SPL checks that did not result in any blocked business partners. However, if a payment transaction in FI-CA is blocked due to a blocked business partner in SAP GTS, it is possible to access the business partner from the log of the SPL check by Simulating SPL checks.

Configuration of Sanction Party List Screening For this we have to maintain the settings in SAP GTS.

1. Settings at SPRO level GTS SAP Compliance Management Sanctioned Party List Screening service.

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2. To Activate Business Partner & Business Partner role level maintain the below settings.

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3. Next is to assign determination procedure for Active Legal regulation

4. To activate Legal Regulation at country and country group level, we have to Execute Activate Legal regulation & maintain entries as shown in below screen

shot.

5. To Define control procedure for address comparison

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6. Now press folder Detail Control and input the fields we would like to check for address.

7. And to maintain Address Object for comparison with various fields in address, input data as shown below.

8. To define "Control Settings for 'Sanctioned Party List Screening' Service press details button

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9. Here we can maintain the following settings for Legal regulation pertaining to SPL screening service in various tabs:

1. Control setting for "SPL Service

2. Document Control

3. Scope of Check

4. Audit

5. System Control

6. Workflow

Creation of SPL Master Data as shown below

10. To maintain Master Data for SPL use Transaction code - /n/sapsll/menu_legal SAP Compliance Management Sanctioned Party List Screening

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11. Edit /Creations of SPL - Provide Legal Regulation & Data Provider.

12. To load SPL Data using XML file format, its in Master Data Tab Sanctioned Party Lists Load Sanct. Party Lists from XML File

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13. Now input details like Legal regulation, Type of list and Data provide. Apart from this specify the data file path to upload it into GTS.

14. We can see the SPL uploading log in Master Data Sanctioned Party Lists Search Upload Logs.

15. To add the Business Partners required during creation of SPL screening like Data Provider etc we can use Master Data Business Partners Edit Business Partners.

16. To monitor the SPL details for Change history, Expiry details etc follow the below path.

17. For settings of SPL in SPLLogistics Asynchronous Check Check Business Partner address & execute.

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18. Input the data and execute we will get the below screen as per selection of data earlier.

19. In the above screen shot, we can also see various options like Lock or Release a Business Partner as well as put them in Positive or Negative list. We can also use Mass Release strategy for releasing Business Partners.

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20. To check the changes in Sanctioned party address, we can use option Check Document Address

21. Input the values and press execute icon. It will show results only, if there are any changes in Business Partner address.

22. To Monitor the Business Partner for status like Blocked, Positive and Negative List execute the necessary option

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23. Example for Checking and releasing the BLOCKED Business Partner and to release the same select the partner and press .

24. To display blocked documents at various levels and to MANUALLY RELEASE A BLOCKED document. Execute the required option from below.

25. To MANUALLY RELEASE a BLOCKED document, execute an option from above menu & input details in next screen & execute. A new screen details will come now select the required document and press .

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