Use Recycling Administration for Better Environmental Fee Reporting

  • by Dietmar Giljohann, When you need to retrieve archived data, follow this process to load it back into your BW system.
  • February 15, 2008
Environmental regulations differ throughout countries, leading environmental fee reporting to be very difficult. See how an SAP add-on — SAP Recycling Administration — works to keep your data consistent and in line with the different regulations.
Key Concept

Environmental fee reporting is required in many countries for packaging, batteries, and waste on electrical and electronic equipment (WEEE). Some countries have further special legal requirements to report on other substances and sold tonnage. Usually the manufacturer (in the consumer product industry) or the company bringing the goods on the market is responsible for the reporting. Fees are charged to cover the recycling cost for the goods or packaging that the end consumer either throws away or recycles. Those goods are marked according to the fee systems they are subject to: Printed symbols like a green dot (for packaging) or a crossed dustbin (for WEEE) indicate relevancy to one or more fee systems.

Legal requirements for environmental reporting have existed in European Union (EU) member states for the last decade and are making their way into other countries as well. In recent years, countries on other continents (such as Canada, South Korea, Australia, and some states in the US) published similar legal requirements. Usually the fee reporting underlies regular (annual) audits. Because legal requirements are published country by country, responsibilities in many companies are fragmented across departments, resulting in a low priority for environmental fee reporting. Some companies respond by establishing local reporting systems with minimal effort and are later afflicted with high unexpected data volume.

Many companies in the consumer product industry are subject to one or more of the following aspects:

  • Various environmental fee reporting systems in one region or hub

  • Different IT systems in place for packaging, battery, and waste on electrical equipment (WEEE)

  • Performance issues because of growing packaging master databases

  • Similar legal requirements from Asia and the US

  • Mergers & Acquisitions and its related additional fee database volume causing extra complexity on legal compliant fee reporting

SAP Recycling Administration (REA) is an add-on to SAP R/3 4.5B systems up to SAP ERP Central Component (ECC) 6.0 to effectively treat these topics. I’ll explain some of the key features of REA and how you can use it bolster your environmental reporting processes.

Dietmar Giljohann

Dietmar Giljohann is an SAP business systems analyst in the consumer goods industry. He has a mechanical engineering diploma and a Ph.D. in computational acoustics. His expertise areas are SAP R/3 SD, PP, PS, MM, REA, EDI, and SAP NetWeaver. He is a speaker for the German and the European REA user groups.

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