Expanded Features for Embargo Searches in SAP GRC Global Trade Services

  • by Rajen Iyer, Cofounder and CTO, Krypt, Inc.
  • January 15, 2009
Discover the expanded functionalities and flexibility of embargo checking in SAP GRC Global Trade Services. See how easy it is to make sure you’re not shipping to or from an off-limits country.
Key Concept

Embargo checking allows you to screen the ship-to country for export transactions and ship-from country for import transactions. It also allows you to block any transactions shipped to or from embargo countries.

The United Nations publishes an embargo list that it updates periodically. Although the embargoed countries do not tend to change frequently, it is important to keep up with countries that may have sanctions imposed or lifted. It makes sense as a company to be careful or selective about from where you export or import. The best way to be prepared for global changes is to use embargo checking. Both Sales and Distribution Foreign Trade (SD-FT) and SAP GRC Global Trade Services allow you to check for embargos when you create a business partner, but there are advantages to using SAP GRC Global Trade Services. I will compare SD-FT and SAP GRC Global Trade Services and explain the expanded capabilities of SAP GRC Global Trade Services.

The most important difference between SD-FT and SAP GRC Global Trade Services is that in SD-FT, the embargo countries are not part of the master data. This is a disadvantage because you must manage configurations manually through transport. Typically, companies restrict configuration changes and only allow changes to move to production once they are tested. When the user checks for countries with embargos, the system blocks the embargoed countries for all import and export transactions. For example, Figure 1 displays the country North Korea with the valid-to date and embargo situation checked as it appears in SD-FT. It uses transaction VE53, which is a configuration setting that you use to identify embargoed countries. In this configuration, you can also identify other economic and political organizations. If the exporting country has any economic or political boycotts with the destination country, you can identify it here.

Rajen Iyer

Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.

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