Compliance Document Multiple Legal Regulations

[dean_hinson2]

Export in the GTS Compliance Area....We know the FTO is based on the company code of the sales order.  And we know that the country of the shipping point or plant drives the legal regulations. However, can you have line items with different ship from countries in a document?

I mean normally the FTO represent downstream, the customs authority, like US, CA, etc.  But having line items with different ship from countries, therefore bringing in different legal regulations, does this make sense?  Does GTS allow this scenario?

Regards, Dean.

[former_member215181]

Hi Dean,

You introduce the topic with "Export", but then talk about the "Ship-from" countries.  That seems a little contradictory, so perhaps you could clarify - which ERP document type are you referring to?

Thanks & regards,

Dave

[dean_hinson2]

Hello Dave,

That's the caveat.  Here's the scenario, I shipping to a customer, let's say in Germany. However, the products are in two locations, one in US and the other in MX. So, when I create the Sales Order, the company is in Canada, then the FTO for the Compliance Document is FCA but the line items have legal regulations from US and MX. I think GTS allows this, but it does not make sense.

I see this as an undocumented feature. The coordination of resolving any legal control on this document is high.

What do you think?

[former_member215181]

Hi Dean,

From a rather quick look at the program code, it doesn't look promising...

It starts well enough: the feeder system mapping correctly identifies third-party sales transactions and determines the correct departure and destination countries for the data transfer to GTS.  But in the re-mapping, the header countries (CTYDP, CTYAR) get copied from the first item and are then used for the Compliance checks.

As you know, there are individual checks for each item in the order, but the relevant country - and therefore the Legal Regulation(s) - is determined from the header data.

Your best bet, therefore, could be to create (and check) individual Sales Orders and have them combined either for Delivery or for Billing.

Hope that helps.

Regards,

Dave

[Former Member]

Dave/Dean, the legal regs will be determined at both the item level - based on the country of origin of the shipping plant and the header level - based on the ship to partner/country of destination.  The FTO really only factors into which administrative unit preference would be done in, it doesn't factor into physical shipping location like legal determination does.

If you create a sales order with multiple plants, it will be the country of origin for each line, which can vary vs the destination country of the ship to partner (which will be constant for all lines) that determins which legal reg to draw on.  One thing to keep in mind is that while you can have multiple plants - or even multiple ship points within the plant(s) on a single sales order - there will always only ever be a one to one plant/ship point at the delivery level.  So even if you have items shipping out of the US and MX like in your scenario on one sales order, they will create as two distinct deliveries.  Those items will be determined separately based on however you have US-GE and MX-GE regs defined.  Should you only have a block on say MX-GE portion, the US based shipping department will be able to process their portion of the order regardless of the MX block.

In the example below you can see where I've created a sales order split between Canada and the US with each line shipping to CA.  I have materials set up within regs for each country to block orders for exports and domestic.  Lines 1 and 2 are US-CA with 4 and 5 being CA-CA.  In the log view you can see where the US line items are being determined against 4 US based regulations while the Canadian lines are only looking at the 2 Can based regs

Hopefully that helps a little bit.  It gets even muddier if you should want to bring Import controls into place as well and have to deal with POs vs Sales orders!

-Graham

[former_member215181]

Hi Graham,

Thanks for that further input.  Your test data looks pretty persuasive.  When I have time, I'll look more closely at the code, and try to see what I missed before.

But I'm not sure that Dean's situation is quite like that.  I think he's describing a "third-party" supply, so there won't be a Plant or Shipping Point in the supplying country.  From what you've said, I think that might change the results somewhat.

Regards,

Dave

[dean_hinson2]

Hello Graham,

I understand your reply, but I think the issue is the authorization concept implemented in our company for GTS.  The FTO is an authorization object and each region/country has access to only their own FTO. With that said, either the central department needs to revise the authorization concept or needs to communicate to the divisions that sales order must be generated on a per country of departure basis.  Otherwise, a customs document will have a compliance issue and the responsible department will not be able to access the document and resolve.

The flexibility is nice but it can cause some issues. Especially, is you think of a distribution modal on a global basis.

So, I think their are decisions to be made in our organization on this topic.

Thank you for your input and candid responses.