SAP GTS Overview

GTS stands for Global Trade Services and is a standalone SAP application that replaces the existing foreign trade functionality in SAP R/3. To conduct business in other countries, the company has to follow local regulations, fulfill documents requirements, and understand complex tariffs and duties. Failing to do so can be expensive and that’s where GTS comes handy. They ensure business abides by the compliances. SAP GTS is an ERP based solution meant for companies that are primarily into International Operation. Firms which have trading agreements with a large network of partners across the globe with operations in various countries are most likely to use this application.

In today’s global markets, outgoing shipments have to clear customs first. That suggests ensuring that products are appropriately classified and have complete and precise documents. Plus mandatory digital filing is difficult through the Automated Export System (AES) directly to UNITED STATE Traditions. Also, with the spread of worldwide terrorism, export procedures are subject to closer analysis than ever.

For a company with partners overseas, it’s necessary to make sure that they are taking care of the right people, countries, and the right products. Businesses have to recognize their constraints on specific items, countries of destination, business partners, and there are a host of guidelines to adhere to– and extreme charges for disobedience. Furthermore, to endure in today’s very competitive global markets, Businesses can not afford to miss the possibilities offered by trade preference arrangements. They have to offer detailed certification of origin for their products to their abroad consumers.

GTS architecture how it interacts with the Feeder System, all the master data like Product, customer-vendor, and all the transaction data like sales order shipment invoice document get pushed to GTS via RFC Phone Call. As well as any kind of message back to the Feeder system flows via RFC call.

Business Advantages of SAP GTS

Minimize Risks of Non-Compliance 

To keep business exports following legal guidelines, SAP GRC Global Trade Solutions allows organisations to screen business partners from officially sanctioned- event listings.

Easily Categorize Products

With SAP GRC Global Trade Services, businesses can automate and improve product classification Meet Complex Documentation Requirements.

They can also identify all documents for a specific transaction, including those called for by the EAR and by federal government firms such as the UNITED STATE Department of State.

Handle Electronic Communication

SAP GRC Global Trade Services offers an AES-certified functionality required by business.

Make the Most of International Agreements

With SAP GRC Global Trade Services, businesses can efficiently handle trade-preference processing within the range of Open market agreement.

Alleviate Financial Risk

SAP GRC Global Trade Services assists in common ways of international payments (such as letters of credit), helping to pay bills. SAP Foreign Trade and/or SAP Globe Trade Services (GTS) provides the tools you need to compete successfully in today’s market. This is as follows:

• Manage import and export processes, integrating them effectively into the Supply Chain.
• Automatically determine licensing requirements for importing and exporting goods based on current regulations.
• Simplify reporting with automated procedures for creating, printing, and sending declarations to the customs authorities.
• Determine which of your items receive Preference handling.
• Offer an active interface for sending out data through internationally offered EDI systems and various other electronic media.
• Update or alter data in all appropriate foreign trade documents at any moment before the final goods issue.

Foreign Trade in ECC and SAP Globe Trade Services (GTS) components are tightly integrated with Materials Monitoring (MM) for dealing with Imports and Sales Distribution (SD) for handling Exports. In the area of documentary repayments, it is also integrated carefully with the Financial Accountancy application.

Special in SAP GTS

Checking against business partners performed in the following methods:

• Synchronous screening – GTS screens your company partners immediately once you have created SO/POs
• Asynchronous screening – If there are a lot of vendors/customers after then screening can be done at the background

With SAP GTS you can not only assign licenses but you can also examine the condition of the licenses and various other elements like the worths, Foreign trade organization that is involved, product classification, the country of dept/dest, business partner details.

What is the relation between SAP R/3 and SAP GTS?

SAP R/3 is the previous name of the enterprise resource planning software program created by SAP AG. It is an enterprise-wide information system developed to coordinate all the sources, information, and activities required to complete business procedures such as order fulfillment or payment. SAP R/3 was built to distinct functional components, covering the regular features in place in a company. One of the most commonly used modules were Financials and Controlling (FICO), Human Resources (HR), Material Management (MM), Sales & Distribution (SD), and Production Planning (PP). Each component managed specific business tasks on its own, however, was linked to the others where applicable. For example, an invoice from the billing transaction of Sales & Distribution would go through to accountancy, where it will appear for account receivable and cost of goods marketed.

SAP typically concentrated on best practice methodologies for driving its software application procedures, but more just recently expanded into vertical markets. In these circumstances, SAP created specialized modules (referred to as IS or Market Particular) geared toward a specific market segment, such as energies or retail.

Bottom line

As we reach the end of this topic, I would like to conclude by saying looking at the demand of SAP GTS the professional who desires to build a career in this field will have a bright future.

However, for all that to happen relevant knowledge plays a major role. And at ZaranTech, we offer a self-paced online training program on SAP GTS. We make it possible for aspirants to learn from the best while in the comfort of their homes.  

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Happy Learning!