Question 1. What Is Gts In Sap?
The system for Global Trade Services (GTS) lets you automate your global trade transactions, manage large numbers of business partners and documents, and ensure that your company always complies with constantly changing international legal regulations.
Question 2. Compare Ecc Foreign Trade Vs Sap Global Trade Services (gts)?
Comparison of ECC Foreign Trade Vs SAP Global Trade Services (GTS):
SD Foreign Trade vs. SAP Global Trade Services (GTS)
Since the business structures are becoming more complex and markets becoming more global nowadays the necessity of handling foreign trade of a business is rapidly gaining importance. SAP Foreign Trade and/or SAP Global Trade Services (GTS) provides the tools you need to
compete effectively in today’s market. This enables you to:
- Manage import and export processes, integrating them effectively into the Supply Chain.
- Automatically identify licensing requirements for importing and exporting goods based on current regulations.
- Simplify reporting with automatic procedures for creating, printing and submitting declarations to the customs authorities.
- Determine which of your products qualify for Preference handling.
- Provide an active interface for sending data via internationally available EDI systems and other electronic media.
- Update or change data in all relevant foreign trade documents at any time prior to the final goods issue.
Foreign Trade in ECC and SAP Global Trade Services (GTS) components are tightly integrated with Materials Management (MM) for handling Imports and Sales and Distribution (SD) for managing Exports. In the area of documentary payments it is also integrated closely with the Financial Accounting application.
Question 3. Explain Compliance Management?
Compliance Management contains functions relating to import and export control regulations. This feature allows you to monitor procedures that are subject to licensing requirements and to comply with international legal regulations which prevent and/or restrict trade with individuals, groups and individual countries.
Three main areas of Compliance Management are:
- Sanctioned party list screening
- Legal control – export (including embargo checking and license management)
- Legal control – import (including embargo checking and license management)
Question 4. Explain Customs Management?
Customs Management : Customs Management allows you to standardize and automate import and export procedures with customs authorities. Communication to the customs authorities can be done via the exchange of electronic messages, as well as the printing of the necessary forms. This simplifies and accelerates customs clearance and administration.
The main areas are:
- Transit procedure
- Import and Export Management
- Product Classification
- Printing trade documents
- Excise Duty Monitoring
Question 5. Explain About The Risk Management Function In Sap Gts?
Risk Management is used for Letter of Credit processing, preference determination and the management of Long Term Vendor Declarations. Allowing you to minimize the financial risk associated with global trade activities.
The following services are available:
- Preference processing
- Letter of credit processing
Question 6. Explain About The Electronic Compliance Reporting Function Is Sap Gts?
Electronic Compliance Reporting : ECR enables the regular issue of Intrastat declarations to the authorities for Intra-European trade between two EU member states. The relevant data is collected from the logistics processes, and then sent to your national statistics authorities periodically.
Question 7. What Are The Advantages Of Using Sap Gts?
The main advantages of using SAP GTS are
- Saving the time by automated processes
- Expenditure reduction
- Less human work involved
- Automatic checking the compliance violation and banned dealers
- Can keep the company brand and trust by avoiding the fines and penalties
- Fast trade processing and customer satisfaction
Question 8. What Are The Things Can Be Achieved By Using Sap Gts?
These are some of the things that can be achieved with the help of an automated GTS platform:
- Reduced risks of trade penalties and fines.
- Cost control during export procedures.
- Boost in productivity and streamlining of all trade processes for improved international operations.
- Elimination of all the manual tasks with the help of automated tools. Correspondingly, the time associated with these manual tasks is also eliminated.
- Seamless and reliable integration through all cross border supply chains.
- Reduced delays with regards to inbound and outbound custom clearance.
- Better customer satisfaction and protection of the company’s brand name.
- Reliable gauging of the credibility of global clients.
- The GTS platform provides adequate tools for Compliance Management, Risk Management and Customs Management. All the tasks and procedures that are a part of these modules are taken care of efficiently.
Question 9. What Is Relation Between R/3 And Sap Gts ?
SAP R/3 is the former name of the enterprise resource planning software produced by SAP AG.
It is an enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order fulfillment or billing.
SAP R/3 was arranged into distinct functional modules, covering the typical functions in place in an organization.
The most widely used modules were Financial s and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP).
Each module handled specific business tasks on its own, but was linked to the others where applicable.
For instance, an invoice from the billing transaction of Sales & Distribution would pass through to accounting, where it will appear in accounts receivable and cost of goods sold.
SAP typically focused on best practice methodologies for driving its software processes, but more recently expanded into vertical markets.
In these situations, SAP produced specialized modules (referred to as IS or Industry Specific) geared toward a particular market segment, such as utilities or retail.
Question 10. What Are The Po Types In Purchasing And Invoices In Ap?
Here are mainly 4 types of PO’s are there:
- Standard PO
- Blanket PO
- Contract PO
- Planned PO
Coming to the invoice there are different type of invoice as mentioned below:
- Standard invoice
- Po default invoice
- Credit memo invoice
- Debit memo invoice
- Prepayment invoice
- Mixed Invoice
- Expense report invoice
In other ways there are one another invoice is Recurring invoices.
Question 11. What Are The Functionalities Involved In Sap Gts?
The functionalities involved in SAP GTS are
- Compliance Management: For check international trade compliance issues
- Customs Management: Deals with customs-relevant transactions
- Risk Management: To minimize the risks involved with financial transactions.
- Electronic Compliance Reporting: For submitting the reports for intra-European trade
- System Administration: Deals with settings and monitoring of the GTS feeder system.
Question 12. What Are The Major Components Of Sap Gts?
The GTS consist four main components:
SAP Compliance Management : With SAP Compliance Management you can monitor all transactions of import and export of goods, and so comply with the legacy laws the entire process chain without any gaps. A central key is the observance of boycott lists, embargo checks, and import and export controls, which can all fully integrated into an already existing systems.
SAP Customs Management : Customs related processes are handled by the SAP Customs Management, what is certified by the Customs. Key points are the product classification, customs valuation, the print out of foreign trade documents and not least the IT-based customs clearance, using a electronic communication with the customs. The electronic ATLAS system (automated tarif and local customs system), as well the european transit process NCTS (new computerised transit system) are supported by SAP GTS. This is for all exporting companies even more important, because the usage of ATLAS is obligatory since 01.07.2009 in Germany!
But even more automated customs clearance systems in Europe, USA and Australia are supported by SAP GTS and has been certified already.
SAP Risk Management : With SAP Risk Management the finacial risks for the company can be minimized. The use and handling of preferences (including preference calculation), export refunds, letter of credit for import and export business are supported by SAP GTS.
SAP Electronic Compliance Reporting : With SAP Electronic Compliance Reporting the GTS supports the statistical reports to the authorities, which must be delivered for an inner european trade. Depending for the country’s authorithy, the data are provided in accordance to their specified data formats
Question 13. What Is The Difference Between (a/c Payable / Receivable ) And ( Bills Payable / Receivable )?
- Accounts Payable – Amounts payable to the Suppliers/Vendors/Creditors. The accounting group can also be called as Sundry Creditors. This is Current Liability.
- Accounts Receivable – Amounts receivable from the Customers/Debtors. The accounting group can also be called as Sundry Debtors. This is Current Asset.
- Bills Payable – Bills of Exchange drawn by Creditors/Suppliers on the company and is a Current Liability.
- Bills Receivable – Bills of Exchange drawn by a company on its Customers/Debtors and is a Current Asset.
Question 14. What Are The Benefits Of Sap Gts?
Benefits of SAP GTS:
- Ensure vigilant compliance with trade regulations
- Mitigate risks of huge fines and penalties
- Avoid costly shipment delays at borders and customs
- Quick implementation
- Lower IT maintenance costs
- Faster Communication with customs
- Lot of return of investment
Question 15. What Are The Reports Available To Evaluate And Analyze Data For Any Of The Services In Sap Gtc?
Using the following reports that are available, you can evaluate and analyze data for any of the services you use in SAP GTS:
- Imports by product
- Imports by country
- Import analysis
- Imports by office of entry or destination
- Comparison of imports between transit and customs processing document items
- Exports by product
- Exports by country
- Export analysis
- Export by customs office
- Comparison of exports between transit and customs document items
- Savings from bonded warehouse
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