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ExpertLecture_PROCOM_Unit_4_Lesson_5_.mp4

Welcome to this lesson — "Implementing Substance Volume Tracking." So far in this course, we have focused on whether a product can be sold in a specific market. In this lesson, we look at a related but distinct compliance obligation: monitoring how much of a regulated substance a company is handling. This is the domain of Substance Volume Tracking — and as we will see, getting it wrong can have serious consequences for business operations. Substance Volume Tracking is a legal and regulatory process that requires organizations to monitor and record the quantities of specific hazardous chemicals and regulated substances they purchase, import, produce, sell, or export. The reason this matters becomes clear when you look at two major examples. Under EU REACH and Korean REACH, chemical registration is required once a substance is handled at or above one tonne per year — whether it appears in chemicals, mixtures, or articles. Under Toxic Substances Control Act in the United States, companies face strict tracking and reporting obligations for chemical imports and production. Both regulations set thresholds — and crossing those thresholds without proper registration or reporting can result in serious penalties. The practical challenge is that substance volumes accumulate across many transactions — purchases, production runs, outbound deliveries — over a full calendar year. Without a system that automatically tracks and aggregates these volumes in real time, companies risk exceeding thresholds without realizing it until it is too late. As the slide notes: inaccurate tracking causes missed deadlines and severe non-compliance, risking halted business operations. Meeting Substance Volume Tracking requirements is not a simple task. It requires companies to perform these interconnected activities. It all starts with analyzing product data. Before any volume can be tracked, a company needs to know exactly which regulated substances are contained in each of its products, and in what concentrations. This means mapping precise chemical compositions to the substances covered by each regulation. Without this foundational data, there is nothing meaningful to track. From there, companies need to track material flows. Regulated substances move through operations in many ways — raw materials coming in through purchasing, substances consumed or produced during manufacturing, and products leaving through sales or export. All of these movements need to be captured and linked to the substances they contain, requiring tight synchronization between compliance data and the actual transactions happening across the business. The tracked movements then need to be aggregated into cumulative volumes per substance, per legal entity, over the applicable tracking period. This aggregation has to be accurate and continuously updated — because regulatory thresholds apply to the total handled quantity over time, not to individual transactions. With volumes accumulating, companies need to actively monitor thresholds and set up early warnings — knowing well in advance when they are approaching a regulatory limit, not just when they have already crossed it. This gives compliance teams time to act, whether that means adjusting purchasing plans, initiating registration procedures, or flagging upcoming obligations. And when a legal limit is reached, companies must be able to stop the relevant business transactions immediately — preventing further non-compliant activity while the situation is assessed and resolved. Now, let us look at how Substance Volume Tracking is implemented in SAP S/4HANA for Product Compliance. The core principle is automation. Rather than requiring compliance specialists to manually collect and add up volumes from across the business, the system automatically tracks substance volumes by evaluating the relevant business documents — purchase orders, production orders, and sales orders. This process can be triggered initially for a baseline calculation, run periodically on a scheduled basis, or executed event-based as individual transactions are posted. A key part of what makes this work is how the system handles materials and products. It automatically breaks down materials and products into their constituent substances — using the composition data maintained in the compliance view. Where a regulation specifically requires it, the system can also break down polymers into their monomers, ensuring that the tracked volumes reflect the actual regulated substances rather than just the parent material. Companies can also flexibly define the thresholds that apply for each individual regulation — since different regulations set different limits for different substances. These thresholds form the basis against which accumulated volumes are continuously measured. There is also an important edge case that the system handles: in some scenarios, products delivered to bonded warehouses need to be excluded from substance import volumes. This action can be configured in the system, ensuring that substances in customs-controlled storage are not incorrectly counted toward regulatory thresholds. Looking ahead, SAP plans to extend this capability further — with features that will warn users proactively before a threshold is exceeded and that can even automatically block business processes if a legal limit is reached. Now, let us see Substance Volume Tracking in action. In the following demo, we will navigate to the Monitor Substance Volumes app, explore the substance volume overview, drill down into a specific substance and trace the volumes all the way back to the underlying business documents. From the Home page, we navigate to the "Master Data – Product Compliance" tab and open the "Monitor Substance Volumes" app. In the main view, we see a list of regulated substances tracked for the current period. For each substance, the app shows which compliance requirement it is being tracked against — in this case EU-REACH Registration Status — along with the relevant legal entity, the total substance volume handled in kilograms, and the accumulated percentage of the regulatory threshold. This overview gives product stewardship specialists an immediate sense of where threshold-relevant situations exist. Clicking into a specific substance, we can switch between two detail views: "Substance Volume by Month and Scenario" — showing how volumes accumulate over time and across different calculation scenarios — and "Substance Volume by Product" — showing which products in the portfolio contribute to the tracked volume of that substance. Together, these views give full transparency into both the time dimension and the product dimension of substance volume tracking. Finally, from the "Substance Volume by Month and Scenario" view, we can select a specific combination of time period and scenario — and the system directly navigates to the underlying business documents that recorded that volume, such as the purchase order in this case. This traceability from aggregated substance volume all the way back to the originating transactions is what makes the monitoring truly actionable. Before we close, here are the key things to take away from this lesson: Substance Volume Tracking is a legal obligation under regulations like EU REACH, K-REACH, and US TSCA — requiring companies to monitor the quantities of regulated substances they handle across their operations. Compliance requires interconnected activities, analyzing product data, tracking material flows, aggregating volumes, monitoring thresholds, and — where thresholds are exceeded — initiating warning and process blocks. SAP S/4HANA for Product Compliance automates volume accumulation by capturing substance quantities directly from ERP transactions — eliminating manual tracking and reducing the risk of errors. The Monitor Substance Volumes app provides full transparency — from the aggregated substance volume at portfolio level, down to the individual business documents that recorded each quantity. That brings us to the end of this lesson and to the end of the "Assessing Product Marketability" unit. You now have a comprehensive understanding of the full product marketability lifecycle — from compliance data setup and automated assessment, through market decisions and value chain integration, to substance volume tracking. In the next unit, we will shift our focus to another major area of product compliance: Handling Dangerous Goods. We will see you there!

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Implementing Substance Volume Tracking

bookmap_Introducing_Product_Compliance_en-US_learning-sap-com_lsc-prod.zip (MMCP-DROPZONE) - 2026-09-22T16:02:24.000Z

<div id="content"><p tabindex="0"></p><p tabindex="0"></p><div class="kalturaVideoLessonWrapper"><div id="1_1tnf27t5" data-testid="video" class="kalturaVideoLessonContainer" aria-label=""></div></div><p tabindex="0"><strong>Key takeaways</strong></p><ul style="list-style-type:disc"><li tabindex="0">Substance Volume Tracking is a legal obligation under regulations like EU REACH, K-REACH, and US TSCA — requiring companies to monitor the quantities of regulated substances they handle across their operations.</li><li tabindex="0">Compliance requires interconnected activities, analyzing product data, tracking material flows, aggregating volumes, monitoring thresholds, and — where thresholds are exceeded — initiating warning and process blocks.</li><li tabindex="0">SAP S/4HANA for Product Compliance automates volume accumulation by capturing substance quantities directly from ERP transactions — eliminating manual tracking and reducing the risk of errors.</li><li tabindex="0">The Monitor Substance Volumes app provides full transparency — from the aggregated substance volume at portfolio level, down to the individual business documents that recorded each quantity.</li></ul></div>

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