Setting up Supplier’s Declaration Management

Objectives

After completing this lesson, you will be able to:

  • Set up supplier’s declaration management

Managing Supplier’s Declarations in SAP GTS

In a supplier’s declaration, suppliers make a statement about the preferential origin of their goods in accordance with the prescribed wording of Commission Implementing Regulation (EU) 2015/2447. The requesting exporter primarily uses this declaration as a previous document when issuing proofs of preferential origin such as a movement certificate EUR.1 or invoice declaration.

If you resell purchased goods unchanged, the supplier's declaration you received is the basis for issuing a supplier’s declaration to your customer. As a rule, supplier’s declarations are used in intra-Union trade. For cumulation purposes, however, they can also be used in the trade with certain third countries.

A long-term supplier's declaration is valid for a maximum of 24 months from the start date of its validity period. It can also be made out retroactively for goods delivered before the making out of the declaration for a validity period of up to 12 months prior to the date of issue. In this case, the validity period shall end no later than six months after the date of issue.

To generate proposals for requesting supplier's declarations in SAP GTS, you can use the Creation of LTSD Requests transaction (transaction code /SAPSLL/LTSDREQ_1). However, the /SAPSLL/CREATE_LTSD_REQUESTS program is intended for background processing.

If you have already entered supplier's declarations in SAP GTS, you can use the annual run instead of evaluating system proposals for the following years. You schedule the Annual Creation of LTSD Requests program (program name /SAPSLL/CREATE_ANNUAL_LTSD_REQ) for background processing or execute it in dialog mode using the transaction of the same name (transaction code /SAPSLL/LTSDREQ_2). The annual run program uses the supplier's declarations entered in the current fiscal year as the basis for requesting supplier's declarations for the following year.

To generate proposals for issuing supplier's declarations, you can use the Issue LTSD transaction (transaction code /SAPSLL/LTSDOUT_1). The /SAPSLL/CREATE_LTSD_OUTBOUND program is intended for background processing.

If you have already issued supplier's declarations in the previous year, you can use the annual run instead of evaluating system proposals for the following years. You schedule the Annual Issue of LTSDs program (program name /SAPSLL/CREATE_ANNUAL_LTSD_OUT) for background processing or execute it in dialog mode using the transaction Annual Issue of LTSDs (transaction code /SAPSLL/LTSDOUT_2).

Documents of Origin

In SAP GTS, supplier’s declarations are documents of origin. These documents store the essential information contained in the actual (paper) declaration. Documents of origin can be created with or without reference to requests.

Before you can create supplier’s declarations in your SAP GTS system, you first have to define at least one document of origin type as a framework for the maintenance of individual documents (menu path in Customizing: SAP Global Trade Services, edition for SAP HANAPreference ManagementSupplier's DeclarationsDocuments of OriginDefine Documents of Origin).

On document of origin type level, you map the requirements of Article 62 (2) of Implementing Regulation (EU) 2015/2447 (referred to as UCC IA in this lesson) with regard to the validity period of long-term supplier’s declarations. In the Assign Country Groups folder in the dialog structure of the Define Long-Term Supplier’s Declaration Types view, you enter a country group for the EU. In the Assign Preference Agreement folder, you enter all relevant preferential agreements that the EU has concluded with third countries.

You can also map the origin declaration defined in the protocol on rules of origin and origin procedures to the CETA, as well as the statement on origin defined in the EU-Japan EPA in the form of documents of origin types. Based on these definitions, you can request, receive, and issue origin declarations and statements on origin using your SAP GTS system.

You can influence the request, issue, and subsequent management of supplier's declarations within certain limits in Customizing for Preference Management (menu path: SAP Global Trade Services, edition for SAP HANAPreference ManagementSupplier's DeclarationsDefine Settings for the LTSD Process).

The basis for issuing the text of the supplier's declaration with product lists and a letter is the assignment of the appropriate action profiles and text modules to the administrative unit in Customizing (menu path: SAP Global Trade Services, edition for SAP HANAPreference ManagementSupplier’s DeclarationsOutput ManagementAssign Action Profiles and Assign Text Modules). Delivery Customizing for SAP GTS provides two action profiles for long-term supplier’s declarations:

  • LLS_PRE_LTSD_EU_REQUEST Request Long-Term Supplier's Declaration (EU)

  • LLS_PRE_LTSD_EU_ISSUE Issue Long-Term Supplier's Declaration (EU)

Note
At the time of publication of this training, SAP GTS did not provide action profiles for the request or issue of origin declarations and statements on origin respectively.

The communication medium (mail or e-mail) depends on the administrative unit requesting or issuing the supplier’s declarations. This default value can be changed for individual supplier's in the Manage Preference Properties - Suppliers app.

To use the communication mode e-mail, you must create the recipients of the e-mails as business partners of the type "Person" in the business partner role "Respons. for Preference" (BUP008) and enter the e-mail addresses in the master data of these business partners. With the relationship category BUR008 (for the employee of a supplier) or SLLBUR (for the employee of a customer, description in both cases Is the Employee Responsible for Preference), you can link the business partner of the e-mail recipient with the business partner of the supplier or customer using the Relationships button.

Revocation of Supplier’s Declarations

The UCC-IA in article 62 (3) obliges the supplier to inform all affected economic operators immediately if the long-term supplier's declaration is invalid for one or more consignments of goods. For example, if you have sold a product produced in-house for which you have issued a long-term supplier's declaration to the recipient at a price below the threshold value, you have to revoke the supplier's declaration immediately because the product has lost its originating status.

On the other hand, you may have received a supplier's declaration for goods with preferential origin for a merchandise after a longer waiting time. You now want to inform your customers of this turn for the better in a new supplier's declaration.

SAP GTS enables the largely automated revocation or re-issue of supplier's declarations that have already been issued and are still valid scheduling the Processing of Triggers for the Creation of Reissue Reasons program (/SAPSLL/PROCESS_RIR_TRIGGERS).

System proposals for the revocation or re-issue of supplier's declarations are created in different ways:

  • The net price of a billing item falls below the threshold value of the product in the validity period of the supplier's declaration for this product.

  • Changes to the BOM, the procurement type, or the value of the components change the threshold value of a product in a new preference determination in such a way that the supplier's declarations issued for the product no longer apply.

  • A change in the preference status of a product after a supplier's declaration has been issued also results in the creation of a re-issue reason.

  • Finally, manual processing of a product in the Preference Statement view triggers the creation of a system proposal for the re-issue of all supplier’s declarations concerned.

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