SAP GTS - Sanctioned Party Listing

01/11/2011

Joffy John
joffy.john@tcs.com

TCS Public

SPL Listing

What is Sanctioned Party Listing of SAP GTS module?

SAP Global Trade Services (SAP GTS) help companies manage all the complexities of global
trade including full regulatory compliance. It automates global trade processes and
enables a company to manage large numbers of business partners, and high volumes of
documents.

SAP Global Trade Services (SAP GTS) consists of three sub solutions:

1. SAP Compliance Management,

2. SAP Customs Management
3. SAP Risk Management.

This document covers Sanctioned Party Listing in compliance module in GTS.

A sanctioned party list contains a list of persons and companies with whom trade must
NOT be conducted by law. These sanctioned party lists are issued by government agencies
and can be obtained from data providers. All traders must comply with these lists.
The Sanctioned Party List (SPL) Screening service in SAP GTS, can be used to check
business partners addresses (for example, the ship-to party) automatically against the
sanctioned party lists before goods which are exported. It is a system-independent
solution that performs and logs the SPL check and is fully integrated into the complete
business process.
SPL master data is maintained, it can begin setting up the screening process. SPL checks
can be peformed depending on business partners either using the dialog or in the
background (batch).
a. If we decide on dialog SPL screening, the system performs the screening online as
soon as we create a document in the feeder system, for example a purchase order or a
sales order. The system returns the screening results immediately. The feeder system waits
for the SPL screening results before the items are actually posted. If the results are
negative, the process is terminated and the user cannot perform any more business
transactions in the feeder system. The advantage of the dialog variant is the result the
systems displays after performing the SPL screening.
b. If we decide on SPL screening as batch, the system performs the screening identical
to the dialog variant. However, the system performs the screening in the background and
does not display the screening results after performing the SPL screening.
SPL can be performed on periodic checks or on a spot check basis, for example, quarterly,
to compare our entire business partner and document data with all the SPL data.
SPL enables system to avoid in making repeated hits on the same business partner
address. This can be done by placing specific business partners on Positive or Negative lists

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to prevent the same blocks recurring. In addition, the system automatically recognizes
business partners that have been released manually in the Monitoring section of the SPL
cockpit. Provided none of the SPL or business partner master data has been changed, the
system remembers that they have been manually released and does not block the same
business partner again.
SPL enables us to check multiple addresses for business partners against the SPL master
data. If we assign more than one address to a business partner in our feeder system, it
requires multiple address screening. SAP GTS blocks the document in the feeder system
from further processing, if the screening result of the business partner address in the
document is positive.
We can integrate SPL screening with Logistics (Sales & Distribution and Materials
Management) with SPL Check, we can monitor the blocked business partners and
documents and use the audit trail to provide the authorities with the relevant proof that
screening has taken place.

GTS Process Flow:

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SPL Master Data

The following are sanctioned party list (SPL) master data:

Sanctioned Party Lists

Business Partner

Comparison Terms

Monitoring Sanctioned Party Lists

Sanctioned Party List Screening Scenarios

SPL Scenario Description

Type of Processing

SPL screening of business partners when the

business partner master data has changed

Asynchronous background processing

SPL screening of document partners when

the business partner master data has
changed

Asynchronous background processing

Periodic SPL screening of business partners

Dialog and batch processing

Periodic SPL screening of document

addresses

Dialog and batch processing

SPL screening of business partners when the

sanctioned party lists have changed

Dialog and batch processing

SPL screening of document partners when

the sanctioned party lists have changed

Dialog and batch processing

Blocked business partner screening when the

business partner master data has changed

Dialog and batch processing

Simulated SPL screening of business partners

No updates written to database

Simulated SPL screening of document

partners

No updates written to database

SPL Screening
When SAP GTS performs SPL checks on business partners and blocks a business partner
due to a match between a text string in the SPL master data and a text string in the
business partner data, we can, if necessary, release the blocked business partner manually.
The basis for a manual release is that the business partner does not appear in an official
sanctioned party list. We can release the business partner in the Monitoring section of the
cockpit by choosing Business Partner Blocked.

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The system recognizes whether the business partner data or SPL data has changed since
the last check. If no changes have been made to the data since the last manual release,
then the system adopts the last decision that we have made and does not block the
business partner that we released manually the last time the SPL check was performed.
Changes to the data since the last SPL check was performed that affect the system reaction
include:

Changes to SPL master data since the last SPL check

Existence of several different SPL entries determined as hits

Changes to the business partner address data since the last SPL check

Changes to Customizing settings

The result is that the system cannot adopt the last decision we made and checks the
business partner against the SPL master data again.
It is possible to perform SPL checks on business partners for whom several addresses are
available in business partner master data. However, we also have the option of making a
setting in Customizing for the SPL Screening service to determine whether a match
between one of several addresses and an SPL entry is sufficient to cause a block or whether
there must be matches between the SPL entry and more than one of the business partner
addresses.
We can also determine which of the addresses we want the system to check in SPL
Screening service.
Once the system outputs results of multiple-address check, we can monitor which of
addresses resulted in a positive match between SPL data and business partner data.

Enhanced Authorization for SPL Screening

The enhanced authorization within the sanctioned party list (SPL) screening functionality
means that we can restrict data maintenance in SPL to specifically selected users that
belong to one foreign trade organization. This is of particular importance in the SPL
Screening Integration with Human Resources scenario due to the fact that there are laws &
regulations for data protection in some countries. The result is that personnel data cannot
be viewed or manipulated by other unauthorized persons. For example, the SPL
screening results of business partners from sensitive countries may only be displayed
and edited by employees who are either form the same country or country group.

SPL Screening with Logistics

The sanctioned party lists are issued by government agencies and can be obtained from
data providers. All traders must comply with these lists. With SAP Global Trade Services we
can implement sanctioned party list (SPL) screening into general logistics processes.
The following activities are performed for SPL screening with Logistics

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SPL Screening when Business Partner Addresses Change

SPL Screening when Document Partner Addresses Change

Periodic Check on Business Partners

Periodic Check when Document Partner Addresses Change

Periodic Check on Business Partner Addresses in Positive/Negative List

SPL Screening of Business Partners When SPL Changes

SPL Screening of Document Partners When SPL Changes

SPL Screening of Blocked Business Partners When Business Partner Master Data
Changes

Simulated SPL Screening of Business Partners

Simulated SPL of Document Partners

Simulated SPL Screening of General Addresses

Releasing Blocked Business Partners

Releasing Blocked Documents

Monitoring SPL Screening using

Monitoring Sanctioned Party Lists

Monitoring Positive/Negative Lists

Monitoring Blocked Business Partners

Monitoring Blocked Documents

Audit Trail

The business partners are transferred as customers or vendors to SAP GTS and are assigned
the role MKK.
Once we have transferred all relevant business partners to SAP GTS, we can perform an SPL
check on all newly created business partners.

SPL Checks against the Relevant Business Partners

At the beginning of the SPL check, SAP GTS applies the status Not Checked to each
Financial Accounting business partner. SAP GTS checks the business partner addresses
against the address data maintained in the SPL lists. Following the check, those business
partners without any data that matches the data in the SPL lists are assigned the status
Released. Those business partners with data that matches the data in the SPL lists are
assigned the status Blocked.
Synchronous Checks of the Business Partners Against SPL Data During the Payment

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Transactions. We can perform the SPL screening synchronously by triggering the screening
manually or asynchronously by planning as a periodic job to run in the background.
Generally, we use synchronous screening for both incoming and outgoing payment
transactions.
Any business partners that are blocked by the system due to matches between the data in
the business partner address data and the SPL data, and which do not need to remain
blocked, can be released manually. Another option to ensure that we do not repeatedly
have to release business partners or documents manually is to set those business partners
on the positive list.

SPL Checks against Account Holders

Every business partner may have one or more bank accounts and each bank account can
have one or more account holder. The account holder is also checked against the
sanctioned party lists.
SPL Checks against Notes to Payees
In addition, the individual payments may have a note to payee. As banks check these notes
to payees, they too are checked against the sanctioned party lists.

Monitoring of SPL Check Results

We can use the monitoring functions to get an overview of all blocked business partners
and those we place either on the positive and negative list. In addition, the results of the
SPL checks are logged and archived in accordance with legal requirements.

Manual Post-Processing of the Checked Business Partners

We can process the payment transactions following SPL checks that did not result in any
blocked business partners. However, if a payment transaction in FI-CA is blocked due to a
blocked business partner in SAP GTS, it is possible to access the business partner from the
log of the SPL check by Simulating SPL checks.

Configuration of Sanction Party List Screening

For this we have to maintain the settings in SAP GTS.
1. Settings at SPRO level GTS SAP Compliance Management Sanctioned Party List
Screening service.

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2. To Activate Business Partner & Business Partner role level maintain the below settings.

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3. Next is to assign determination procedure for Active Legal regulation

4. To activate Legal Regulation at country and country group level, we have to Execute
Activate Legal regulation & maintain entries as shown in below screen
shot.

5. To Define control procedure for address comparison

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6. Now press folder Detail Control and input the fields we would like to check for
address.

7. And to maintain Address Object for comparison with various fields in address, input
data as shown below.

8. To define "Control Settings for 'Sanctioned Party List Screening' Service press details
button

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SPL Listing

9. Here we can maintain the following settings for Legal regulation pertaining to SPL
screening service in various tabs:
1. Control setting for "SPL Service
2. Document Control
3. Scope of Check
4. Audit
5. System Control
6. Workflow
Creation of SPL Master Data as shown below

10. To maintain Master Data for SPL use Transaction code - /n/sapsll/menu_legal SAP
Compliance Management Sanctioned Party List Screening

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SPL Listing

11.

Edit

/Creations

of

SPL

Provide

Legal

Regulation

&

Data

Provider.

12. To load SPL Data using XML file format, its in Master Data Tab Sanctioned Party
Lists
Load
Sanct.
Party
Lists
from
XML
File

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SPL Listing

13. Now input details like Legal regulation, Type of list and Data provide. Apart from this
specify the data file path to upload it into GTS.

14. We can see the SPL uploading log in Master Data Sanctioned Party Lists Search
Upload Logs.
15. To add the Business Partners required during creation of SPL screening like Data
Provider etc we can use Master Data Business Partners Edit Business Partners.

16. To monitor the SPL details for Change history, Expiry details etc follow the below path.

17. For settings of SPL in SPLLogistics Asynchronous Check Check Business Partner
address & execute.

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SPL Listing

18. Input the data and execute we will get the below screen as per selection of data
earlier.

19. In the above screen shot, we can also see various options like Lock or Release a
Business Partner as well as put them in Positive or Negative list. We can also use Mass
Release strategy for releasing Business Partners.

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SPL Listing

20. To check the changes in Sanctioned party address, we can use option Check Document
Address

21. Input the values and press execute icon. It will show results only, if there are any
changes in Business Partner address.

22. To Monitor the Business Partner for status like Blocked, Positive and Negative List
execute the necessary option

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23. Example for Checking and releasing the BLOCKED Business Partner and to release the
same select the partner and press
.

24. To display blocked documents at various levels and to MANUALLY RELEASE A

BLOCKED document. Execute the required option from below.

25. To MANUALLY RELEASE a BLOCKED document, execute an option from above menu &
input details in next screen & execute. A new screen details will come now select the
.
required document and press

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