In the beginning was the Foreign Trade
Historically, the Globald Trade Services solution - GTS for short - developed to meet foreign trade requirements that could not be covered by the SD-FT/MM-FT module. The FT - Foreign Trade - module integrated into the ERP was developed in the 90's, when foreign trade regulations were not so strict and complex. Accordingly, the functionalities are not so extensive. At the latest after 9/11, the requirements for foreign trade changed and a new solution was needed. With GTS, SAP launched a new system that met the new needs. Nevertheless, SAP also continued to develop the SD-FT/MM-FT module so that all legal requirements could be implemented in an integrated manner with both solutions - SD-FT/MM-FT and GTS.
Why then a new solution?
With GTS, SAP was striving on the one hand to make business processes more efficient. On the other hand, the security of the processes, in the sense of avoiding human errors, was in the foreground. GTS offers a fully comprehensive solution in both ERP and S/4 HANA, which also provides the connection to ATLAS and thus enables communication with customs. GTS can be connected to several systems as a central foreign trade system, since it is an independent system that is not part of a core, like the SD-FT module.
International Trade in S/4HANA
The introduction of S/4HANA is changing process handling in many areas. Foreign trade processing is no exception. International Trade in the core application of S/4HANA will be called International Trade in the future and will completely replace the SD-FT component from ERP by 2027 at the latest, as ECC maintenance will be discontinued in that year.
International Trade covers all business-critical processes, but the master data is no longer as comprehensive as it was in GTS. For example, in the material master, preference processing and origin of goods are no longer available. Customs tariff numbers can still be maintained, but only via FIORI apps.
Whereas in GTS it was still possible to maintain a lot of foreign trade data in the billing document, this option is no longer available at document level under International Trade:
Some maintenance options remain in the delivery note, but to a reduced extent:
FIORI is the new GUI
Another feature of International Trade in S/4HANA is the use of FIORI apps for many processes. These are clear and provide a consistent picture for the end user, as more and more companies switch to using FIORI in the future. Due to the already familiar structures from the FIORI apps, this also leads to a reduction in training time, as the end user does not have to use GUI and FIORI interfaces. Some functions, such as the administration of customs tariff numbers, only take place via FIORI; a GUI transaction for this is no longer available.
Although GTS also recognizes individual FIORI apps, the scope of applications in GTS is small and the majority of processes are still handled in GUI transactions.
Advantages of International Trade
- In contrast to the standalone system GTS, International Trade is directly integrated into S/4HANA, so that no further interfaces are necessary here. Thus, International Trade eliminates a major source of errors and a maintenance area.
- Deeper integration into the MM and SD modules, as the data does not have to be transported from S/4HANA first but the modules interlock within one system.
- Since the data does not have to be transferred to another system first, Intrastat reporting in International Trade runs much faster and is more accurate compared to GTS.
- Since International Trade is integrated into S/4HANA and does not have to be licensed separately, the solution scores points compared to GTS, for which separate license fees are incurred as a separate system.
Disadvantages of International Trade
Compared to GTS, International Trade is unfortunately missing some important functions:
- No preference processing: not all customers use this option. However, for those who have it in use, one important functionality is missing: that of determining the origin of goods. This option leads to a competitive advantage, as free trade agreements can be used with the origin of goods.
- Hardly any foreign trade data in the documents: As mentioned above, the maintenance of foreign trade data at document level is no longer possible to the usual extent, only significantly reduced.
- No communication with customs: This is omitted in comparison to GTS. However, those who have been using the Foreign Trade module up to now will not miss this function: It is not available in the FT module.
Advantages of GTS
GTS was introduced in 2000 in response to the introduction of electronic import and export declarations and has been continuously improved and expanded since then. Today, GTS is a very mature system, leading in its depth of foreign trade processing.
However, probably two of the biggest advantages of GTS over the FT module and International Trade are communication with customs and preference calculation:
Other significant advantages in GTS are
- more detailed classification: Classification in GTS is generally more flexible and comprehensive. The tariff classification can be mapped at document level.
- the sanctions list check: this is also possible without an online SPL connection. The SPL check can be defined as required. Own sanction lists can be created and used.
- GTS is a central point for logistical data from various ERP and transport management systems, where, for example, import and export declarations are created and communication with customs authorities is prepared. This means that data is only changed once at the local point and not individually in each connected system.
With the replacement of the FT module in 2027, two foreign trade solutions will be available to users in the future: GTS and International Trade. Although GTS is significantly more comprehensive, for many companies that do not have an overly complex or distinctive foreign trade area, International Trade may well be sufficient.
Summary
In summary, two SAP solutions will be available for foreign trade processing in the future: SAP GTS and International Trade in S/4HANA, the FT module will be replaced by 2027.
The GTS solution definitely offers the greatest range of functions. However, for many companies that do not have an overly complex or distinctive foreign trade area, International Trade may well be sufficient.
