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Chr_Vogler
Product and Topic Expert
Product and Topic Expert
Product Compliance allows your organizations to manage regulatory and sustainability requirements, track volumes, classify products, manage compliance, and package, and transport hazardous materials with accurate safety data sheets and labeling.

In the following blog – part 1, I will give you an engineering expert view of some selected highlights of our SAP S/4HANA Cloud, private edition, and SAP S/4HANA for Product Compliance | 2022 release, to show you how you can improve the product marketability and chemical compliance.

The blog is built as a series of 3 parts and presents the key highlights:

Introduction: Product Marketability and Chemical Compliance


Whenever a company produces or sells a product, the company must ensure that the product meets all regulations: laws, industry standards, and company standards.

With Product Marketability and Chemical Compliance, you can manage chemical compliance for your products across your organization. It supports you in ensuring the marketability and compliance of products to secure the right to market, sell, and ship products throughout the product lifecycle.

Product Marketability and Chemical Compliance is integrated into checks in sales and delivery processes to prevent products from being sold into markets that are restricted or not assessed.

Product marketability regulatory content update


With this new 2022 release, SAP delivers new and updated compliance requirements containing marketability information.

The compliance requirements delivered as content by SAP must be activated before you can use them in your dangerous good-relevant business processes.

You can activate the compliance requirements using the Activate Compliance Requirements - Product Marketability app. With this app and with the Manage Compliance Requirements - Product Marketability app, you can also view the data contained in the SAP-delivered compliance requirements.

After you have activated the compliance requirements, assign them to dangerous goods-relevant compliance purposes using the Manage Compliance Purposes app.


Picture 1: Use embedded and up-to-date regulatory content to ensure proper and up-to-date product declarations.

With this new release we delivered 207 compliance requirements for product marketability:

  • 140 with regulatory content

  • 67 for documentation only


Here is a list of some of the new and updated compliance requirement versions included in this release:

  • EU Export Control Regime (1C350+1C450) (Jun 2021)

  • EU Poison Centre Notification (Nov 2020)

  • CA CEPA SNAc Status (Apr 2022)

  • CA DSL+NDSL Status (Apr 2022)

  • CN IECSC Status (Mar 2022)

  • EU ECHA CoRAP Status (Apr 2022)

  • EU REACH Annex XIV Status (Apr 2022)

  • EU REACH Annex XVII Status (Dec 2021)

  • CN Precursor Chemicals (Aug 2021)

  • EU REACH SVHC Status (Jan 2022)

  • HK Controlled Chemicals Status (Mar 2022

  • JP CSCL Class 1 and 2 Status (Nov 2021)

  • JP CSCL Exempt Status (Mar 2022)

  • JP CSCL PACS Status (Apr 2022)

  • JP ENCS Status (Apr 2022)

  • JP ISHA Status (Mar 2022)

  • KR CCA Restricted List Status (Dec 2021)

  • KR CCA Toxic List Status (Dec 2021)

  • KR Narcotics and Psychotropics (Dec 2021)

  • MY Poisons List (Nov 2021)

  • NL ZZS List Status (Apr 2022)

  • NO Priority Substances (Nov 2021)

  • NZ NZIOC Status (Dec 2021)

  • PH Chemical Control Orders (Oct 2021)

  • RU Drug Precursors, List IV (Dec 2021)

  • Substance List Check: JP PDSCL Status (Jun 2020)

  • SV Drug Precursors (Feb 2022)

  • TH Narcotic Drugs (Feb 2022)

  • TH Psychotropic Substances (Nov 2021)

  • TW TCSCA Chemical Registration Phase 2 (Apr 2022)

  • TW TCSI Status (Apr 2022)

  • US California SCPR (Apr 2022)

  • US California Proposition 65 Status (Feb 2022)

  • US DEA Drug Precursors (Nov 2021)

  • US TSCA Export Notification (Dec 2021)

  • US TSCA Inventory Status (Feb 2022)

  • US TSCA SNUR Status (Dec 2021)

  • World GADSL Status (Feb 2022)

  • World SIN List Status (Feb 2022)

  • World UN Chemical Weapons Convention (Jan 2022)

  • World UN Drug Precursors (Jan 2022)


For more information about Product Marketability Regulatory Content Update, see Product Assistance.

 

Management of legal entities and legal entity mappings for substance volume tracking


Business Background


In many countries, regulations state that, above a certain quantity of chemicals and other hazardous substances, you must register with the authorities the maximum quantities of these substances that you plan to purchase, import, produce, sell, or export within a certain period. Substance volume tracking helps you to comply with the relevant regulations by recording the quantities of substances needing to be tracked that you purchase, import, produce, sell, or export. By comparing the recorded quantities with the limit values, the system can warn you in good time before a limit value is exceeded; if a limit value is exceeded, the system can also block the respective business process. This means you can ensure that you stay below the quantity limits.

Management of Legal Entities


In substance volume tracking, the legal entity is used as an aggregation criterion for substance volumes. While processing logistics documents and material documents, the system uses defined mapping to determine the legal entity for which substance volumes are to be tracked and aggregated. The aggregated substance volumes are then compared with the thresholds of the relevant compliance requirements to calculate the substance volume tracking status. The master data specialist for product compliance can monitor the aggregated substance volumes in the Monitor Substance Volumes app.

With this 2022 release, you can create and edit legal entities in your organization in the Manage Legal Entities app. These legal entities can later be mapped to a combination of a compliance requirement, business process scenario, and company code or plant in the Manage Legal Entity Mappings app. In substance volume tracking, the legal entity is used as an aggregation criterion for substance volumes.


Picture 2: Ensure reliable handling of changes to the organizational structure that are relevant for product compliance processes.

Management of Legal Entity Mappings


With this 2022 release, you can map legal entities to a combination of a compliance requirement, business process scenario, and company code or plant in the Manage Legal Entity Mappings app. In addition, you can change the legal entity in a mapping from a certain future date and check if the mapping is used in substance volume tracking. The legal entity mappings to the respective compliance requirements substitute your existing organizational structure so that the system can later assign the calculated substance volumes to the correct legal entities.


Picture 3: Ensure accurate tracking of substance volumes based on corrected legal entity mapping.

For more information about Monitor Substance Volumes, see Product Assistance.

 

Management of retracking of substance volumes


Business Background


As a master data specialist for product compliance, you can use this app to decide if a retracking of already calculated substance volumes is needed due to a released change in product compliance-related data that is relevant for substance volume tracking.

Key features


With this new 2022 release, you can make decisions on the need for retracking of already calculated substance volumes due to a released change in an object in Product Compliance that is relevant for substance volume tracking. You can also specify how far in the past you want to retract the substance volumes.

You can use this Manage Retracking of Substance Volumes app to do the following:

  • Decide case by case if retracking of substance volumes is needed.

  • View details about already tracked substance volumes for the changed object.

  • View details about the made retracking decision such as the person who made it and when, as well as comments.

  • Accept or reject multiple retracking items all at once.



Picture 4: Ensure accurate tracking of substance volumes when releasing a new composition.

 

Ability to exclude companies and plants from substance volume tracking


Business Background


There might be plant codes in the supply chain system that are leased, toller, or virtual, and in some of these cases, you may not want to track material movements for those plant codes. As a product stewardship specialist for product compliance, you can use this app to exclude material movements (to certain plants) from substance volume tracking, for a specific business process and a specific period.

Key features


With this new 2022 release, you can exclude companies and plants from substance volume tracking in the Exclude Companies and Plants app. These exclusions can be valid for a specific business process and a specific period.

You can use this app to do the following:

  • Search for excluded companies and plants.

  • View or edit company and plant status.

  • Create new entries and manage their data.

  • Export search results to a spreadsheet format (.XLSX).



Picture 5: New application to exclude certain companies and plants from substance volume tracking for a specific business process.

 

New SAP Fiori app for poison center notifications management


Business Background


With the poison centre notification app, you as a product stewardship specialist want to support poison centres. You can choose the poison centre notification details and release the assessment for use in reports and follow-on processes. You can do this for both unpackaged products and raw materials by identifying which products require this. This is to assist in the over 600,000 calls to poison centres in Europe each year. To improve the identification of the substances and mixtures and ensure the proper treatment.

In Europe, producers, and importers of dangerous chemical mixtures to provide information relating to emergency health response and preventative measures. The Unique Formula Identifier (UFI) is an alphanumeric code created by the UFI generator provided by the European Chemical Agency. The information includes a product category that describes the intended use. That intended use information is from the European product categorization system provided by the European Chemical Agency.

As a product stewardship specialist, you want to add the purpose to sell industrial chemicals within the European Union. When you do the compliance assessments for the product, you decide whether or not a poison centre notification is applicable. If it’s required, then you need to generate a UFI and make a dossier for the poison centre notification to the European Chemical Agency. After submission, the UFI can be printed on labels and safety data sheets.

For unpackaged products, the UFI can be printed on the safety data sheet instead of the EU label.

Key features


With this new SAP Fiori app Manage Poison Centre Notification, you can assess an unpackaged product or raw material that you selected in the Manage Basic Compliance Data - Unpackaged Products app against a compliance requirement for Poison Centre Notification. Within the assessment, you can specify the data required on a safety data sheet or labels. You can update the data to ensure that it's current and the product stays compliant. You can confirm the Regulation Status and add a Unique Formula Identifier.

This app provides the following key features:

  • Assess products and indicate whether European poison center notification is applicable

  • Assign unique formula identifiers to unpackaged products and raw materials

  • Release the assessment for subsequent processes such as safety data sheet (SDS) shipments and labeling

  • Assign market placement countries for unique formula identifiers

  • Pick market placement countries based on applicability area of compliance requirement – for example, EU Poison Center Notification (November 2020)

  • Help ensure that only registered unique formula identifiers are consumed by subsequent processes such as SDS shipments and labeling.



Picture 6: Provide the best assistance to save people's lives through fast and intuitive identification of substances and mixtures.

 

Integrated sales order compliance check for ship-to-customer information


Background


If the market assessment status for the sale of the compliance-relevant product that is ordered to a particular ship-to country/region is Allowed with Restriction, the customer compliance check is carried out as part of the product marketability check for the sales order. The check begins by finding the compliance requirement versions based on the Customer Compliance Check compliance pattern that applies to the ship-to country/region of the customer. Then the check finds the released marketability assessments at the unpackaged product level with the marketability status Customer Assessment Required for the relevant country/region. If the required marketability assessment isn’t available in the system, a compliance request for a customer assessment appears in the worklist for the product stewardship specialist in the Process Requests from Logistics app. The product stewardship specialist processes the request and sets the risk level of the product. Products with a high or medium risk level require a customer assessment.

From this information, the check finds the relevant chemical customer material, which refers to the product that is shipped to a particular customer. The system checks if the chemical customer material has been assessed as Compliant against the relevant compliance requirement versions. If so, and if the marketability assessments are still up to date (no older than 24 months), the product stewardship specialist can set the market assessment status to Allowed, which removes the block from the sales order.

In the Manage Customer Compliance - For Products app, the product stewardship specialist can additionally set chemical customer materials to Outdated.

Key features


This feature integrates a check for customer compliance into subsequent sales orders placed by a known customer. To aid in the approval process that the product stewardship specialist must carry out, this feature includes the new apps Assess Marketability Requirements - For Customers and Manage Customer Compliance - For Products.


Picture 7: Ensure customer compliance with product handling.

For more information about Marketability Assessment - Customer Compliance Check, see Product Assistance.

 

Product compliance integration – supplier check for purchase contracts


Background


In Product Compliance, you can assess suppliers and set the status to indicate if a supplier is approved or blocked. This information is used in a check that considers the status of the supplier assessment for compliance-relevant products during the creation of the purchasing contract. New fields on the item level and on the header level indicate the status of the check.

If a product has been marked as relevant for compliance in the product master, the system checks the supplier assessment as the purchasing contract is created or edited. Depending on the outcome of this check, the system issues warnings and blocks the document.

If the status of the item is set to Blocked – By Supplier, the purchaser gets a message to block the item manually to prevent it from further processing in a purchase order. For an item in status Blocked – Decision Pending, a compliance request for the product stewardship specialist is created to check the assessment of the supplier. If the compliance result of the assessment is positive, the document is unblocked.

Key features


With this new 2022 release, a supplier check is now integrated into purchasing contracts.

You can now check all compliance-relevant products to determine whether procurement is allowed through the supplier in question:

  • Execution of the supplier check for purchase contracts

  • Blocking of items in a purchase contract if the supplier is not compliant

  • Addition of the Product Compliance Supplier Check Status field to identify items with issues



Picture 8: Prevent execution of non-compliant procurement processes for all relevant products.

For more information about Supplier Check in Purchasing Documents, see Product Assistance.

 

Compliance requirement support for Brexit and the Northern Ireland Protocol


With this 2022 release, an update of compliance requirements to comply with the Northern Ireland Protocol. This includes support for the inclusion of Northern Ireland in the EU REACH access regulations and UK REACH for access regulations for Great Britain besides Northern Ireland. This feature provides up-to-date information about the requirement for shipping products and materials between the European Union, Northern Ireland, and Great Britain.

Key features

  • Updates to compliance requirements to comply with:

  • Northern Ireland Protocol

  • Terms of the "Brexit" agreement between Great Britain and the European Union

  • Support for the inclusion of Northern Ireland in access regulations for the European Union for registration, evaluation, authorization, and restriction of chemicals (EU REACH)

  • Support for an independent UK REACH for access regulation for the Great Britain market



Picture 9: Get up-to-date information about requirements for shipping products and materials between European Union, Northern Ireland, and Great Britain.

SAP Notes



  • 2885225 - BREXIT: Through the Transition Period and Beyond

  • 3006730 - BREXIT: SAP Product Safety and SAP S/4HANA for Product Compliance Guidance for Brexit and the Northern Ireland Protocol


 

Product compliance integration for advanced intercompany sales process


Advanced Intercompany Sales


Intercompany sales processes allow two affiliated companies and an external customer to participate in a single intercompany process. With the Advanced Intercompany Sales process, the system automatically creates the following additional business documents:

  • Purchase orders from the selling companies

  • Sales orders in the delivery companies


For the transfer of control of goods between the affiliated companies and the customer, this advanced process uses valuated stock in transit (VSiT).

For more information about Advanced Intercompany Sales, see Product Assistance.

Key features


With this new 2022 release, product compliance data is integrated into the Advanced Intercompany Sales process. The system carries out checks on the documents created within this process and sent safety data sheets with the delivery if required.


Picture 10: Prevent execution of noncompliant advanced intercompany sales orders for all relevant products.

 You can now use product compliance data in checks carried out in documents within the advanced intercompany sales process:

Compliance-relevant products in which the system carries out compliance checks:

  • A standard sales order of the selling company

  • Outbound delivery of the delivery company

  • Freight orders and freight units (dangerous goods check, only)


System verification of the following during document creation or editing:

  • Relevant safety data sheet: whether required and available in the specified languages

  • Products classified as dangerous goods: whether transportation of a product is allowed, forbidden, or restricted

  • Marketability status for compliance-relevant products in affected countries or regions


Safety data sheets:

  • Sent from the outbound delivery of the delivering company with the address in chapter 1 of the selling company


Additional Details


The data gathered in the different product compliance processes can be used within the Advanced Intercompany Sales process for checks and the shipment of safety data sheets.

Compliance Checks

For compliance-relevant products, the system carries out compliance checks in the following documents:

  • In the standard sales order of the selling company

  • In the outbound delivery of the delivery company

  • In freight orders and freight units (dangerous goods check, only)


When you create or edit one of these documents, the system checks the marketability status for the compliance-relevant products in the affected countries/region. In addition, the system verifies, whether a safety data sheet is required and whether the relevant safety data sheet is available in the specified languages. For products that are classified as dangerous goods, the system also checks whether transportation of the product is allowed, forbidden, or restricted.

Depending on the outcome of these checks, the system sets the corresponding status for the item. Based on the item status, the system also sets a status for the whole document in the header of the document and, if issues arise during the checks, blocks the item or the whole document.

 

Product compliance integration in advanced intercompany stock transfer


With this new 2022 release, product compliance data is integrated into Advanced Intercompany Stock Transfer processes. The system carries out checks on the documents created within these processes.

Key features


The data gathered in the different product compliance processes can be used within the Advanced Intercompany Stock Transfer process for checks that are carried out in the following documents created within these processes.

  • In the intercompany purchase order of the receiving company

  • In the outbound delivery of the delivery company

  • In freight orders and freight units (dangerous goods check, only)


When you create or edit one of these documents, the system verifies, whether a safety data sheet is required and whether the relevant safety data sheet is available in the specified languages. For products that are classified as dangerous goods, the system also checks whether transportation of the product is allowed, forbidden, or restricted.

Depending on the outcome of these checks, the system sets the corresponding status for the item. Based on the item status, the system also sets a status for the whole document in the header of the document and, if issues arise during the checks, blocks the item or the whole document.

Remark: Advanced Intercompany Stock Transfer


With the business process, you can now transfer stock between two affiliated companies of one corporate group. The process uses the valuated stock in transit to continuously document the stocks in the postings. You can monitor each process step using the Monitor Value Chains app.


Picture 11: Increased transparency, efficiency, and cross-team collaboration with Monitor Value Chains app.

For more information about the integration of product compliance data into value chain processes, see the Product Assistance for Product Compliance:

 

Thanks for reading this blog post.

If you are also interested in other Lines of Business, I would like to draw your attention to my link collection blog – The Link Collection

If you want to learn more and actively engage with SAP subject matter experts on SAP S/4HANA Cloud, join our SAP S/4HANA Cloud Customer Community. This platform which is available to SAP S/4HANA Cloud customers and partners has a clear mission: deliver an interactive community to engage with one another about best practices and product solutions.

For more information on SAP S/4HANA Cloud, private edition, and SAP S/4HANA, check out the following links: 

  • SAP S/4HANA 2022 “highlights in seconds” blog and video

  • SAP Enterprise Resource Planning website

  • SAP S/4HANA Cloud, private edition release here

  • SAP S/4HANA Community here

  • The Link Collection for Sales here

  • The Link Collection for Product Compliance here

  • SAP S/4HANA PSCC Digital Enablement Wheel here

  • Inside SAP S/4HANA Podcast here

  • Join the SAP S/4HANA Movement

  • Best practices for SAP S/4HANA here

  • Help Portal Product Page here

  • Feature Scope Description here

  • What’s New here


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