With the increasing importance of compliance in global trade, sanctioned party list (SPL) and denied party list (DPL) data helps you keep track of business partners with whom it is legal or illegal to trade. SAP BusinessObjects Global Trade Services allows you to monitor, index, and screen your business partner data once you’ve loaded your SPL content. After looking at how to do this, I’ll take you through some reports and tips for operational effectiveness.

Loading

There are several different ways to load SPL content into SAP BusinessObjects Global Trade Services.

• Manually: Use to maintain internal, company-specific lists
• XML interface: To take advantage of this option, you must contract with a company that provides the initial load and periodic updates of the DPL. You can then set up periodic jobs to load the updated information into the SAP BusinessObjects Global Trade Services system.
• SAP NetWeaver Process Integration (SAP NetWeaver PI) interface: You can also set up an automated SAP NetWeaver PI interface between your SAP BusinessObjects Global Trade Services system and the DPL content provider

Monitoring

The Monitoring section of the SPL screening cockpit has a list of reports that allow you to monitor the DPL content that is loaded into the system. To see it, follow menu path SAP GTS Area Menu > SAP Compliance Management > Sanctioned Party List Screening (Figure 1). You can view the content in different formats, such as an overview list (all the address fields in one line) or a structured list (address fields separated by lines). Use Display Overview List to look at the SPL in a list format and run Display Structure List to display the SPL data in structure format (e.g., name and address). You can also display the SPL that is expiring by running the report Display Expiring Sanctioned Party Lists. The SPL content load can be volume intensive, so you can archive it if necessary. The report Display Archivable Entries allows you to list the SPL entries that can be archived. Because SPL entry is very critical and sensitive information, you can also track the changes to the databases with the report Display Change History.

Figure 1

SAP BusinessObjects Global Trade Services SPL functionality

Indexing

Comparing characters from a DPL database to characters from a business partner database is extremely performance intensive. As such, SAP BusinessObjects Global Trade Services provides a feature to build indexes based on these databases. SPL screening is accomplished using these indexes instead of raw characters, which improves performance.

To build these indexes, there are a few actions that you need to perform following the DPL content load:

• Generate Comparison Terms: This allows you to build the indexes for the SPL content. Use transaction /SAPSLL/SPL_ST01 or follow menu path SAP GRC GTS Area Menu > SAP Compliance Management > Sanctioned Party List Screening > Master Data tab > Comparison Terms for Sanctioned Party Lists > Generate Comparison Terms. Enter the legal regulation, uncheck Simulation Mode, and run it in the background.
• After building the index, load it into the memory. Click Aggregate Comparison Terms within Comparison Terms for Sanctioned Party Lists or use transaction /SAPSLL/SPL_ID01. Enter the legal regulation (for example, SPLUS) and schedule it in the background. Alternatively, you can also run it online.

While you are in the Masi feter Data tab under Comparison Terms for Business Partners, you can use transaction /SAPSLL/SPL_STBP to build an index for business partners as well. This allows you to build the index for the entire database, or based on incremental load. For an ongoing run, select Changed Partner Addresses only.

You can display Figure 2 by using transaction /SAPSLL/MENU_LEGAL or by clicking the Mast. Data tab in Figure 1 and under Comparison Terms for Sanctioned Party Lists clicking Generate Comparison Terms. Select the applicable Legal Regulation (e.g., SPLUS) and execute the program in the background, which then builds the index for DPL content that is loaded into the system.

Figure 2

SPL index build program or transaction selection options

Use transaction /SAPSLL/MENU_LEGAL or select Aggregate SPL Comparison Terms from the Mast. Data tab (Figure 3). Here you select the legal regulation (e.g., SPLUS) and execute the program online or in background. This ensures the indexes are loaded into the memory.

Figure 3

Aggregate the SPL index

Use transaction /SAPSLL/MENU_LEGAL or from the Mast. Data tab click under Comparison Terms for Business Partner and click Generate Comparison Terms (Figure 4). Enter the legal regulation (e.g., SPLUS), select Changed Partner Addresses Only, and uncheck the Simulation Mode check box. Then schedule this program or transaction in the background by going to Program > Execute in Background.

Figure 4

Business partner indexing

If you have configured TREX, you need to do another additional step of transferring the SPL comparison term to the TREX system. You can find this from transaction /SAPSLL/MENU_LEGAL or by clicking Transfer Comparison Terms to TREX under the Mast. Data tab. Enter the Legal Regulation (e.g., SPLUS) and click the execute icon.

Then in the SPL cockpit click Reset Buffer (Figure 5). Resetting the buffer allows you to reset and reinitiate the indexes based on the configuration and SAP BusinessObjects Global Trade Services front end or cockpit settings. While running the transaction, check Initiate String Comparison and Initialize Legal Control, and execute the transaction or schedule it in the background. After this, you can arrange the SPL indexes and aggregate them. Similarly, you can also build alphabetical and numerical indexes on the business partner for quick retrieval.

Screenings

Business partners are created as master data in SAP ERP Central Component (SAP ECC) and then transferred to SAP BusinessObjects Global Trade Services. The screening of business partners is captured in the system with a code for future audit purposes. Table 1 explains the different screening scenarios available for business partners and documents.

You can execute the different SPL screenings in Table 1 by executing one of the transactions under Sanctioned Party List Screening under the Logistics tab of the SPL cockpit (Figure 6).

Figure 6

SPL screening scenarios

You can run the audit trail reports transactions by using transaction /SAPSLL/MENU_LEGAL or by selecting Audit Trails in the Logistics tab of the SPL cockpit (Figure 7).

Figure 7

Audit trail for business partners and documents (A1 and A2)

The three functional areas within the SPL — logistics, financial accounting, and human resources — all have the screening scenarios listed in Table 1. SAP BusinessObjects Global Trade Services also provides functionality to schedule these screenings in the background and in dialogue mode. The screening jobs are performance intensive. Depending on your database size, I recommend that you run them as background jobs.

You can choose to perform synchronous or asynchronous screening on these business partners, but I recommend synchronous screening for regular business partner transfers and asynchronous screening for volume transfers (such as during initial pre-go live conversion). If you use synchronous screening, you do not need to set up any screening jobs. After the initial load, you might obtain additional content as a new list or content additions to the original file — these are called delta content loads. For these loads, you need to set up a delta screening job for business partners and documents. Use C1 (business partners) and C2 (documents) for background delta screening jobs.

These jobs should be scheduled in a partner sequence following the delta load of the SPL file, as explained below:

• Run the SPL delta load file (transaction /SAPSLL/SPL_UL01)
• Build the index for SPL (transaction /SAPSLL/SPL_ST01)
• Load the SPL index
• Run the business partner index build while the SPL index is scheduled
• After both indices are built, schedule the business partner delta screening (C1)
• After the business partner delta screening is complete, schedule the document delta screening (C2)

SAP BusinessObjects Global Trade Services also allows you to run simulation screening against your existing business partners and documents. With SAP BusinessObjects Global Trade Services 7.2, you can run a simulation screening against an external file with business partner addresses in them. These simulation audits are captured within the system for future review and audit purposes.

Operational Effectiveness

There are a few tips and tricks that are important for operational effectiveness in SPL screening. I’ll introduce some new features and emphasize some already-discussed features.

First, it is important to know the business partner screening results. After the initial setup of the configuration rules, I recommend that you run the block partner report and ensure that you understand the screening results. Under the Check Against Updated Sanctioned Party Lists section of the SPL cockpit, click Check Business Partner Addresses (Batch) (Figure 8). Plan on testing with results you expect to be blocked. You might have to do a trial and error with a combination of the configuration settings and the control settings within the SAP BusinessObjects Global Trade Services cockpit.

Figure 8

Delta screening of business partners

Indexes are important functions of the SPL screening. Plan on running the SPL index if one or more of the below happens:

• Change in the SPL database; new delta file loaded
• SPL configuration changes
• SPL control settings changes within the SAP BusinessObjects Global Trade Services cockpit

The reset of the buffer is important when one or more of the following happens:

• SPL configuration changes
• SPL control settings changes

Tactical Reporting

SAP BusinessObjects Global Trade Services provides effective tactical reporting, which is very useful for day-to-day operations. These reports allow you to review the blocked business partners and documents within SAP BusinessObjects Global Trade Services, analyze the reason for the blocks, and take appropriate action. For the SPL, you have one functional area in which to look at all the export and import transaction. With embargo services, the report appears in two areas, export or import; for example, purchase orders appear in the import area, and sales orders in the export area.

Reports on SPL Screening of Business Partners

With SPL, import and export functions are under the same area. Within the Monitoring tab, there is a section for Business Partners and Documents. Within Business Partners, there are reports for Blocked Business Partners, Positive Lists, and Negative Lists. In this section, I discuss the most important of these reports, which is Blocked Business Partners (Figure 9).

Figure 9

Blocked business partner address (customers and vendors)

Select the Blocked Partners Only radio button under Processing Mode to display the business partners (Figure 10). The status displays different color codes: red represents blocked business partners, green represents unblocked business partners, and yellow represents a soft block, meaning the business partner has not yet been screened. The report displays the status of the business partner based on the SAP BusinessObjects Global Trade Services system screened results.

Figure 10

Blocked business partner

You can select a business partner and click the Sanctioned Party List Screening button to re-screen the business partners. The system then displays the results, including the detail of the hits on the addresses. After receiving the screening results, you can click the Detail Analysis button to see more information about the results. Figure 11 shows a sample SPL screening result. The right side provides the display of the SPL entry that was a match, and the bottom left side displays the business partner address.

Figure 11

Report of business partner SPL and detailed results

While you are here, you have the following choices:

• Accept the screening results
• Click Release (if the business partner is a false hit)
• Click Block (if you want this business partner to be under block status)
• Click Positive List or Negative List. I’ll explain this later.

SAP introduced positive and negative lists with SAP BusinessObjects Global Trade Services 7.0. It allows you to put a business partner under a positive or negative list as long as the address in the SAP ECC system hasn’t changed. If someone changes the address in the feeder system, the business partner drops off the list. With SAP BusinessObjects Global Trade Services 7.2 and higher, you can decide to permanently keep the business partner in the positive or negative list, even if the original address is modified in the feeder system.

The positive list allows you to put business partners in a group that can be excluded from any delta screening and has a status of Release, so that they are not blocked for any further document processing. The negative list puts the business partner under a Block status, blocking further document processing. In SAP BusinessObjects Global Trade Services 7.2 and higher, you can permanently keep a business partner on the list, even if the address is changed in the feeder system.

If you place a business partner in the positive or negative list and you then want to display this business partner, you must ensure that you select the appropriate placeholder (Positive List, Negative List, Blocked, or Released) while running the Block Business Partner report. Alternatively, you can run the reports Display Positive List Business Partner (transaction /SAPSLL/SPL_POSBPLO) or Display Negative List Business Partner (transaction /SAPSLL/SPL_NEGBPLO).

Within the Logistics tab, under Periodic Screening, you have two functions: Check Positive List Business Partner Address (transaction /SAPSLL/SPL_CHSB1PLO) and Check Negative List Business Partner Address (transaction /SAPSLL/SPL_CHSB1NLO). These allow you to re-screen the positive and negative lists so that you can review and decide which of the business partners you would like to retain in the lists.

Reports on SPL Screening of Documents

Similar to the blocked business partner, the blocked documents reports display the documents or transactions that were blocked following the SPL screening. You can also manually run the SPL screening against the documents. If it finds a match against the business partner address with the SPL entry, it is displayed in the blocked documents report. Within the report, you can display the blocked document for both import and export transactions.

If you want to release the document without having to review the business partner, you can use the function Release Blocked Documents (transaction /SAPSLL/SPL_BLRL). Select the document and click the release icon. When you release the document directly, the system produces a pop-up window in which you can make comments on the release (Figure 12). (A similar screen appears if you release a business partner without performing SPL screening.)

Figure 12

Release of blocked documents

Display All Documents (transaction /SAPSLL/SPL_CUHD) allows you to display all the compliance documents that are transferred to SAP BusinessObjects Global Trade Services (blocked, not blocked, or technically incomplete, for both exports and imports). Technically Incomplete Documents captures documents in SAP BusinessObjects Global Trade Services that have missing data — for example, if a business partner is missing or a legal unit is not mapped in SAP BusinessObjects Global Trade Services (Figure 13). SAP BusinessObjects Global Trade Services only performs a screen when the documents are technically complete.

Figure 13

Technically incomplete documents

Finally, Re-Check Import/Export Documents allows you to re-determine or re-check the status of a document based on the latest information. If you release a business partner with documents blocked, you need to re-check the documents. When you run this report, enter the document number and make sure that Save Log is checked, which ensures that the status is updated. If you want to see the results online, select Display Log, which prompts you the re-check the results. Figure 14 displays the transactions for re-checking your documents with the latest information. In the Logistics tab, under the Document section, select Re-Check Import / Export Documents.

Figure 14

Re-check of import and export documents

Rajen Iyer

Rajen Iyer is the cofounder and CTO at Krypt, Inc. Rajen has written several in-depth, best practice articles, white papers, patents, and best-selling books on SAP Logistics and SAP Global Trade Services, including Effective SAP SD and Implementing SAP BusinessObjects Global Trade Services. He is also an invited speaker at industry conferences.

You may contact the author at Rajen@kryptinc.com.

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