Import compliance for purchase orders

If the Trade Management check box is selected in the Implemented Software Components (tccom0100s000) session and the Import check box is selected in the Trade Management Parameters (tcgtc0100m000) session, you can set up information for an item for which import compliance is applicable.

When an item is subject to global trade compliance, internal checks are executed to ensure that the import compliance information is valid and the required licenses are available. This check is done during purchase order line entry, shipment notice line scheduling, and warehouse receipt line confirmation.

After a purchase order line is checked for import compliance, the success and failure data is logged. If the import compliance check fails, the purchase order line is blocked.

To allow the exclusion of documents from import compliance checks, you can specify document exceptions. For example, the exceptions can be specified by business partner, country, and document type.

Purchase order lines

When a purchase order line is specified in the Purchase Order (tdpur4100m900) session, an import compliance check is executed if these conditions are met:

The Internal Check check box is selected on the Trade Compliance tab of the Trade Management Parameters (tcgtc0100m000) session
The order type is not used for returning inventory, returning rejects, or consignment payment
The warehouse is specified
The ordered quantity or order amount are more than zero
The Subject to Trade Compliance check box is selected for the item in the Items (tcibd0501m000) session
The country of the ship-from address differs from the country of the receipt address

If these conditions are met, and no exception is found in the Import Document Exceptions (tcgtc0130m100) session, an internal compliance check is executed for the purchase order line. For the internal check, LN verifies whether a valid import license is available in the Import Licenses (tcgtc0120m100) session. The availability and validity of import compliance data for the combination of item and ship-from country in the Item Inbound Compliance Data (tcgtc0110m100) session is also verified.

If the Apply Quantity Limit check box or the Apply Value Limit check box is selected in the Import Licenses (tcgtc0120m100) session for the import license, quantity or value limits are verified. The purchase order line's ordered quantity in inventory unit and the net order line amount in order currency are used for these checks. During receipt confirmation, import license consumptions are logged in the Import License Consumptions (tcgtc1520m100) session.

Note: If global trade compliance is applicable for the item of the purchase order line, the Subject to Trade Compliance check box is selected for the line.

Components

If the Inventory Handling field is set to By Component in the Purchase Order Lines (tdpur4101m000) session, components are linked to the purchase order line. The import compliance check is executed only for the components that are received, and not for the main item. Consequently, the compliance check results are logged by component line.

If a component fails the compliance check, the order line is blocked. Several components can fail the check, but only one purchase order line blocking record is generated in the Purchase Order (Line) Blockings (tdpur4120m000) session. The order line cannot be unblocked before all failure results are removed for the component lines.

Import compliance check

The import compliance check can result in a success or failure, which you can view in the Document Compliance Check Results (tcgtc1510m000) session.

If the check is successful, the purchase order (component) line is saved and the order procedure can start. The compliance check result is automatically approved.

In case of a failure, the line is saved and blocked. Consequently, the Blocked check box is selected for the line. The line data is displayed in the Purchase Order (Line) Blockings (tdpur4120m000) session and the value of the Hold Reason field is retrieved from the License Compliance Hold Reason field in the Purchase Order Parameters (tdpur0100m400) session. To unblock the line, you must update the required data and re-execute the import compliance check, or an authorized person can manually override the import block by using the Document Compliance Check Results (tcgtc1510m000) or Override Compliance Check Results Workbench (tcgtc1610m100) sessions.

Note: On the appropriate menu in several Procurement sessions, you can use the Check Trade Compliance option to force execution of the import compliance check.