Export-oriented companies must prove the preferential origin of their products and goods to be able to deliver them with reduced duties or even duty-free to customers who have their head offices in other countries outside the EU and with whom there is a most favored nation agreement. The Foreign Trade components in SAP ERP support the preference processing, but not in a satisfactory manner. In addition, the new solution SAP S/4HANA for International Trade, which in the future will replace the Foreign Trade components, does not offer any features for the preference calculation and the management of long-term supplier’s declarations.
The powerful and easy to use SPEEDI solution “Preference Calculation” corrects these shortcomings, which is fully integrated into the existing SAP software (SAP ERP or SAP S/4HANA) and expands it without modification. Export-oriented companies can therefore perform sophisticated processes for the preference calculation very efficiently and transparently and optimally utilize the strategic sales potential that most favored nation agreements offer, but also utilize the opportunities for cost reduction.
The SPEEDI Preference Determination exactly determines the preference authorization for each salable material in compliance with the rules of the respective agreement, whether the material originates from fixed SAP parts lists or represents configurable parts. The SPEEDI solution thus maps all common preference regulations. If new requirements or trade agreements arise over time, such as the agreement between the EU and Japan (JEFTA) in 2019, WSW Software provides a timely solution update and at the same time helps customers in making the necessary adjustments. The SPEEDI solution is so flexible that, in addition to the most favored nation agreements of the EU, agreements from other economic areas can also be mapped in it, such as the North American Free Trade Agreement (NAFTA) or the new “United States Mexico Canada Agreement” (USMCA).
Unlike with the SAP standard, the preference calculation can also be automated across several plants or company codes in SPEEDI and therefore completed very quickly. This is huge advantage if components are frequently exchanged between individual plants or if the material stock of other locations is accessed. If necessary, subcontracting processes by external service providers, such as painting, finishing or assembly, are also correctly included in the calculation.
If the same material is also sourced from multiple sources (multi-sourcing), the solution automatically summarizes the preference status for this material in the background (worst-case principle). It also takes fluctuations of the purchase and sales prices into account at the same time. In both cases, it is ensured that the preference calculation is always compliant with customs regulations.
Another big plus is the fact that the SPEEDI preference calculation can also work seamlessly with the International Trade functions of SAP S/4HANA, which previously did not allow any preference calculation. A Transition Package ensures an easy switch to the I solution together with the existing data structures on SAP S/4HANA and ensures a smooth interaction with this ERP software suite.
Would you like to learn more about the solution SPEEDI Preference Calculation? We look forward to advising you. Please feel free to call or e-mail us.