Product Compliance in SAP S/4HANA Cloud 2208

Due to their dual hazard properties associated with their chemical and electrical content, Li-ion batteries (UN 3480), as well as Li-ion batteries contained in equipment or packed with equipment (UN 3481), are classified under CLASS 9 Dangerous Goods.

Now with this new SAP S/4HANA Cloud 2208 release, the special provision 188 for batteries in the dangerous goods classification process for packaged products is supported. See in this blog how we continue our journey to increase key differentiators with full of exciting innovations, enhancements, and features supporting your intelligent enterprise.

To name just a few highlights:

  • Embedded regulatory content update
  • Integration of supplier checks for purchase contracts
  • Dangerous goods checks in air cargo freight booking of transportation management
  • Automated determination of transport permissions based on enclosure-specific list data
  • Support of special provision 188 for batteries
  • New SAP Fiori apps to maintain data for safety data sheets and labels
  • Registration and Management of Confidential Business Information
  • … and more.

In case you do not need all the information below and just briefly want to get an overview of the release highlights, please watch this video with the top two key innovations:

Release video: SAP S/4HANA Cloud 2208 for Product Compliance: Top 2 key innovations.

Companies are facing complex and specific regulations in the market. With the ability to validate regulatory compliance early in the product development cycle, you avoid the risk of having to rework formulations containing banned or restricted substances or, worse, recall products if they do not meet regulatory obligations. or customers’ requirements.

SAP delivers new and updated compliance requirements for Product Marketability, Safety Data Sheet Management, and Dangerous Goods Management, which you can use in your product compliance processes. You can view all SAP-delivered compliance requirements using the Manage Compliance Requirements apps. To use the compliance requirements in your product compliance processes, you must activate the ones that are relevant for your own business and deactivate the ones that are not relevant using the Activate Compliance Requirements app. After activating a compliance requirement, you want to use, you must assign it to at least one compliance purpose using the Manage Compliance Purposes app.

Picture 1: Enable customers to rely on embedded regulatory content including phrases, graphics, and listed substances.

With the update and enhancement of the integrated regulatory content, you stay compliant with your product portfolio using the most recent regulatory updates. With the SAP S/4HANA Cloud 2208 release, SAP provides the following new and updated compliance requirements in the following solution areas:

Product marketability

In total 207 compliance requirements for product marketability embedded

  • 139 Substance List Checks (SLC)
  • 67 Simple Compliance Documentation
  • 1 Poison Centre Notification

With SAP S/4HANA Cloud 2208 delivered:

  • 59 updates of existing compliance requirement versions (SLC)
  • 39 new compliance requirement versions (SLC)

Dangerous Goods Management

In total 14 compliance requirements for dangerous goods management embedded:

  • 49 CFR, ADG, AND, ADR, ANTT, IATA-DGR, IMDG Code,
  • NCh382, NOM, NZS 5433, RID, SANS 10228,
  • TDG, UNRTDG

With SAP S/4HANA Cloud 2208 delivered:

  • 2 new compliance requirement versions
    (IATA-DGR 2022 and UNRTDG 2021)
  • 4 new enclosure-specific dangerous goods lists
    (CFR 49, TDG, NOM, UNRTDG)
  • 6 new organic peroxide lists
    (ADN, ADR, IMDG-Code, RID, TDG, UNRTDG)
  • 6 new self-reactive substance lists
    (ADN, ADR, IMDG-Code, RID, TDG, UNRTDG)

Safety Data Sheet Management

In total, embedding of 102 compliance requirements for safety data sheet management

With SAP S/4HANA Cloud 2208 delivered:

  • 3 updates of existing compliance requirement versions
    (CH Safety Data Sheet (Jun 2020),
    TR Safety Data Sheet (Jun 2017),
    MK Safety Data Sheet (Jul 2013))

In Product Compliance, you can assess suppliers and set a 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 of compliance-relevant products during the creation of a purchasing business document. Fields on item level and on header level indicate the status of the check.

The supplier check is integrated into the following documents:

  • Purchasing documents of category F (Purchase Order).
  • Purchasing documents of category K (Contract).

Please note that the supplier check needs compliance assessment data for the check and, therefore, does not support the use of one-time suppliers without assessments.

Demo 1: Prevent execution of noncompliant procurement processes for all relevant products.

Additional Details

In Product Compliance, you can assess suppliers and set a 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 item level and on 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.

For more information about the supplier check in Product Compliance, see Supplier Check in Purchasing Documents in the Product Assistance for Product Compliance.

Dangerous goods are items that may endanger the health and safety of passengers and/or crew, or which may damage the aircraft. These restricted goods are regulated by IATA.

In the shipping of dangerous goods by air are included:

  • Explosives
  • Gases
  • Flammable liquids and solids
  • Corrosive substances
  • Oxidising substances and organic peroxides
  • Toxic and infectious substances
  • Radioactive material
  • Corrosives
  • Magnetised materials and miscellaneous dangerous goods.

With some exceptions, goods classified as dangerous must not be carried by passengers or crew in their checked-in or carry-on luggage. The transport of dangerous cargo by air is subject to national and international legislation. It is essential to consider the potential adverse effects of variations in temperature, pressure, and humidity, as well as the risk of damage due to vibrations or improper handling.

Now with this SAP S/4HANA Cloud 2208 release, dangerous goods checks are now integrated into transportation documents for air cargo transport.

Picture 2: Prevent execution of transports containing noncompliant products.

Key features

With this feature, you can check whether your compliance-relevant products can be transported by air cargo. If no compliant air cargo transport is possible, the system blocks freight units and air freight bookings to prevent you from planning noncompliant transportation demands and also from carrying out transports that contain noncompliant products.

Compliance with dangerous goods regulations is an important component of product compliance to ensure the safe transportation of dangerous goods. To support your compliance with dangerous goods regulations, dangerous goods checks are now integrated into the processing of the following transportation documents for air cargo transport:

  • Freight Unit
  • Air Freight Booking

If a product has been marked as relevant for compliance in the product master, the system checks dangerous goods data as the transportation document is created or edited. If an item in the document has been classified as a dangerous good, the system also checks if all necessary dangerous goods data is available and whether transportation of the product is allowed, forbidden, or restricted. Depending on the outcome of this check, the system issues warnings or blocks the document.

For more information about the integration of dangerous goods data into Transportation Management, see Product Compliance Check for Air Freight

For more information about the dangerous goods checks, see Dangerous Goods Check in Transportation Management in the Product Assistance for Product Compliance.

Marking and labeling are important steps when preparing a dangerous good package for transportation. Labels often communicate the hazards associated with the package, and markings ensure the shipment is handled so that spills, accidents, and exposure are prevented.

With SAP S/4HANA Cloud 2208, marking texts are supported in the dangerous goods classification process of packaged products.

Picture 3: Provide marking texts for packaging of dangerous goods to comply with the dangerous goods regulations.

Remark: A demo of this new feature is given together with Support of Special Provision 188 for Batteries in the next chapter

Key features

Marking texts are descriptions containing information about a dangerous good and must be clearly and durably affixed on the package. With this feature, you can determine the applicable marking texts automatically or you can enter them manually when classifying package products according to dangerous good regulations.

To support the marking texts, the description templates in the compliance requirements for dangerous goods are adapted, new placeholders are added, and new selection rules for the description templates are delivered.

You can find more information about description templates in the Product Assistance for Product Compliance. See Templates for Dangerous Goods Descriptions.

Shipments of lithium batteries that are compliant with Special Provision 188 of the ADR/IMDG Regulations are not subject to other provisions of the applicable regulations and can therefore be transported as “Excepted” Lithium Batteries.

With this new release, the special provision 188 for batteries in the dangerous goods classification process for packaged products is supported.

Demo 2: Make efficient use of dangerous goods exemptions to save costs.

Key Features:

Enhancements in packaged, dangerous goods classification include the ability to:

  • Assign special provision 188 to batteries classified as UN 3090, UN 3091, UN 3480, UN 3481
  • Automatically derive the dangerous goods description for special provision 188
  • Create correct labels if special provision 188 is assigned

Enhancements in dangerous goods compliance requirements include:

  • New placeholders to build the description templates for special provision 188
  • Delivery of new description templates to support special provision 188
  • Enhanced description template rules to support special provision 188

Additional Details

In the classification process for packaged products, you can now select special provision 188 in the Applied Special Provision / Exemption field for batteries classified as UN 3090, UN 3091, UN 3480, UN 3481. The system automatically generates the dangerous goods description for special provision 188 and determines the correct labels if special provision 188 is assigned.

To support the classification process, the description templates in the compliance requirements for dangerous goods are adapted, new placeholders are added, and new selection rules for the description templates are delivered.

You can find more information about description templates in the Product Assistance for Product Compliance. See Templates for Dangerous Goods Descriptions.

With this release, the system automatically determines the transport permission for packaged dangerous goods based on enclosure specific dangerous goods list data provided with the compliance requirements for dangerous goods.

Demo 3: Provide support in determining transport permission to comply with dangerous goods regulations.

Key features

When classifying packaged products according to dangerous goods regulations, you have to select an enclosure variant and set the transport permission for this enclosure variant in the Specify Enclosure Variant popup. In this popup, a new entry is added for determining the transport permission from the regulatory list. If the system doesn’t find an entry for the selected enclosure variant, the system sets the transport permission to forbidden. However, you can change the transport permission, determined by the system, if needed.

Note that this feature is supported only for the dangerous goods regulations for which enclosure specific list data is available. This data is included in the following compliance requirement versions:

  • ADN 2021
  • ADR 2021
  • CFR 49 as of May 11th 2020
  • IATA-DGR 2022
  • IMDG Code 2020
  • NOM-002-SCT/2011
  • RID 2021
  • TDG 2020
  • UNRTDG 2021

Remark 1:    If NO Enclosure-specific Classification List is available in the Compliance Requirement (ADG, NZS, ANTT, NCh382, SANS), the system sets the Transport Permission to „Pending” and you need to manually set the status.

Remark 2:    We will continue to expand this new feature with future versions of SAP S/4HANA Clou! You still need to manually check, if your product is packaged according to the regulations requirements (Packing Instructions) and you might need to adjust the Transport Permission accordingly.

You can find more information how to classify products according to dangerous goods regulations in the Product Assistance for Product Compliance. See Dangerous Goods Assessment.

With Safety Data Sheet Management, companies can provide the required information for the safety data sheets of products. Safety data sheets (SDSs) are a well-accepted and effective method for the provision of information to recipients. Without a safety data sheet, a product cannot be sold into markets. Both employers and workers use safety data sheets as a source of information about hazards, including environmental hazards, and to obtain advice on safety precautions. The employer can use the safety data sheet information to consider any measures that may be necessary to protect the environment.

With SAP S/4HANA Cloud 2208 release, we deliver new SAP Fiori apps to:

  • Manage information on waste codes (safety data sheet, section 13 and part of 15)
  • Manage Global Harmonized System (GHS) labeling information (safety data sheet, section 2)
  • Define substances as confidential business information (CBI) and define a range for confidential information
  • Manage registrations of confidential business information for Canada

In the same way, we also introduce a new release concept to control when information is ready to be used in follow-on processes.

Demo 4: Enable customers to manage data for safety data sheets, labels, and reports.

Key features

Globally Harmonized Classification Labeling

With this new feature, you are able to create unique labels for your product. With this app you can add graphics, hazard statements, precautionary statements, and attachments. All this comes with pre-loaded phrases translated into many different languages.

Manage Waste Codes

With this feature, you can specify the data that is required on a safety data sheet or other documents. In the Manage Waste Codes app, you can edit waste codes to ensure that they are up to date and the unpackaged product or the raw material stays compliant.

Registration of Confidential Business Information

With this feature, you can document the registration of confidential business information. Use the Registration of Confidential Business Information app to enter the registration number and affected product or substance data to document the registration on product level or component level, depending on the country- or region-specific requirements.

With this SAP S/4HANA Cloud 2208 release, we deliver the first version of the new label management functionality and label data management functionality.

Concept

Label Management in SAP S/4HANA Cloud provides open interfaces to support companies in designing labels for products through partner solutions of choice. By setting up configurations for products in SAP S/4HANA, companies can have the relevant label data transferred for printing to external systems.

With this concept, we are bringing together the best of both worlds:

  • Label data management, label determination, and process integration will be done in SAP S/4HANA Cloud
  • Best-in-class label design and printing from partner solutions (e.g. Loftware, NiceLabel, Eurosoft-Plus). Here a separate license is required!

Demo 5: Improved labeling configurations.

Deliveries in SAP S/4HANA Cloud 2208

Management of Compliance Requirements for Labels:

With this feature, you can view, create, and edit compliance requirements for labels. Once you have finished defining the compliance requirement, you can release it and use it in follow-on business processes in label management, such as the preparation of label configurations.

For more information, see Manage Compliance Requirements – Labels.

Creation of Label Configurations

With this feature, you can create label configurations. A label configuration reflects the label category and the label template that is relevant for it. It also contains information about the applicable compliance requirements to a label. The configuration is used to prepare the setup for a product label.

For more information, see Manage Configurations for Labels.

Assignment of Label Configurations to Products

With this feature, you can create label assignments for products. A label assignment helps you to associate a label category to the product and assign available label configurations to that product. The assignment of one or more label configurations to a product is part of the initial setup of label information in the SAP S/4HANA system.

For more information, see Manage Label Assignments.

OData API: Label Template Metadata

With this feature, you can create metadata for label templates and retrieve or update existing metadata from your SAP S/4HANA system as a result of the design of label templates in external systems. The metadata of a label template includes its name, version, list of used label field versions (from the OData API: Label Field Catalog), and others.

This API is available on the SAP API Business Hub (https://api.sap.com)

For more information about the labeling for Product Compliance in SAP S/4HANA Cloud, see the blog post from Michael Mulder here.

We’ve hosted a series of compelling live sessions from the heart of the SAP S/4HANA Engineering organization. Missed the live sessions? Watch our replays on demand!

Among the replays, you can find a 30-minute replay, a presentation, and demos for Enterprise Portfolio and Project Management as part of the SAP S/4HANA Cloud 2208 release as well as 20 other sessions on diverse topics like Manufacturing, Finance, Professional Services, SAP User Experience, Developer Extensibility and much more. For more information on the SAP S/4HANA Cloud Early Release Series and how to sign up for it, see this link.

Thanks for reading this blog post. Stay tuned!

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

  • SAP S/4HANA Cloud release info here
  • Sven Denecken’s SAP S/4HANA Cloud 2205 Release Blog
  • The Link Collection for Product Compliance here
  • Latest SAP S/4HANA Cloud Release Blogs here and previous intelligent ERP updates here
  • Product videos on our SAP S/4HANA Cloud and SAP S/4HANA YouTube playlist
  • SAP S/4HANA PSCC Digital Enablement Wheel here
  • Early Release Webinar Series here
  • Inside SAP S/4HANA Podcast here
  • openSAP Microlearning for SAP S/4HANA here
  • Best practices for SAP S/4HANA Cloud here
  • SAP S/4HANA Cloud Community here
  • Feature Scope Description here
  • What’s New here
  • Help Portal Product Page here
  • Implementation Portal here

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