License Determination - Country Group

[Former Member]

Hi All,

I have a business requirement to restrict the export of specific materials to specific country groups. If I'm attempting to export a material to one of those restricted countries, it will block because a license master will need to be created. This is pretty straight-forward.

For the countries that aren't maintained in the country group, I'm receiving the "Blocked (Determination)" popup. I need to understand how to route the countries that aren't in the country group to a "No License Required" License Type.

For example:

Material 1234567 cannot ship to US, CA or MX (we'll call this country group NORTH_AM) but it can go to any other country in the world.

I would maintain a 'country group/control class' determination strategy entry for the legal reg + country group + ECCN + license type.

Do any of you have experience with this?

Thanks,

Chris

[Former Member · Accepted solution]

Hey Chris,

1) Are you creating a new legal regulation for this requirement. If yes, then you can simply activate the legal regulation at Country Group/Country Group level.

Say you have Legal regulation "LR-CHRIS"- You can activate it as follows

LR-CHRIS

              Country Group ----   ZGLOBAL- Not activated

                          Country/Country Group- ZGLOBAL/NORTH_AM-  Activate Export Check

This way, your new legal regulation will only be determined if the Export is to any of those countries US, CA or MX. For others, this legal regulation will not be determined at all.

2) If you are not going to create a new legal regulation(with the design you have in place), then you will have to create a dummy license type NLR- No license required.

You will have to maintain the license determination strategy with another entry/row for the remaining countries group pointing to NLR license type. So, for a scenario other than those 3 countries- system will pick up license type NLR. you may have to group the remaining countries in a new country group.

I believe the first option would be more easier for you. Let's see if others have any other workaround for your case.

Hope this help to some extent.

Regards

Dhilipan

[Former Member · Accepted solution]

Hi Dhilipan,

Thanks for your advice and help so far.

Just to reiterate my requirement: if the country is not in the country group (e.g. ZNORTH_AM), a legal control block should not occur. Below is configuration I've attempted to maintain with your advise, but I continue to receive the "Blocked (Determination)" popup for the countries that are not in the ZNORTH_AM country group.

• Define Legal Regulation
  • New Legal Regulation: LR123
    • Assign Country Group:
      • ZGLOBAL (Export)
      • ZNORTH_AM (Export)
• Define Determination Procedure for Active Legal Regulations
  • New Entry: LR123
    • Assignment of Determination Strategy:
      • Determine Legal Regulation: Country Group/Country Group
• Activate Legal Regulations at Country/Country Group Level
  • Country
    • US
    • It seems the legal regulation will not activate unless I maintain at least one country. Not sure why?
  • Country Group
    • ZGLOBAL
    • Double-click on "Country Group/Country Group"
      • Add: ZNORTH_AM
• Activate Legal Regulation
  • Country:
    • US - Activated for Export
  • Country Group:
    • ZGLOBAL - Activated for Export
      • Country Group/Country Group
        • ZNORTH_AM - Activated for Export
• Maintain Determination Strategy
  • LR123 -> ZNORTH_AM -> ECCN -> LIC

Thanks for your help,

Chris

[Former Member · Accepted solution]

Hi Chris,

If you want to export for the country Group ZNORTH_AM, th  you do not need to maitain other country group in the activate legal Regulation at Country/Country Level area.

Please do it as follows:-

• Activate Legal Regulations at Country/Country Group Level

• Country
  • US
• Country Group
  • ZNORTH_AM (No need to maintain further settings inside if you want to export from this country group or if you want maintain a settings for country/country group to which you want to export i.e the destination country)

Further activate these  for export transactions.

Hope it will work now.

Regards,

Aman

[Former Member · Accepted solution]

Hi Chris,

I think the earlier setup didn't work because you had activated legal regulation at ZGLOBAL level as well. Keep ZGLOBAL not activated.  In the sub-level just activate ZNORTH_AM.

Please note you should activate a Legal regulation only with respect to one determination strategy.

In this case, I assume you are doing it at Country Group/Country Group level.

ZGLOBAL- Will include all countries.

ZNORTH_AM- Will include CA,US and MX.

Your new legal regulation will only be determined if there is an export TO CA, US and MX.

Regards

Dhilipan

[Former Member · Accepted solution]

Hi Dhilipan,

I have not been able to configure the country groups as you specified. I would like to understand this in more detail.

However, I was able to configure the 'NLR' country groups that aren't part of the restricted country groups, which resulted in the correct results.

Thanks for your help.

Chris

[Former Member · Accepted solution]

Hi Chris,

Yes, i can clarify on this. Can you please let me know if there is you have any specific sending country.

Do you have a separate country group which includes multiple countries from where you are sending the product or its just a single country?

I can give complete details for you to try. Though the NLR solution works for you already, you can just give a try on the setup in sandbox.

My assumption is: You need certain materials to be exported to CA, US and MX strictly with license. Same materials can move to any other country without any restriction. Please clarify if this requirement is for export from multiple countries or only country.

Regards

Dhilipan

[Former Member · Accepted solution]

Hi Dhilipan,

Let me try another scenario.

The exporting country is BE. For demonstration purposes, let's call the country group as: ZGRP1

ZGRP1 includes:

• RU
• CN
• TN

The product can ship to all other countries, except the countries in ZGRP1.

Without creating an NLR country group for all countries not in ZGRP1, how can I not control products going to countries not listed in ZGRP1?

Thanks,

Chris

[Former Member · Accepted solution]

Hi Chris,

You can create a new Legal regulation- LR1. As you need this scenario to be applicable only for exporting country BE.

Please make sure your determination procedure has a strategy Country/Country group level.

• Now under Define legal regulations- Make sure you add your country group ZGRP1.
• Under SAP GTS->General Settings->Legal Regulations->Activate legal regulations at Country/Country Group level. Activate your legal regulation in the following way.

Under BE-> Create ZGRP1 row

• Under Compliance Mgt- Legal Control-Activate Legal regulations. Please keep it as shown below

Not activated at higher level

Activate it in sub-level.

• The other settings such as assigning Numbering schemes for ECCN and License should be done for this Legal regulation.
• You need to classify your product for this legal regulation.
• You can define one license type which will be used for exporting this product to RU, CN and TN.
• Maintain determination strategy only for this combination LR1+ZGRP1+ECCN+License type

So, this way when there is a Sales order exporting your product from BE to RU/CN/TN- Legal regulation LR1 gets activated and system will start looking for a License to ship products to RU/CN/TN. If not, the document is going to be blocked.

If the SO is exporting your product from BE to any other countries- legal regulation LR1 will not be determined at all. So no block.

This can be just another way to achieve your requirement to block Shipping only to RU/CN/TN and not to any other country. You might feel the earlier way of just creating a new license type NLR will be easy. I am not sure if you are achieving this with a legal regulation that you have already. But if you are anyways creating a new legal regulation already, you may give this new option a try in your sandbox.

Hope this helps. If you feel, I had misunderstood your request please feel free to comment

Regards

Dhilipan

[Former Member · Accepted solution]

Thank you for the detailed example.

However, if you do not activate "BE" for Import or Export for LR1, the Legal Regulation will never be 'invoked' during the export process.

Thank you,

Chris

[Former Member · Accepted solution]

Chris,

Did you try this once?

You just need the legal regulation to be invoked for an export from BE to RU/CN/TN right?. So, the export process can be screened and blocked.

Just because you don't activate at the higher level it doesn't mean the Legal regulation will never be invoked. It is to indicate that the legal regulation should be only invoked for an Export from BE to RU, CN or TN. That's the reason why we activate it as the sub-level.

Please try once, to be clear not activating at BE level doesn't mean this LR will never be invoked. We have several LRs setup this way which should be activated only for Export from X to Y country. These kind of logic are used for some of the TIER3/4 countries in my case.

Let me know in case of any questions.

Regards

Dhilipan

[Former Member · Accepted solution]

Hi,

I tried to activate per your instructions, but I have still not had luck. Here are my screenshots...

Right now, I'm just trying to get the legal regulation to invoke for any export from BE to anywhere in the world so I can see it work before I continue to perform more detailed config.

Thanks,
Chris

[Former Member · Accepted solution]

I finally figured it out. There were a couple of things that I was doing incorrectly that resulted in the issues I was facing.

1. I had an existing Determination Procedure. Since there can only be one determination procedure in "Assign Determination Procedure for Active Legal Regulations," I had to modify the existing determination procedure so my desired results would appear when expected...
   • I added a second sequence number for "Determine Legal Regulation: Country/Country Group"
     • I had to add the Import / Export Partner Groups too
   • I had to change the "Determination Rule" from "Determination Using First Successful Strategy" to "Determine Using All Strategies"
     • This was important so my existing legal regulations that use the country-level determinations didn't break.

Once I made the changes above, the legal regulation determination process was acting as it should have been.

I appreciate all of your help and thanks for being patient while I was struggling with this.

Chris

[Former Member · Accepted solution]

Hey Chris,

Good news on saturday morning

I did mention the change required in determination procedure in my earlier post. Anyways, glad that it worked for you

All the best.

Regards

Dhilipan

[Former Member · Accepted solution]

The advise you provided was great. The trick was changing the "Determination Rule" from "Determination Using First Successful Strategy" to "Determine Using All Strategies" because of my previous config.

Thanks again!

[Former Member · Accepted solution]

Chris,

Yes you are right. I missed to mention about Determination Rule. I knew that trick already, but somehow didn't strike when I responded last week. Anyways, I am happy to know that you got it right finally

Regards

Dhilipan

[Former Member]

Hi Chris,

I guess both your statement and given example are contradicting things.

If you you want to restrict a trade for a particular country group, then you should assign that country group (minus non required countries) to the required Legal Regulation and can then activate them for the specified services.

Further, you can activate only the required country group for a export or import transactions.

If you want to have both the required and non required country groups assigned to a legal regulation , activate them and still want to trade in way where  valid licenses will be assigned for a particular country group and not for the other country group, then you need to maintain such a thing in License determination strategy with the settings that you mentioned in your words with dummy license provision as pointed out by dhilipan.

Regards,

Aman