SAP GTSe4H vs. SAP S/4HANA International Trade: Which Solution Is Right for Which Company?

In recent years, as companies have been transitioning from the legacy SAP ERP (ECC) to SAP S/4HANA, they have often first had to address the question of which functionalities are actually needed internally for the operational handling of customs and foreign trade matters. Furthermore, various functions from purchasing and sales are not available in S/4HANA in exactly the same way. Given the growing globalization of trade, the measurable share of exports and imports within companies has increased over the years, creating an urgent need for additional functionality. Users are accustomed to improvising with countless Excel spreadsheets. Of course, it is of great importance that various framework conditions have changed at the international level, as geopolitical tensions and volatile markets have altered companies’ scope for action. In the following article, you’ll learn which SAP solution is best suited for your needs and when. You’ll also receive a comprehensive overview of the features of SAP GTSe4H and SAP S/4HANA International Trade.

Advantages of SAP GTSe4H

SAP GTSe4H is definitely the “flagship solution” in the customs and foreign trade sector. Furthermore, special features – such as the mapping of U.S. re-exports or the ability to set up system-based customs communication with the respective national customs authorities in various EU and third countries – are supported out of the box. Even if a company has a well-established internal export control system in place, international contracts should include exit clauses to prepare for the “worst-case scenario.” This means that if, for example, a contract is concluded with a company from a country that is subject to a country-specific embargo before the goods are shipped, a corresponding contract clause could provide for an exit option. This ensures compliance with regulatory export control requirements and avoids potential costs resulting from, for example, non-delivery.

Batch management – which is also internationally significant for certain industries – can be implemented across systems through a custom development. It may also be worthwhile to conduct internal calculations to determine whether, for example, regular preferential tariff calculations or a customs warehouse with inward processing are cost-effective. For companies that must navigate moderate to complex regulatory requirements, GTSe4H is the obvious choice.

When using GTSe4H, the logical responsibility for tariff classification shifts entirely from the upstream S/4 system to GTSe4H. Through a process known as “reallocation,” the statistical commodity codes and customs tariff codes are then replicated back into the S/4 upstream system.

GTSe4H is a standalone system that can be integrated with various SAP or non-SAP source systems. Foreign trade-related master and transaction data are transferred to GTSe4H via an RFC interface. This allows relevant documents, such as invoices or pro forma invoices, to be replicated in real time for further processing – such as the creation of a customs declaration. This means that the customs declaration is already pre-filled at the header and line item levels and ready for final detailed entry. If desired, GTSe4H could even halt the process chain in the source system in advance by blocking the document following a comprehensive sanctions list check and a “positive match,” so that only an authorized person can release the entire process again.

Function Overview: SAP GTSe4H

Customs Management

• Erstellung von Zollanmeldungen in Export und Import
• Aktive Veredelung, passive Veredelung, Import mit NCTS-Verfahren
• Tariff Classification of Materials
• Bonded Warehouse

Compliance Management

• Comprehensive sanctions list checks
• Classification of Materials (e.g., Dual-Use)
• Permit Management (including ELAN-K2 connection to BAFA)
• Embargo Management

Risk Management

• Präferenzabwicklung (Verwaltung von Lieferantenerklärungen sowie Präferenzkalkulation einschl. KMAT)

Intrastat

• Monthly reporting of inbound and outbound goods movements within companies and within the EU

Benefits of SAP S/4HANA International Trade

The International Trade module in S/4HANA is one of the core applications and is included in the SAP S/4HANA license. If a company’s expected share of exports and imports is likely to remain relatively low in the future, this solution may be entirely sufficient. Essentially, International Trade is limited to export controls such as the classification of dual-use materials, the simple, system-based application of an embargo, and sanctions list checks. For the latter, however, an add-on called “Watch List Screening” (included with the SAP license) is required.

In S/4HANA International Trade, the well-known transaction VE94 can no longer be used to manually upload data content – such as new statistical commodity codes (e.g., Sovaleit file). Instead, the current data content in XML format is now “retrieved” from a data provider via an RFC connection.

Function Overview: SAP S/4HANA International Trade

Compared to GTSe4H, the functionality is somewhat limited in depth.

Customs Management

• Tariff Classification of Materials

Legal Control

• Sanctions List Check with SAP Watch List Screening
• Embargo Management
• Classification of Materials (e.g., Dual-Use)
• Approval Management (no nested approvals as possible in GTSe4H)

Intrastat

• Monthly reporting of inbound and outbound goods movements within companies and within the EU

Conclusion

The technical implementation of the monthly Intrastat reporting is the same for all European countries in SAP GTSe4H and SAP S/4HANA International Trade. However, the content of the monthly report may vary slightly due to differing national requirements.

Both systems also feature user-friendly Fiori interfaces. Even AI support for tariff classification and the classification of, for example, dual-use materials is available in both systems. This is possible starting with versions GTSe4H 2025 FPS01 and S/4HANA 2608. Unfortunately, it is currently too early (as of September 2026) to make a well-founded, comprehensive statement about the AI user experience.

In both systems, however, fuzzy search is now available. This means that suggestions are generated through a similarity search. The goal is to increase accuracy in the customs-compliant description of goods or in the tariff classification of materials through precise, company-specific settings. Ultimately, users still make the final decision regarding tariff classification.

A key difference between the two systems is that International Trade does not include customs or preferential trade processing with determination of the origin of goods. This means the company incurs additional costs and time spent on data maintenance for third-party systems or web applications. Furthermore, companies forgo potential customs benefits that “well-maintained” preferential trade processing and calculation in international trade can offer.

Even if a company needs to implement U.S. re-export controls, GTSe4H should be considered. Routine and consistent master data maintenance is mandatory for all users – and, of course, in both systems.

Overview of the Functional Scope Between GTSe4H and S/4HANA International Trade

Note: This overview does not distinguish between different levels of functionality. The list is for illustrative purposes only and is not exhaustive.

*Compared to GTSe4H, S/4HANA offers limited functionality with the add-on and the SAP “Watch List Screening” license

What are the current pain points in companies, and what solutions does adesso offer?

The logical predecessor to GTSe4H is GTS11.0, which has been tried and tested for approximately 25 years; SAP guaranteed support for it through December 31, 2025. This means that, since then, there have been no system-level updates in GTS11.0 to address any changes in regulatory requirements. Internationally operating companies would be well advised to switch to the new GTSe4H through a conversion. Examples of current regulatory changes include, for instance, a minor change in the technical framework for submitting the monthly Intrastat declaration. Additionally, there will be major changes at the European level regarding supplier declarations in June 2028.

To ensure legally compliant and cost-effective processes within the company, an analysis of customs and foreign trade processes—followed by their implementation in GTSe4H or S/4HANA – could be highly beneficial. Users will receive in-depth training in both customs regulations and system technology, ensuring that companies are well-prepared for any visits by customs authorities (e.g., an audit of the “audit trail within the company”), by the BAFA, or during other audits.

Drawing on years of experience across various industries (e.g., mechanical engineering or chemicals) and highly company-specific project requirements, adesso business consulting provides you with tailored advice on a goal-oriented system architecture.

If you have any questions about SAP GTSe4H and SAP S/4HANA International Trade, we are of course happy to assist you. You can also find more information here on our website. We look forward to hearing from you!