Financial Sanctions Screening

Financial Sanctions Screening (FSS) in the Order to Cash business process is performed by validating customer names and addresses with a variety of national and international security lists. For U.S. based companies and their foreign subsidiaries, a federal regulation from the Office of Foreign Assets Control (OFAC) requires that customers be validated against a Specially Designated Nationals (SDN) list. You can use the Screen For Denied Parties process (SCM_FSS) to screen material stock requests with a request type of:

  • External Order.

  • Interunit Transfer for VMI transactions only.

The Screen For Denied Parties process does not validate material stock requests with the request types of Internal Issue, supplier Returns, or Interunit Transfer not related to VMI transaction.

In order to screen material stock requests, you must complete the following setup steps:

  1. Select the value of Enable at Business Unit or Enable at Install for the Order to Cash field on the Financial Sanctions Options page within the Installation Options-Overall component.

  2. If the value of Enable at Business Unit was selected on the Installation Options component above, then you must enable financial sanctions screening for each inventory business unit by selecting the Screen Customer Stock Requests check box on the Inventory Definition - Business Unit Options page.

  3. Define one or more hold codes to be used by the financial sanctions screening feature using the Hold Codes page.

  4. Add a default hold code to the Installation Options-Inventory page.

    This hold code is automatically applied to any material stock request that fails to pass the Screen For Denied Parties process. The default hold code must be entered here in order for material stock requests to be screened.

To screen material stock requests for denied parties:

  1. Before shipping, run the Screen For Denied Parties process (SCM_FSS).

    This run control is located in the Inventory, Order Management, and Billing menus. The Screen For Denied Parties process can review external material stock requests and VMI interunit transfers. If the customer on the stock request does not pass the screening, then the default hold code is automatically applied to the stock request. A hold code prevents a stock request from shipping.

  2. Use the Financial Sanctions inquiry component to review the stock requests put on hold.

    The Screen For Denied Parties process only identifies potential matches to the SDN list. You must review the matches and verify with OFAC. You can use the Cancel/Hold Stock Requests page to add or remove hold codes.

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