Trade Agreement Qualification: Configuration Steps

The configuration for trade agreement qualification involves the following major steps:

1. Download Regulatory Data: Download the regulatory data from third-party content providers including data such as trade agreements, rules of origin, rules of origin – product specific rules, and rules of origin – rule codes. It is recommended that you create a separate data source for downloading Rule of Origin content.
2. Define Additional Data for a Trade Agreement: Additional information may need to be defined on your trade agreement after the download from a third-party content provider. This includes Rollup Allowed, Regional Value Content Methods, Dependent Formulae, and Reference Numbers that identify formulas that are used in the logic. 
3. Define Constraint Sets: Configure the constraint sets to be used for trade value lookup and origin lookup. For multi-source organizations, GTM can look up the trade value and the origin to be used during the qualification process. This lookup can be configured in the constraint set to compare inventory organization, partner, partner site, serial number, and/or lot number on the trade item structure with the trade value on the item or item origin respectively. 
4. Define Logic Configuration: Assign the trade value and origin lookup constraint sets to the logic configuration you want to use. The Logic Configuration Type is GTM TRANSACTION CONFIGURATION. When you run qualification, GTM uses the logic configuration to know which constraint sets and other data to use for matching. 
5. Define Trade Item Structure (BOM): Trade item structure and its components represent the bill of material (BOM) for your finished good. When you run qualification, you are determining whether your bill of material qualifies for the trade agreements. Multi-level BOMs are supported by the qualification engine. 
6. Define Item Additional Information: Various item-based objects need to be configured for trade agreement qualification including:
   1. Items: Items have two purposes for trade agreement qualification. Items are associated with the trade item structure and represent the finished good. They contain more information about the finished good including product classification types/codes, country of origin, and trade values. This information may be used when qualifying a trade item structure for a trade agreement. Items are also associated with a trade item structure component and represent the parts that are in the finished good. These can be parts at the lowest level or an intermediate sub-assembly. They contain more information about each part including product classification type/code, country of origin, and trade values. This information may be used when qualifying a trade item structure for a trade agreement.
   2. Item Origins: Model the item origin that is used in the calculations for trade agreement qualification. Origin can be specified either on the trade item structure or trade item structure component directly or you can model an item origin in the Trade Details tab on the associated items. Item origins can be defined for both finished goods and components. When GTM performs trade origin lookup, it uses the constraint set on the logic configuration to determine which data to compare and will process these levels in the following order:
      1. Inventory organization
      2. Partner
      3. Partner site
      4. Serial number (modeled using flex field attributes)
      5. Lot number (modeled using flex field attributes)    
   3. Item Values: Model the value or cost data that is used in the calculations for trade agreement qualification. Values can be specified either on the trade item structure and trade item structure component directly. Or, you can model them in the Trade Values tab on the associated items (recommended approach). You can model trade values at various levels. When GTM performs trade value lookup, it uses the constraint set on the logic configuration to determine which data to compare and will process these levels in the following order:
      1. Inventory organization
      2. Partner
      3. Partner site
      4. Serial number (modeled using flex field attributes)
      5. Lot number (modeled using flex field attributes)

Note: For more flexibility and to better align with other Fusion Cloud applications, it is recommended that you configure the value data on the Trade Values tab in the Item instead of on the Trade Item Structure/Components.