How To Fix V1525 - Partner &2 (function &1) is on the Sanctioned Party list for country &3

SAP Error Message - Details

• Message type: E = Error

• Message class: V1 - Verkaufsbelegbearbeitung

• Message number: 525

• Message text: Partner &2 (function &1) is on the Sanctioned Party list for country &3

What causes this issue?

Partner &V2& in partner function &V1& is on a Sanctioned Party List.

System Response

The system allowed you to create the sales document in sales order
processing with a warning but it issued an error message when you tried
to create a delivery.

How to fix this error?

Check the foreign trade data in the customer master record for partner
&V1& &V2&, and change if necessary.
&NOTE&
Partner functions:

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

'SP' - sold-to party
'SH' - ship-to party
'BP' - bill-to party
'PY' - payer
'EN' - end customer

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message V1525 - Partner &2 (function &1) is on the Sanctioned Party list for country &3 ?

  The SAP error message V1525 indicates that a business partner (or vendor/customer) is listed on a Sanctioned Party List (SPL) for a specific country. This is a compliance-related issue that arises when a transaction involves a partner that is restricted due to legal or regulatory reasons, such as trade sanctions or embargoes.
  Cause:
  The error occurs when:
  
  The business partner (identified as &2) is found on a Sanctioned Party List for the specified country (&3).
  The function (&1) refers to the specific action or transaction being attempted (e.g., creating a purchase order, sales order, etc.).
  The system is configured to check against SPLs to ensure compliance with legal regulations.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Verify the Business Partner:
  
  Check the details of the business partner in question to confirm if they are indeed on the Sanctioned Party List.
  You can use external databases or services that provide updated SPL information.
  
  
  
  Review Compliance Policies:
  
  Ensure that your organization’s compliance policies are up to date and that you are following the necessary procedures for dealing with sanctioned entities.
  
  
  
  Consult with Legal/Compliance Team:
  
  If the business partner is essential for your operations, consult with your legal or compliance team to understand the implications and whether any exceptions can be made.
  
  
  
  Update Business Partner Status:
  
  If the business partner is mistakenly flagged, you may need to update their status in the system or provide documentation to clear them from the SPL.
  
  
  
  Alternative Partners:
  
  If the business partner cannot be used due to sanctions, consider finding alternative partners who are not on the SPL.
  
  
  
  System Configuration:
  
  Ensure that the SAP system is correctly configured to check against the most current SPLs. This may involve updating the SPL data in your SAP system.
  
  
  
  Related Information:
  
  Sanctioned Party Lists: These lists are maintained by various government agencies and organizations (e.g., OFAC in the U.S., EU sanctions lists) and are updated regularly.
  SAP Compliance Management: SAP provides tools and functionalities to help organizations manage compliance with trade regulations, including SPL checks.
  Documentation: Keep records of any checks performed and decisions made regarding business partners to ensure compliance and for audit purposes.
  
  By following these steps, you should be able to address the V1525 error and ensure compliance with relevant regulations.