scrap sales

[Former Member]

Dear all,

My client is doing scrap sales.

How it can be captured in SD-SAP?

[Former Member]

done

[Former Member]

Hello,

Material type for Scrap:

You sell the scrap & it generates revenue for the organization. So you can use FERT for creating the scrap material. But you can create a new one also but the assignment will have to be done accordingly for FI-MM integration for respective G/L accounts.

No MRP is required for this. The scrap keeps on generating & you can store it in a separate storage location in the plant. As & when it is decided to sell the scrap, create a sales order & complete the cycle.

Pricing:

The normal pricing procedure which you use to sell the finished products can be used for selling scrap. Only thing extra in scrap sales is an additional condition type for "TCS (tax calculated at source). Normally the rate for this condition type will be "1.133%". You can create a condition type say "ZTCS" for scrap sale with

condition class: "A"

calculation type: "A"

condition category: "D"

Assign a suitable access sequence to the condition type & maintain the condition record using VK11.

Whenever you creat a sales order the extra condition type will be determined & rest cycle will be the same.

In the pricing procedure assign an account key say TCS (first create a new account key). You have to assign account key TCS because the posting of the tax ZTCS may have to be done in a separate G/L account. You can maintain the G/L account assignment for TCS account key in transaction code VKOA.

Excise invoice will also be generated if the scrap material is excisable. For this you have to maintain the relevant chapter ID for the scrap material in J1ID.

Hope this gives gives you some idea about scrap sale.

With best regards,

Allabaqsh G. Patil

[Former Member]

<b>Pricing Procedure</b>

In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.

In SD, the steps to configure Pricing procedure are as under:

Step 1:

Condition table: If existing condition table meets the requirement, we need not create a new condition table. Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Table (select the required fields combination, which will store condition record).

Step 2:

Access Sequence: If existing access sequence meets the requirement, we need not create a new access sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Access Sequence (Access sequence is made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition table to access sequence.

Step 3:

Condition Type: If existing condition type meets the requirement, we need not create a new condition type. Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Type. It is always recommended to copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence to Condition type. <u><i><b>Ensure to create a TCS i.e Tax Collected at source Condition Type, as a copy of discount & surchage condition tpe & place it as the last Condtion in Pricing Procedure, which requires to collected from the vendor & paid to Government (in Indian Scenario)</b></i></u>

Step 4:

a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Maintain Pricing Procedure.

b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing Procedure --> Determine Pricing Procedure.

5. Condition record: Condition record is a master data, which is required to be maintained by Core team / person responsible from the client. During new implementation, the condition records can be uploaded using tools like SCAT, LSMW, etc.

<b>Scrap Sales Order Cycle</b>:-

Step 1: Sales Document Type

IMG > Sales and Distribution > Sales > Sales Documents >

Sales Document Header:

1. Sales Document Type:The sales document types represent the different business transactions, such as Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar sales order. If possible use standard sales order.

2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.

3. Assign Sales Area To Sales Document Types:

A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these, else Sales Order creation will give error.

B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required Sales Area. This will minimize selection of Sales Order Type as per sales area.

Sales Document Item:

1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as from standard & maintain New.

2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type + Item Category Group + Usage + Higher Level Item Category = Item Category

Schedule Line:

1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.

2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.

Step 2:

IMG > Logistic Execution > Shipping > Deliveries >

1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery Type. Incase if required to create new, copy as from standard & maintain New.

3. Define Number Ranges for Deliveries: Ensure to maintain number range.

Step 3:

IMG > Sales and Distribution > Billing >

1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from standard & maintain New.

2. Define Number Range For Billing Documents: Ensure to maintain number range.

3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to Billing, Deliver to Billing, etc.

<b>Stock for Scrap Sale</b>:

There are 2 options -

1. Scrap material can be identified as regular material at the point of sale. If yes, then we can use the same material in Sales Order.

2. Scrap material cannot be identified as regular material at the point of sale. For Eg: A Automotive seat manufacturing company purchases different grades of foam, but has a single scrap yard for foams. Now at the point of sale it may not be possible to differentiate. But we require a material & stock to sell scrap. We can create a dummy material say 'scrapfoam' & as concerned for stock, we can generate stock as per requirement through T.Code: MB1A, using movement type 502.

Regards,

Rajesh Banka

[Lakshmipathi]

Dear Veera

First and foremost important thing is that for scrap sales, you should have created a new pricing procedure in which you have a condition type for TCS and necessary Account Key is assigned to this.

As and when scraps are generated, create a sale order according to the scrap quantity available, do PGI and invoice.

thanks

G. Lakshmipathi

[Former Member]

Hi

Why TCS & account KEY ?

[Lakshmipathi]

Dear Veera

As you would be aware in normal sales, we use to charge sales tax on buyer. Similarly, for scrap sales, you need to collect Tax Collected at Source which is another type of tax you are collecting from the buyer.

thanks

G. Lakshmipathi

[former_member550050]

T code MB1B

Movement typr 501

Regards

raja

[Former Member]

Thanks lot Ramanathan.

But how to raise the Invoice for the Customer ?