scrap sales as open PO for the financial year

[Former Member]

hi ,

i have this following senario for scrap sales

the things is

My key user will create three scrap sales order on three material description say x1 x2 and x3 ,

Now they will put in the sales order some x quantity as an order quantity in KG for each sales order and wil be using for entire financial year.

and they want to do delivery and billing only according to qty and the amount they dont want to touch the sales order

My question is i understand the billing value can be changed in the billing document before posting to accounting

i understand at the delivery level at one point they might sale around 20 kg and next time they might sell around 30 kg and some time 500 kg within the financial year.

My question is can they keep these sales order as open PO till the X quanity as an order quantity is reached ?

What will be repercussions involved if they keep these three sales order as like open PO till the financial year?

And one more questions is

If there is scrap which coming out in raw material or FG which has been dealt with NOS as Unit of measurement

How will they put into the Scrap category becasue they want to sell the scrap in KG only ?

and is there any possiblites to change the unit of measurement from one material type to other material type by retaining the quantity which is identified from the qualitty side.

need your valuable inputs in this regard

[Former Member]

Hi,

It is understood that these are your requirements:

1. You want to create only one sales order for the entire year for one Scrap say, Material X1. You will create delivery, billing whenever you want within the financial year. You want to know the effect on SD and financial module if you maintain a sales order open.

2. You want to know how to covert a raw material or finished goods to scrap; practically this happens in an industry. You want to know how to deal with the Unit of measure; it differs between finished goods and scrap.

Answer:

.1. You can create one sales order for the entire year. You are not sure of the delivery date, quantity and price. Hope you are sure about the sold-to party. Create a scrap material say, SCRAPX1; the unit of measurement here is KG; net weight 1, gross weight 1.

Create a sales order for this material SCRAPX1, say for 1000 KGs. Create delivery with reference to this sales order whenever you want. Change the selling price in the billing document. You can change the quantity in the sales document instead of 1000 if it exceeds.

Effect of SD and FI module: The sales order has no effect on FI unless it is billed and accounting document generated. In SD, the sales order will be shown as incomplete sales order while doing year-end activities. To close this issue you have 2 options. Change the sales order quantity as equal to the delivered quantity in the year. Or assign u2018Reason for Rejectionu2019 in the sales order.

.2. For example, you have scrapped 500 units of finished goods u201CMAT300u201D; the unit of measure is u2018EAu2019. First you have to convert this material to scrap. Let us take you are getting 231 KGs of scrap material out of this 500 unit. The material is SCRAPX1. The unit of measure is KG.

Goto MB1A. Enter the material u2018MAT300u2019; Quantity is 500; select the movement type 551 (withdrawal for scrapping). If you check the accounting document it will show u201CFinished goods inventory credited; Raw material scrap is debitedu201D. If you check the stock of the finished goods u2018MAT300u201D, units 500 would be reduced. Now you scrapped the material.

The scrap is also treated as finished goods because we use to sell them. By scrapping 500 units of MAT300, we get 231 KGs of SCRAPX1. To get the material goto MB1C. Enter Movement type 501 (Receipt without Purchase order). Enter the material SCRAPX1. Quanity 231 kgs. If you check the accounting document it will show u201CFinished goods inventory debited; Inventory change is creditedu201D. If you check the stock of the scrap u2018SCRAPX1u201D, 231 kgs would be increased.

Now you can sell this scrap material.

This was checked in IDES. It is working fine.

Other points to be noted:

1. You have to maintain a separate sales document type for scrap sales. This will trigger to select correct pricing procedure for sale.

2. While selling scrap, you have to consider u2018Tax collected at sourceu2019.

Hope this information will be useful to you.

Regards,

K Bharathi

[Former Member]

Hi

In Material Master - Sales org data -1

maintain sales field ....KG then press enter ..now system ask the conversion factor ..u should maintain conversition factor

1 NOS = how many KGS

sesidhar

[Former Member]

Hi,

this scenario can be very well achieved.

1. Create a new sales order with huge qty which will suffice for the whole year. In case the qty is over you can simply increase the qty of the material.

2. For materials where you need a different UOM you can simply maintain the conversion in the Material master and you can use that for selling as well.

3. You can deliver the sales order as many times in year you want to deliver the same. To be on the safer side please keep validitiy of the sales order from start date to end date of the financial year. '

Please let me know if you have any more questions.

Regards

Yatin Thakkar

[Former Member]

hi,

thank for the reply

here they will bifurcate the scrap material as three they are Commponent Metals , Commponent Plastic and others.

and they are saying that they will have only three sales order with these description. and will have these order placed for the whole year.

i am having a doubt about the price for example i create a sales order for componnent metals for around 600000 kg of qty and saving it. an order number will be generated. (say 1000) now as u said they are referring the same order for the whole year during delivery and billing.

My question is : suppose after raising the order for 600000 kg of qty ( i am not mainting price in the sale order ) i want to bill the around 100 kg of scrap alone out of this 6000000 kg

it can be done in the billing but my doubt is during the time of billiing hw will i have to book the 100Kg will the system

and how will i have process the order with out the price to make the delivery and billing happen.

If i process an order with out the pricing and if i save it the order cannot be delieverd , if i remove in the log of incomplete terms will it work "

My next doubt is

Here in client they are dealing the unit of measurement for RAW materail and SFG and FG as Nos my question is

Suppose if there are any scrap made from RAW material and Fg how will the stock will be take into consideration for the

Scrap sales which are dealing with KG

EG:

While doing MIGO the quality person is deciding out 10000kg of raw material 100kg turned out to be scrap and now when he puts that material into the scrap location

how will it be converted into a scrap material which is always should be dealt in KG only

Please clairify . if ur not able to infer i will explain my question further more

thanks