Scrap

[Former Member]

Dear All,

The client wants to scrap a certain amount of material eg.MAT01.

I know it can be done through Mvt.Type 551.But the client wants to sell the scrap and also view a scrap report.

If we do a material-to-material transfer eg.MAT01 to MAT01_SCRAP then it is possible but how are there any other ways of doing it other than the standard processes eg. 551 and Mat-to-Mat Transfer.

What are the reports for viewing the same.

Regards.

[Former Member · Accepted solution]

hi,

The client wants to scrap a certain amount of material eg.MAT01.

ok.

scrap sales follows standard procedure like OR-LF-F2-EXCISE INVOICE but the treatment of excise duties is important if he is an indian customer.

you can also view scrap sales in the Z reprot which have to be developed.

regards,

balajia

[Former Member]

Treat the material as UNBW.

Create a sales order - delviery (no picking via item category). Standard TAN can be used.

IF india specfic various tax, excise and TCS applicable for sale from plant.

Regards

Dany

[Former Member]

Thanks everyone for yr. inputs.But I have one question.Why should the scrap material material type be UNBW-which is non-valuated material where only qty and not value is updated.If that is the case how to determine scrap value.

Regards.

[Former Member]

Hi,

THere is no point in having it as a valuated material as you are not going do any costing for it. As it is a by product of your manufacturing process it will not be accounted in your inventory also. So maintain it as Un-valuated.

Regards

Dany

[Former Member]

Thx.Dany.But if the client wants to know the amount in INR of scrap how to proceed with it.

Regards.

[Lakshmipathi]

if the client wants to know the amount in INR of scrap how to proceed

I feel you were confused on inventory value and sale value. The sugestion given relates to inventory value and if I am correct, you were asking on scrap sale value. There are standard reports to view like VF05, VF05N, MCTA, MCTE etc., which you can execute and arrive the scrap sales value.

thanks

G. Lakshmipathi

[Former Member]

Thanks.But the reason behind my asking this question is because sometimes the client wants to know the total scrap value present in the plant.

In such a case what is the solution.

Regards.

[Former Member]

Hi

Scrap can be transfer from material1 to material 2 with Mvt type 309 and base unit can be change by alt unit.

then same sales process with TCS condition in pricing procedure. after billing do the excies invoice.

regards

kedasu.a

[reazuddin_md]

Let me tell you, how we map this scenario in one of our projects,

Generally client will store / dump all the scrap generated in various processess from different materials/components & all this scrap posted into a seperate material ( there is no direct link like material to material to transfer). It is because, the unit of measure is not same from source material to scrap material. Hence transfer from material to material cant be used. ( if same, it could be the better way to do , normally they wont).

Then selling scrap to scrap dealers is same as normal sales.

Hope it gives an idea to proceed further.

Regards,

Reazuddin MD