How to Bill scrap material?

[former_member204407]

Dear Experts,

Our Client is going to send single Heavy metal scarp material (1 MT) to the customer but customer will accept the same material (by using Weigh Bridge Management System & foreman) into three to four sub materials like Heavy metal/Low size/Oversize/Trash

Customer will give the scale ticket for accepted materials and client needs to bill for the customer accepted materials.

How can we achieve this scenario in SD?

Thanks,

Krishna.

[Lakshmipathi]

The end customer can accept in whatever way they want but ultimately, your client has to decide how much money needs to be collected for that scrap material.  So in SAP, you can very well maintain condition record for the same.

G. Lakshmipathi

[former_member204407]

Hi Sir,

Thank you very much for your reply.

Ex:

Client will send the material 1 MT with rate of 1400 SAR (Per kg=1000/1400=1.4 SAR)

But customer will accept the same material with different material & price

HM- 0.700 MT        = 980 SAR

LS- 0.100 MT         = 100 SAR(actual is rate 1.4 SAR per KG but customer is giving 1 SAR per kg)

OS-0.1 MT             =   90 SAR(actual is rate 1.4 SAR per KG but customer is giving .09 SAR per kg)

TRASH 0.1 MT      =     0 SAR (actual is rate 1.4 SAR per KG but customer is giving 0 SAR per kg)

(* Trash can take it our client place or some time leave it customer place also)

Total acceptance qty 1 MT with value of 1170 SAR

Now from client side

Quantity loss is 0 .1 MT as Trash & Quality loss=LS(40 SAR)+ OS(50 SAR) +Trash(140 SAR)=230SAR

so I need to bill to the customer only 1170 SAR with three line items(Trash will not considered as billable item)

and i need to capture the losses in client side.

How can I proceed.

Kindly suggest.

Thanks.

Krishna.

[former_member182378]

Krishna,

So in this scenario, the sales order will have one line item with 1MT of Scrap material.

But in the billing document you want 4 line items:

details with qty and amount:

HM- 0.700 MT        = 980 SAR

LS- 0.100 MT         = 100 SAR(actual is rate 1.4 SAR per KG but customer is giving 1 SAR per kg)

OS-0.1 MT             =   90 SAR(actual is rate 1.4 SAR per KG but customer is giving .09 SAR per kg)

TRASH 0.1 MT      =     0 SAR (actual is rate 1.4 SAR per KG but customer is giving 0 SAR per kg)

Is the above details correct? (in order and bill)

I am guessing that in delivery the details with be same as that in sales order (1MT of scrap material - one line item).

TW

[former_member204407]

Hi TW,

Yes you are correct!

Sales order>Delivery>Picking>PGI with  single line item but Billing  with 4 materials(as per customer acceptance like above example).

Thanks,

Krishna.

[former_member182378]

Krishna,

Please think about the below proposal:

Sales order (with 1 line item) > Delivery > PGI > Billing document (with 1 line item, price deactivated; no accounting document) > Debit memo request (with 4 line items and pricing) > Debit memo

Debit memo created with ref to billing document, manually the items are edited by user based on the input by customer.

TW

[former_member204407]

Hi TW,

Thanks for your post!

the similar solutions below I proposed.

1.Sales Order with single line item>Delivery,Picking,PGI with single line item>proforma Invoice>with reference proforma invoice>Invoice Correction order(delete the reference item and manually add 4 line items)>Final Billing.

(i made some changes in the copy control settings and pro form billing  document type level)

2.Sales Order with single line item>Delivery,Picking,PGI with single line item> Invoice> Correction order(in that manually add 4 line items) and put reason for rejection manually for all line items( & no Billing

from FI point of view we need to capture the difference amount through FB75 and at the same time both correction order and finance document documents numbers needs to be updated in some custom field in order level .

all the four line items we need to capture for reporting purpose.

at the same time inventory should reduce to the main item only.

client is not sending any invoice print out because  billing is happening based on customer accepted weight ticket.

kindly let me know if you need any further inputs.

Thanks,

Krishna.

[former_member182378]

Krishna,

Thanks for your post!

As suggested earlier, I will go for 1 with Debit process, rather than invoice correction process.

Would creating a proforma, leave the status of the order as Open? and further these order can be billing later (by mistake by an user) I will go for a billing document rather than a proforma. This billing document will not have any prices OR you can go for proforma but see how you can change the status to Complete, after proforma invoice is created.

Also limit the number of proforma invoices to 1 (original). No duplicates possible.

The debit memo request should be created only with ref. to billing document. (configuration setting: mandatory reference in sales document type)

For client material which populates the original process, I will maintain inventory and for the debit process (materials details given by customer) I will not maintain inventory.

TW

[former_member204407]

Hi TW,

Thank you for your reply!

Would creating a proforma, leave the status of the order as Open? and further these order can be billing later (by mistake by an user)

In VOV8 settings delivery related billing as proforma invoice then it won't be any problem  because status will not update in sales order.

But anyway I am not going with proforma invoice option.

Coming to the scenario I am looking for the second option and what you proposed both I am checking.

Sales order>Delivery>Billing>New order with reference to billing (copy of Return order)>manually close sales order line items>FB75

When I take the original billing document reference it will copy the entire  quantity in New sales order  but again I am changing the quantity manually 1 MT to 0.800 MT

here the problem is I can able to do one more order with 0.200 pending quantity.

I am checking how to close the reaming quantity.

I will update you once I finished my testing.

keep posting any further inputs.

Thanks,

Krishna.

[former_member182378]

Krishna,

Please confirm the below two points:

The material name in your company will be Heavy metal scrap but the customer may call it one among three names (descriptions) Heavy metal/Low size/Oversize/Trash?

Also, the weight given by customer needs to be updated in the sales, billing documents?

Will the unit be same - given by your company (MT) and your customer?

From weight perspective, this scenario resembles POD functionality.

added:

Billing document will be created only after receiving this "confirmation" from customer?

Could customer send the load back to the client? In that case how do you want to handle it?

Does client want to keep track of scrap stock? (inventory)

When there is a disparity between qty in order and confirmation qty, then how does client want to handle this?

TW

Message was edited by: TW Typewriter - additional questions, in blue

[former_member204407]

Hi TW ,

Thanks for your quick reply.

The material name in your company will be Heavy metal scrap but the customer may call it one among three names (descriptions) Heavy metal/Low size/Oversize/Trash?

customer will take the single material in to multiple items based on their foreman instructions.

yes the same material will have a different descriptions in customer side.

Also, the weight given by customer needs to be updated in the sales, billing documents?

yes weight needs to be updated in billing not required in sales order.

Will the unit be same - given by your company (MT) and your customer?

customer & client sides we are using MT only.

From weight perspective, this scenario resembles POD functionality.

but in POD concept we can confirm the quantity with single line item only.but my requirement is multiple line items i need to bill to the customer as per customer scale ticket.

Billing document will be created only after receiving this "confirmation" from customer?

Yes

Could customer send the load back to the client? In that case how do you want to handle it?

we need to create a return order for customer return stock

Does client want to keep track of scrap stock? (inventory)

client also created same materials as per the customer accepted material description

inventory 1 MT-HM

customer accepted like below

HM-    0.7 MT

LS-     0.1 MT

OS-    0.1 MT

Trash- 0.1 MT

When there is a disparity between qty in order and confirmation qty, then how does client want to handle this?

Needs to maintain a new Z report loss against the materials accepted qty and loss quantity.

Please let me know any further inputs required.

Thanks,

Krishna.