scrap goods

[Former Member]

in companies ,they will create scrap sales order, Replacement order.

Plz do explain , why they will maintain scrap doc tpes, and also replacement orders

[Former Member]

SALE OF SCRAP

The sale of scrap (non-stock) shall be mapped as a direct manual FI entry. The customer will be created as a FI customer. No Logistics module will be involved in the process.

A FI Invoice will be prepared for the sale of scrap with the following entries:

Customer (Dr)

Sale of Scrap(Cr)

Excise Duty Payable(Cr)

Accounting entry for scrap

Accumulated Depreciation(Dr)

Loss on Sale of Assets(Dr)

Asset account(Cr)

Scrap Sale Process is similar to Normal Sales process, except for Pricing Procedure. In Scrap Sale Pricing Procedure, at the end of the procing Procedure, we require to configure TCS (Tax Collected at Source) condition type, which is payable to the Government. TCS % details are normally provided by the Client.

I repeat that as concerned for Process, it is same as Normal Sales order.

One important information is if we are unable to identify the scrap material, then we can have a separate Material Code for Scrap Items & the stock can be generated using T.Code: MB1A & movement type 502.

Reward points if helpful

[Former Member]

Hi,

Both scrap sales and replacement order follow the std. return process in sap.But the diffrenece with movement types and there is no avalabilty checks in place .

This is depends on the process they follow.

Scrap sales companies normally follow FI(sundry debtors) process to create invoice.That means there is no order to cash process here.

Replacement orders we use return item categories in the copy controls.

If you need more clarity revert back pls.

Regards,

Chandra