scrap sale

[Former Member]

what is material type and for scrap good

and how to sale the scrap material is there is any specific setting for that

thanks in advance

[Lakshmipathi · Accepted solution]

Dear hanumant

- Material type should be FERT with no MRP views but to maintain Accounting and Costing views.

- Seperate pricing procedure for scrap sales with a condition type for Tax Deducted at Source

- Seperate storage location should be created for scrap yard

- As and when scrap is generated, create a sale order based on the available stock, do delivery and invoice.

thanks

G. Lakshmipathi

[Former Member]

thanks friends !!!

but need few guidance more

when the material having type is raw material or any machinary ( those material not belong with material type FERT) that material after use and when become unusable (SCRAP) that material need to change or extend his material type for FERT (is it right?????)

and why we need condition TDS

though the it is normal sales revenue

[Former Member]

Hai friend,

U can have scrap sales with a different pricing procedure.And material type for Scrap can be SFG/FG and you have to maintain a account assignment group" S" scrap sales in sales and distribution -->basic functions >Account Assignment>Revenue account determination-->Check master data

And item category group you can put "NORM" and material tax classification you can maintain

and mainatin the material in scrap division. make a division of scrap.

If further queries let me know

With Regards

Saju

[Former Member]

Hello Hanumant,

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 "TDS (tax deducted at source). Normally the rate for this condition type will be "1.133%". You can create a condition type say "ZTDS" for scrap sale with

condition class: "A"

calculation type: "A"

condition category: "D"

Assign a suitable acces 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.

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.

With best regards,

Allabaqsh G. Patil