regarding scrap sales

[Former Member]

Hi Friends

what is scrap sales means?

can anyone give me example?

plz reply me

[Lakshmipathi · Accepted solution]

Dear Venkata Ramana

In a manufacturing industry, while producing the products in-house, there would be some process waste. This cannot be reused and should be disposed off. The accumulation of this waste material is nothing but scrap material. In industry terminology, we will call this as process scrap.

There are other types of scraps also like customer rejections, tools scraps etc., Once you sell some products and at a later date, due to some reason, the customer will reject and return the same to manufacturer. Part of the components can be reused and part of the components cannot be reused. So whatever parts cannot be reused will be disposed off as scrap sales.

Similarly, for producing the products in-house some tools would be used which will be broken while in operation. Over a period of time, these broken pieces will be disposed as scrap sales

If you want to address this in SAP, you need to customise the following:-

- Separate sale order type

- Separate Pricing Procedure with condition type for TCS (Tax Collected at Source)

- Assign the sales area to this sale document type in OVAZ

- Maintain the sales area to this pricing procedure in OVKK

thanks

G. Lakshmipathi

[Former Member]

Hi,

Scrap sales means selling the unused material from the plant or from the company.

Say example in the return process if the customer return the material because of the damage.

These material are checked by the Quality and if they will process it to make the Finish goods , if fails the material is called as scrap.

the Scrap material is a combination of all the material in the company.

As ususal sales process take place with taxes,

Create a sales order VA01.

u2022 Material Master.

u2022 Pricing Conditions.

u2022 Sales Tax

u2022 Excise duty and other Excise condition types

u2022 Other condition types

where material it self is a scrap. measured in KG. depending upon the business.

Applicable for taxes and surcharges same as normal sales.the price differ as per the customer.

create a delivery.

Create a billing

create a excise invoice (j1iin) in indian scenario.

Print excise invoice (j1ip).

thanks

Kuntla

[Former Member]

Thanks for ur reply friends