Step 1: Sales Document TypeIMG > Sales and Distribution > Sales > Sales Documents >Sales Document

Header:1. Sales Document Type:The sales document types represent the different business transactions, such as In uiry, !uotation, Sales "rder, etc. To create ne# sales order type, al#ays copy as #ith reference to similar sales order. If possible use standard sales order.$. Define %umber &an'es (or Sales Documents: Maintain number ran'e #ith discussion #ith core team.). *ssi'n Sales *rea To Sales Document Types: *. +ombine sales or'ani,ations - +ombine distribution channels - +ombine di.isions: /nsure to maintain these, else Sales "rder creation #ill 'i.e error.0. *ssi'n sales order types permitted for sales areas: *ssi'n only re uired Sales "rder Types to re uired Sales *rea. This #ill minimi,e selection of Sales "rder Type as per sales area. Sales Document Item:1. Define Item +ate'ories: If possible use Standard Item +ate'ory. Incase if re uired to create ne#, copy as from standard 1 maintain %e#.$. *ssi'n Item +ate'ories: If possible, use standard. (ormula for deri.in' item cate'ory: Sales Document Type 2 Item +ate'ory Group 2 3sa'e 2 Hi'her 4e.el Item +ate'ory 5 Item +ate'ory Schedule 4ine:1. Define Schedule 4ine +ate'ories: If possible use Standard Schedule 4ines. Incase if re uired to create ne#, copy as from standard 1 maintain %e#.$. *ssi'n Schedule 4ine +ate'ories: If possible, use standard. (ormula for deri.in' Schedule 4ine: Item +ate'ory 2 M&6 Type - %o M&6 Type. Step $:IMG > 4o'istic /7ecution > Shippin' > Deli.eries > 1. Define Deli.ery Types: If possible use Standard Deli.ery Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#.$. Define Item +ate'ories for Deli.eries: If possible use Standard Item +ate'ories for Deli.ery Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#.). Define%umber&an'es for Deli.eries: /nsure to maintain number ran'e. Step ): IMG > Sales and Distribution > 0illin' >1. Define 0illin' Types: If possible use Standard 0illin' Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#.$. Define %umber &an'e (or 0illin' Documents: /nsure to maintain number ran'e. ). Maintain +opyin' +ontrol (or 0illin' Documents: Maintain rele.ant copy controls such as Sales "rder to 0illin', Deli.er to 0illin', etc. Stock for Scrap Sale:There are $ options 8 1. Scrap material can be identified as re'ular material at the point of sale. If yes, then #e can use the same material in Sales "rder. $. Scrap material cannot be identified as re'ular material at the point of sale. (or /': * *utomoti.e seat manufacturin' company purchases different 'rades of foam, but has a sin'le scrap yard for foams. %o# at the point of sale it may not be possible to differentiate. 0ut #e re uire a material 1 stoc9 to sell scrap. :e can create a dummy material say ;scrapfoam; 1 as concerned for stoc9, #e can 'enerate stoc9 as per re uirement throu'h T.+ode: M01*, usin' mo.ement type <=$. Note: In Indian /n.ironment, ensure to add T+S >Ta7 +ollected at Source? +ondition Type in 6ricin' 6rocedure. Hi Sai, Scrap sales is predominantly used for sellin' of scrap materials #hich are not part of standard finished products of the company. i.e. the ori'inal (inished 6roduct mi'ht be scrapped due to bama'e or it could be some machinary in plant that may be scrapped and then sold etc..

@ou can confi'ure a separate Sales order to billin' cycle #itha separate pricin' procedure as pricin' conditions for sellin' of scrap material may be different from their normal products. *lso chec9 on #hat mo.emnt type to use in the schedule line cat. If it is different from A=1, then determine a ne#ly created S4+ #ith the re uired Mo.ement type assi'ned. +.Barthi9. Hi,

Cb>Scrap Sales:C-b> In a manufacturin' industry say for e7ample machine components are manufatured from steel bars. So durin' machinin' - turnin' of the ra# material turnin' scrap is 'enerated in the form of Cb>DchipsDC-b>. *'ain you #ill ha.e scrap for stationary #hich is used, then scrap in the form of Cb>Dused coolant oilDC-b>, Cb>Dcotton #asteDC-b>, Cb>Ddefecti.e pac9in' materialDC-b>, etc.

The scrap also 'enerates re.enue as it is saleable in the scrap mar9et. :hen #e sell the scrap it is called as scrap sales.

Cb>&ole of scrap sales in SD:C-b> The scrap material is also considered as finished 'oods #ith no Cb>M&6C-b>. *s and #hen a suficient ty is 'enerated then the mana'ement can decide to sell it. Cb>* sales order is 'enerated, deli.ery 2 6GI and then in.oice and e7cise in.oice if the scrap material is e7cisable.C-b>

Cb>+onfi'uration 1 settin's:C-b> Cb>Material typeC-b> 8 It should be Cb>(/&TC-b> only #ith no Cb>M&6C-b> settin's, Cb>no uality, no forecastin'. *ccountin' 1 +ostin' #ill be there as #ell as plant stoc9C-b>.

Cb>6ricin'C-b> 8 The pricin' procedure #ill be the same e7cept for scrap sales you ha.e an e7tra condition type for Cb>DT+S 8 ta7 deducted at sourceDC-b>. The rate of this is may be Cb>D1.1))EDC-b> So in your pricin' procedure you #ill ha.e to include an e7tra condition type say for e':Cb>FT+SC-b>.

&est e.erythin' is the same.

&e#ard points if solution helps.

&e'ards,

:hat is Scrap sales 8 %ormally Scrap Materials are the ones #hich cannot be sold either as (inished Goods or Seconds, and has no stora'e .alue or internal usa'e .alue to the or'ani,ation. The or'anisation then needs to sale off the scrap at a specially discounted rate, to reco.er some .alue.The sellin' of scraps decreases the Stora'e costs and increases the +ost efficiency of the :arehouse-Stora'e locations.

&ole of scrap sale in SD 8 The scrap sales is treated in SD in a similar #ay as #e treat normal sales.i.e Sale order 88 Deli.ery 6GI In.oice 88accountin'. 0ut , the sales area for scrap sales should be different.

). +onfi'uration 8 (or this the Di.ision is defined for Scrap sales and assi'ned accordin'ly. >refer set up sales area 88 "GHG?. Separate Sales "rder type 2 Deli.ery 2 0illin' is defined. The scrap material master is defined by assi'nin' the di.ision to the materials.&e.enue account determination is set up for scrap sales G-4 accounts.> GB"*?.+ustomer master to be created for Scrap sales area.*ll other SD rele.ant seetin's to be maintained. 0ut the transaction process to be follo#ed as per normal SD process. 'o to M01* Mo.ement type menu > Scrappin' > from #arehoue > unresticted use - !uality stoc9 - 0loc9ed stoc9 Mo.ement types <<1 for unresticed use,<<) for uality inspection ,<<< for bloc9ed stoc9

@ou can scrap the material from 3n8restricted Stoc9 or 0loc9ed Stoc9.

3se M.T <<1 in T+ode M01* or MIG"8>Goods Issue if the stoc9 is in 3n8restricted

3se M.T <<< if the stoc9 is in 0loc9ed Stoc9

In these transaction, 'i.e the +ost +entre and G4 *ccount to #hich the .alue of the Scrap Material is to be posted. +reate scrap materials usin' Material type *0( or a copy of *0(.

If the 3"M of 0yproducts 1 Scrap are the same then do a material to material transfer usin' )=I mo.ements.

+reate a sales orderJ perform the Deli.ery 1 +ustomer In.oicin'.

If the 3"M is different then do a 'oods issue to scrap of 0y86roduct usin' <<1>MIG"-M01*?.6erform a <=1 mo.ement for scrap material 1 then perform the Sales order, Deli.ery 1 customer In.oicin' 6rocess. If you #ant to sell scrap material, you can transfer your material type from your material type to material type D#asteD or create material #ith material type #aste.

Then the flo# of scrap sales: 1?+reate a scrap sales order >G*=1? ( $? Scrap deli.ery >G4=1%? )? 6GI >G4=$%? K? 6erforma in.oice >(L? or sales In.oice >($? >G(=1? and <? if e7cise is applicable for the scrap, then e7cise in.oice >M1II%? after sales in.oice.

&e'ards,

SCRAP SALES CYCLE

Scrap Sales

(irst and foremost important thin' is that for scrap sales, you should ha.e created a ne# pricin' procedure in #hich you ha.e a condition type for T+S and necessary *ccount Bey is assi'ned to this.

*s and #hen scraps are 'enerated, create a sale order accordin' to the scrap uantity a.ailable, do 6GI and in.oice.

:hy T+S 1 account B/@ N

*s you #ould be a#are in normal sales, #e use to char'e sales ta7 on buyer. Similarly, for scrap sales, you need to collect Ta7 +ollected at Source #hich is another type of ta7 you are collectin' from the buyer.

6ricin' 6rocedure In SD, 6ricin' 6rocedure is determined based on Sales *rea >Sales "r'ani,ation 2 Distribution +entre 2 Di.ision? 2 +ustomer 6ricin' 6rocedure 2 Document 6ricin' 6rocedure. Sales *rea is determined in Sales "rder Header 4e.el. +ustomer 6ricin' 6rocedure is determined from +ustomer Master. Document 6ricin' 6rocedure is determined from Sales Document Type - 0illin' Type >if confi'ured?. "nce the pricin' procedure is determined, +ondition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricin' condition is missin', system #ill throu'h an error messa'e.

In SD, the steps to confi'ure 6ricin' procedure are as under: Step 1: +ondition table: If e7istin' condition table meets the re uirement, #e need not create a ne# condition table. +onsiderin' the re uirement for ne# condition table, the confi'uration #ill be done in spro as follo#s: IMG 88> Sales 1 Distribution 88> 0asic (unction 88> 6ricin' +ontrol 88> +ondition Table >select the re uired fields combination, #hich #ill store condition record?. Step $: *ccess Se uence: If e7istin' access se uence meets the re uirement, #e need not create a ne# access se uence. +onsiderin' the re uirement for ne# se uence, the confi'uration #ill be done in spro as follo#s: IMG 88> Sales 1 Distribution 88> 0asic (unction 88> 6ricin' +ontrol 88> *ccess Se uence >*ccess se uence is made up of *ccesses >Tables? 1 the order of priority in #hich it is to be accessed. Here #e assi'n the condition table to access se uence. Step ): +ondition Type: If e7istin' condition type meets the re uirement, #e need not create a ne# condition type. +onsiderin' the re uirement for ne# condition type, the confi'uration #ill be done in spro as follo#s: IMG 88> Sales 1 Distribution 88> 0asic (unction 88> 6ricin' +ontrol 88> +ondition Type. It is al#ays recommended to copy an e7istin' similar condition type 1 ma9e the neccessary chan'es. Here #e assi'n *ccess se uence to +ondition type. /nsure to create a T+S i.e Ta7 +ollected at source +ondition Type, as a copy of discount 1 surcha'e condition tpe 1 place it as the last +ondtion in 6ricin' 6rocedure, #hich re uires to collected from the .endor 1 paid to Go.ernment >in Indian Scenario?

Step K: a. 6ricin' 6rocedure: It is recommended to copy a similar pricin' procedure 1 ma9e the neccesary chan'es in ne# pricin' procedure. 6ricin' 6rocedure is a set of condition type 1 arran'ed in the se uence in #hich it has to perform the calculation. +onsiderin' the re uirement for ne# 6ricin' 6rocedure, the confi'uration #ill be done in spro as follo#s: IMG 88> Sales 1 Distribution 88> 0asic (unction 88> 6ricin' +ontrol 88> 6ricin' 6rocedure 88> Maintain 6ricin' 6rocedure. b. 6ricin' 6rocedure: *fter maintainin' the pricin' procedure the ne7t step #ill be determination of pricin' procedure. +onfi'uration for determinin' pricin' procedure in S6&" is as follo#s: IMG 88> Sales 1 Distribution 88> 0asic (unction 88> 6ricin' +ontrol 88> 6ricin' 6rocedure 88> Determine 6ricin' 6rocedure. <. +ondition record: +ondition record is a master data, #hich is re uired to be maintained by +ore team person responsible from the client. Durin' ne# implementation, the condition records can be uploaded usin' tools li9e S+*T, 4SM:, etc.

Scrap Sales "rder +ycle:8

Step 1: Sales Document Type IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header: 1. Sales Document Type:The sales document types represent the different business transactions, such as In uiry, !uotation, Sales "rder, etc. To create ne# sales order type, al#ays copy as #ith reference to similar sales order. If possible use standard sales order. $. Define %umber &an'es (or Sales Documents: Maintain number ran'e #ith discussion #ith core team. ). *ssi'n Sales *rea To Sales Document Types: *. +ombine sales or'ani,ations - +ombine distribution channels - +ombine di.isions: /nsure to maintain these, else Sales "rder creation #ill 'i.e error. 0. *ssi'n sales order types permitted for sales areas: *ssi'n only re uired Sales "rder Types to re uired Sales *rea. This #ill minimi,e selection of Sales "rder Type as per sales area.

Sales Document Item: 1. Define Item +ate'ories: If possible use Standard Item +ate'ory. Incase if re uired to create ne#, copy as from standard 1 maintain %e#. $. *ssi'n Item +ate'ories: If possible, use standard. (ormula for deri.in' item cate'ory: Sales Document Type 2 Item +ate'ory Group 2 3sa'e 2 Hi'her 4e.el Item +ate'ory 5 Item +ate'ory

Schedule 4ine: 1. Define Schedule 4ine +ate'ories: If possible use Standard Schedule 4ines. Incase if re uired to create ne#, copy as from standard 1 maintain %e#. $. *ssi'n Schedule 4ine +ate'ories: If possible, use standard. (ormula for deri.in' Schedule 4ine: Item +ate'ory 2 M&6 Type - %o M&6 Type.

Step $: IMG > 4o'istic /7ecution > Shippin' > Deli.eries > 1. Define Deli.ery Types: If possible use Standard Deli.ery Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#. $. Define Item +ate'ories for Deli.eries: If possible use Standard Item +ate'ories for Deli.ery Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#. ). Define %umber &an'es for Deli.eries: /nsure to maintain number ran'e.

Step ): IMG > Sales and Distribution > 0illin' > 1. Define 0illin' Types: If possible use Standard 0illin' Type. Incase if re uired to create ne#, copy as from standard 1 maintain %e#. $. Define %umber &an'e (or 0illin' Documents: /nsure to maintain number ran'e. ). Maintain +opyin' +ontrol (or 0illin' Documents: Maintain rele.ant copy controls such as Sales "rder to 0illin', Deli.er to 0illin', etc.

Stoc9 for Scrap Sale: There are $ options 8 1. Scrap material can be identified as re'ular material at the point of sale. If yes, then #e can use the same material in Sales "rder. $. Scrap material cannot be identified as re'ular material at the point of sale. (or /': * *utomoti.e seat manufacturin' company purchases different 'rades of foam, but has a sin'le scrap yard for foams. %o# at the point of sale it may not be possible to differentiate. 0ut #e re uire a material 1 stoc9 to sell scrap. :e can

create a dummy material say ;scrapfoam; 1 as concerned for stoc9, #e can 'enerate stoc9 as per re uirement throu'h T.+ode: M01*, usin' mo.ement type <=$. Material type for Scrap: @ou sell the scrap 1 it 'enerates re.enue for the or'ani,ation. So you can use (/&T for creatin' the scrap material. 0ut you can create a ne# one also but the assi'nment #ill ha.e to be done accordin'ly for (I8MM inte'ration for respecti.e G-4 accounts.

%o M&6 is re uired for this. The scrap 9eeps on 'eneratin' 1 you can store it in a separate stora'e location in the plant. *s 1 #hen it is decided to sell the scrap, create a sales order 1 complete the cycle.

6ricin': The normal pricin' procedure #hich you use to sell the finished products can be used for sellin' scrap. "nly thin' e7tra in scrap sales is an additional condition type for DT+S >ta7 calculated at source?. %ormally the rate for this condition type #ill be D1.1))ED. @ou can create a condition type say DFT+SD for scrap sale #ith condition class: D*D calculation type: D*D condition cate'ory: DDD *ssi'n a suitable access se uence to the condition type 1 maintain the condition record usin' GB11. :hene.er you creat a sales order the e7tra condition type #ill be determined 1 rest cycle #ill be the same. In the pricin' procedure assi'n an account 9ey say T+S >first create a ne# account 9ey?. @ou ha.e to assi'n account 9ey T+S because the postin' of the ta7 FT+S may ha.e to be done in a separate G-4 account. @ou can maintain the G-4 account assi'nment for T+S account 9ey in transaction code GB"*.

/7cise in.oice #ill also be 'enerated if the scrap material is e7cisable. (or this you ha.e to maintain the rele.ant chapter ID for the scrap material in M1ID.

Hope this 'i.es 'i.es you some idea about scrap sale.

Sale of any scrap material is called scrap sale.

Suppose a ra# material is purchased in plastic drums and after the contents i.e. ra# material is consumed the plastic drums are scrap material #hich #ill be sold.

Scrap can be both trade and non trade. * company implementin' S*6 #ill not trade in these 9ind of 'oods. There #ill be small time traders #ho deal #ith scrap materials.

It can be both stoc9 item or non stoc9 item dependin' on the business process. The e7amples of drums can be stac9able items. *nother e7ample is that of used cartons #hich can be non stoc9 item.

If sale is happenin' in India, then there #ill a ta7 component called T+S #hich #ill be additional to the re'ular ta7 components. Sale of any scrap material is called scrap sale.

* material that cannot be reused for manufacturin' process can be called as Scrap material and sellin' these material is called scrap sales.

In S*6, #e ha.e to capture as follo#s:8 u$=$$ u$=$$ u$=$$ Material type should be (/&T #ith no M&6 .ie#s but to maintain *ccountin' and +ostin' .ie#s. Separate pricin' procedure for scrap sales #ith a condition type for Ta7 +ollected at Source >T+S? Separate stora'e location should be created for scrap yard

u$=$$ *s and #hen scrap is 'enerated, create a sale order based on the a.ailable stoc9, do deli.ery and in.oice.

Hope this helps you