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scrap
raghu ram 152 posts since Mar 20, 2008
scrap Apr 2, 2008 2:21 PM
Hello Gurus

Can you please tell me about scrap sales and its cycle of order/delivery/invoice...how to create that
material...please provide steps, which would be more helpful..
Prashant Ranalkar 360 posts since May 4, 2006
Re: scrap Apr 2, 2008 2:40 PM
Scrap sales is processed the same way as normal sales process. Create a scrap sales order, say order type
Zscr. Followed by Scrap delivery, PGI for the scrap material and Proforma or F2 Invoice.
In case of excisable material, you also have to create a excise invoice through J1IS transaction.

Regards

Prashant
Dhanu Gaikwad 63 posts since Nov 23, 2007
Re: scrap Apr 2, 2008 7:22 PM
Dear Friend,

Create a mateiral (T Code MM01) with material type "Waste". Scrap sales flow is the same way as normal
sales process.

Flow of Scrap sales :-
1)Create a scrap sales order (VA01)
2) Scrap delivery (VL01N)
3) PGI (VL02n)
4) Proforma invoice (F8) or sales Invoice (F2) (VF01)
and
5) if excise is applicable for the scrap, then excise invoice
(J1iin) after sales invoice.

Tax Structure for Scrap :-a) Scrap sale without excise
Sale price + VAT [ 4%] + TCS [1.333%].

scrap
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b) Scrap sale without excise
Sale price + VAT [4%]
(Exempted from TCS ? against Form ? 27-C)

c) Scrap sale with excise
Sale price + Excise duty [16%] + Ed. Cess [2%] + SH
Cess [1%] + VAT [4%] + TCS [1.133%].

d) Scrap sale with excise
Sale price + Excise duty [16%] + Ed. Cess [2%] + SH
Cess [1%] + VAT [4%]
(Exempted from TCS ? against Form ? 27-C)

I think it will give u clear idea about Scrap material and its sales process.

Reward pionts if helpful and close d thread.


Dhananjay
Dhanu Gaikwad 63 posts since Nov 23, 2007
Re: scrap Apr 2, 2008 7:24 PM
Dear Friend,

Create a mateiral (T Code MM01) with material type "Waste". Scrap sales flow is the same way as normal
sales process.

Flow of Scrap sales :-
1)Create a scrap sales order (VA01)
2) Scrap delivery (VL01N)
3) PGI (VL02n)
4) Proforma invoice (F8) or sales Invoice (F2) (VF01)
and
5) if excise is applicable for the scrap, then excise invoice
(J1iin) after sales invoice.

Tax Structure for Scrap :-
a) Scrap sale without excise
Sale price + VAT 4% + TCS 1.333%.

b) Scrap sale without excise
Sale price + VAT 4%
scrap
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(Exempted from TCS ? against Form ? 27-C)

c) Scrap sale with excise
Sale price + Excise duty 16% + Ed. Cess 2% + SH
Cess 1% + VAT 4% + TCS 1.133%.

d) Scrap sale with excise
Sale price + Excise duty 16% + Ed. Cess 2% + SH
Cess 1% + VAT 4%
(Exempted from TCS ? against Form ? 27-C)

I think it will give u clear idea about Scrap material and its sales process.

Reward pionts if helpful and close d thread.

Dhananjay
Rajesh Banka 5,375 posts since Jul 28, 2006
Re: scrap Apr 2, 2008 7:26 PM
<b>Pricing Procedure</b>
In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre
+ Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in
Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document
Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing
procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is
determined. If Mandatory pricing condition is missing, system will through an error message.

In SD, the steps to configure Pricing procedure are as under:
Step 1:
Condition table: If existing condition table meets the requirement, we need not create a new condition table.
Considering the requirement for new condition table, the configuration will be done in spro as follows: IMG
--> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Table (select the required fields
combination, which will store condition record).
Step 2:
Access Sequence: If existing access sequence meets the requirement, we need not create a new access
sequence. Considering the requirement for new sequence, the configuration will be done in spro as follows:
IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Access Sequence (Access sequence is
made up of Accesses (Tables) & the order of priority in which it is to be accessed. Here we assign the condition
table to access sequence.
Step 3:
Condition Type: If existing condition type meets the requirement, we need not create a new condition type.
Considering the requirement for new condition type, the configuration will be done in spro as follows: IMG --
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> Sales & Distribution --> Basic Function --> Pricing Control --> Condition Type. It is always recommended to
copy an existing similar condition type & make the neccessary changes. Here we assign Access sequence
to Condition type. <u><i><b>Ensure to create a TCS i.e Tax Collected at source Condition Type, as a copy
of discount & surchage condition tpe & place it as the last Condtion in Pricing Procedure, which requires to
collected from the vendor & paid to Government (in Indian Scenario)</b></i></u>
Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make the neccesary changes
in new pricing procedure. Pricing Procedure is a set of condition type & arranged in the sequence in which
it has to perform the calculation. Considering the requirement for new Pricing Procedure, the configuration
will be done in spro as follows: IMG --> Sales & Distribution --> Basic Function --> Pricing Control --> Pricing
Procedure --> Maintain Pricing Procedure.
b. Pricing Procedure: After maintaining the pricing procedure the next step will be determination of pricing
procedure. Configuration for determining pricing procedure in SPRO is as follows: IMG --> Sales & Distribution
--> Basic Function --> Pricing Control --> Pricing Procedure --> Determine Pricing Procedure.
5. Condition record: Condition record is a master data, which is required to be maintained by Core team /
person responsible from the client. During new implementation, the condition records can be uploaded using
tools like SCAT, LSMW, etc.

<b>Scrap Sales Order Cycle</b>:-

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
Inquiry, Quotation, Sales Order, etc. To create new sales order type, always copy as with reference to similar
sales order. If possible use standard sales order.
2. Define Number Ranges For Sales Documents: Maintain number range with discussion with core team.
3. Assign Sales Area To Sales Document Types:
A. Combine sales organizations / Combine distribution channels / Combine divisions: Ensure to maintain these,
else Sales Order creation will give error.
B. Assign sales order types permitted for sales areas: Assign only required Sales Order Types to required
Sales Area. This will minimize selection of Sales Order Type as per sales area.

Sales Document Item:
1. Define Item Categories: If possible use Standard Item Category. Incase if required to create new, copy as
from standard & maintain New.
2. Assign Item Categories: If possible, use standard. Formula for deriving item category: Sales Document Type
+ Item Category Group + Usage + Higher Level Item Category = Item Category

Schedule Line:
1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new,
copy as from standard & maintain New.
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2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item
Category + MRP Type / No MRP Type.

Step 2:
IMG > Logistic Execution > Shipping > Deliveries >
1. Define Delivery Types: If possible use Standard Delivery Type. Incase if required to create new, copy as
from standard & maintain New.
2. Define Item Categories for Deliveries: If possible use Standard Item Categories for Delivery Type. Incase if
required to create new, copy as from standard & maintain New.
3. Define Number Ranges for Deliveries: Ensure to maintain number range.

Step 3:
IMG > Sales and Distribution > Billing >
1. Define Billing Types: If possible use Standard Billing Type. Incase if required to create new, copy as from
standard & maintain New.
2. Define Number Range For Billing Documents: Ensure to maintain number range.
3. Maintain Copying Control For Billing Documents: Maintain relevant copy controls such as Sales Order to
Billing, Deliver to Billing, etc.

<b>Stock for Scrap Sale</b>:
There are 2 options -
1. Scrap material can be identified as regular material at the point of sale. If yes, then we can use the same
material in Sales Order.
2. Scrap material cannot be identified as regular material at the point of sale. For Eg: A Automotive seat
manufacturing company purchases different grades of foam, but has a single scrap yard for foams. Now at
the point of sale it may not be possible to differentiate. But we require a material & stock to sell scrap. We can
create a dummy material say 'scrapfoam' & as concerned for stock, we can generate stock as per requirement
through T.Code: MB1A, using movement type 502.

Regards,
Rajesh Banka

Reward point if useful.