Handling Scrap Material

Hi Experts,
Required your interference here, How to handle scrap material ? Does Any material type use specifally for scrap material ?
Weather Qty and Value updation is allowed for scrap material ?
For any existing material can we transfer Trading material to scrap material by using Mvt type 309 ? What effects it will happen on Trading material type ?
Please suggest briefly.
Best Regards
Javeed Ahamed

Hi,
Required your interference here, How to handle scrap material ? Does Any material type use specifally for scrap material ?
Weather Qty and Value updation is allowed for scrap material ?
Solution: If you want you can create new material type for scrap, for quty & value updation it is upto your business requirement if you want to inventory management that scrap then tick that quantity update, if you want to valuate the scrap material then tick value updating.
For any existing material can we transfer Trading material to scrap material by using Mvt type 309 ? What effects it will happen on Trading material type ?
Solution: You can transfer but the valuation of the material of the you have to take care, like trading material price will be difference & scrap material will be different that different amount you have to post to other account which be considered for balancing the account.
Regards
Ravi Shankar.

Similar Messages

How to handle scrap occured during processing

Hi all,
I am facing problem with handling the scrap occured during processing. The case here is i want to scrap the material eg ABC, and want to sell the same material with different material no., unit of measurement.
The present process is as below,
The scrap occured during process is been collected & is scraped using Tcode MB1A, with movement type 551 or is added in the scrap feild during confirmation CO15. As per my knowledge this scrap is accounted against the costcenter and then it is out of the system. Now in order to sell the scrap the same scrap with new material no.is loaded back in the system using movement type 501. The same is been sold.
Requirement is that i want the link between the scrap & the scrap been sold.
Want to avoid movement 551 & 501, which is in practice rt now.
The same process is followed from past 5 months. So we cant go with the option of Byproduct / phantom assembly as we need to change all master data.
Can some one suggest me how to go about it, its urgent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Regards,
Arun

we will take a simple scenario - decide if this helps you
1. Input RM1 and RM2 (both rawmaterials to produce a finished goods(fg))
FG1
2. Now one scrap is produced -wecan call it as SC1
3. your bom shoudl have positive entries for the RM1 ,RM2 -which will be consumed during the production confirmation
4. the SC1 the scrap material needs to have a negateive qty in the BOM which will be getting produced with 531 movement type
5. so this scrap will be avilable in scrap and the same can be sold and processed futher
this is one of the best practiices if
a. know what qty of scrap willbe produced
b. if we have diffeent material number for scrap ..
In another case if u need to sell the same material then keep the same material with the negative qty in the bom so the same material will be produced with 531 mvt type.
Thansk and regards..

Excise posting of scrap material in subcontracting process

Hi expert,
Suppose we have send 10.000 mt of semi finished material having material code xxxx for job work to AAA Vendor and will receive back 9.500 mt of material having material code yyyy with the invoice of job work charges. The difference of qty (10.000-9.5000=0.500) in material is due to the wastage in the form of scrap. Now we have to deposit the excise duty on scrap (wastage) to the excise department because the vendor is selling this scrap to another customer, where as we have not charged any excise duty while sending material for job work. For depositing excise duty to the dept we have to issue invoice for the same qty to the vendor whereas scrap is already with the vendor. Also we have to book the vendor invoice for job work charges on the material received.
Regards,
Santosh

hi,
there are some ways to solve this issue
if u know the scrap qty before sending the material to vendor, put -ve qty in BOM in the name of scrap material number, whenever u receive the parent material scrap also get into account of our inventory as well as excise books in terms of value. further you need to do 542 for scrap material alone for qty updation in excise and inventory.then we can raise the sale invoice against that vendor and sale the scrap with TCS (Tax collecting from source)
try this iam sure it will work
Regards
Sridharan

Handle multiple material numbers as import parameter in a function module

Hello Folks,
I want to handle multiple material numbers as import parameters.. I have tried using table types but having problem while reading the data....
My requirement is user will input say 10 materials , now i need to get all the information for that particular material ..
I am unable to use for all entries as it is saying that it is not internal table... I have found table types which is having sigon , option, low and high fields but user doesn't want it... He wants to enter only materials... Currently am using this MD_T_MATNR(table type)
I am stuck up here..
Appreciate any kind of help.
Regards,
Raj

Hi,
it looks like you are on a good way, just something little is missing. Type MD_T_MATNR is suitable for your issue. I have tried it and probably your problem is that You have to use
SELECT ... FOR ALL ENTRIES IN it_matnr WHERE mara~matnr EQ it_matnr~table_line.
instead of
SELECT ... FOR ALL ENTRIES IN it_matnr WHERE mara~matnr EQ it_matnr~matnr.
In this example I suppose that a name of your variable of type MD_T_MATNR is it_matnr. Problem is that table line is not structure, but data element, therefore You have to use ~table_line instead of ~matnr.
Hope it helps.
Adrian

How does Roll up of cost of scrapped material to the product happens

Dear Friends,
We are using ECC6.00 (EHP4) with CO module also implemented. in QM module we use notification type Q3 to scrap material which is rejected in the production order. Using transaction CO11N, we book scrap in the order and using the function module in the notification we carry out reverse order qty and scrap which is nothing but 262 and 551 combined.
To be more specific if i create a notification for material M1 then when i use the function module (action box) system will reverse the material (262) from the production order and the scrap using 551 movement.
The variance is booked in the order. Now that for some of the materials users have done 551 alone without reversing the material from the production order. According to the 262 and 551, the same is configured so that the value of scrap occuring in the production order should inflate the product cost during the costing run (roll up of the cost)
Now user wants to be explained on the differences in the cost between both the type of scrapping done (262&551)and 551 alone. i.e., for periods where 262 and 551, the material cost should have been increased and for the other 551 posting there should not be any effect of the material cost.
Kindly tell me how this can be explained. Also provide the complete steps for carrying out the costing run to do actual costing and standard costing run.
Experts help will be very useful.
Regards,
M.M

[http://help.sap.com/saphelp_erp60_sp/helpdata/en/5f/1faba54aee11d189740000e8322d00/frameset.htm]

Receiving of Scrap material in Sub contracting Scnerio

Hello Experts,
Scenario is; Subcontracting: Issuing of materials to the Vendor for making finished goods.
Problem: There is some scrap generated with the vendor. Now i want to receive back the scrap material.
Kindly help to run this scenario.
Thanks & regards
Varun

Hi Varun,
Pl. check the following.
1] You will maintain scrap code in BOM with Negative quantity.
2] After receiving FG from SC vendor, migo will be done and scrap will be generated wrt BOM. This Scrap stock will be lying at SC vendor end.
3] SC vendor will return this scrap.
4] You will receive this scrap by using MoT 542 wrt to 57F4 document so that it will help in the reconciliation also.
Hope this will help you.
Regards,
Amol

Waste Transaction or Scrapping Material.

Hi! Gurus
In NZ and Australia Balance Sheet stock at the end of a period should reflect P&L Closing Stock for the same period. Opening stock for a new year is a reflection of balance sheet stock at the end of the last period, so too should it always be a reflection of P&L Closing stock of the outgoing year. There are not two stocks of inventory, just the one u2013 reported on both BS & P&L, hence the balances there-in should be a mirror image of each other.
Current Process:
At the time goods receipts the accounting are as follows:
Dr. Stock Account (Balance Sheet)
Cr. GR/IR Account
Dr. Purcashe Account (P&L)
Cr Purchase offsetting Account P&L
When we scrap material, the accounting as below
Dr Waste Expneses (P&L)
Cr Stock Account (Balance Sheet)
The requirement:
In order to reconcile with Stock Account we need to include Purchase Account during waste transaction.
The expected accounting is as follows:
Dr Waste Expneses (P&L)
Cr Stock Account (Balance Sheet)
Dr Inventory Difference (P&L)
Cr Purchase Account (P&L)
Could you please let me know if there is any setting at OBYC in order to include purchase account during wast transaction.
Best Regards
Surya

Hi Surya,
If you check the value string of movement type 551(GI scrapping), it's set as WA01.
And from control table T156W for WA01, you can see that
no EIN(Purchase account)/EKG(Purchase offsetting account) there, thus you can not
post EIN/EKG with movement type 551.
Comparing 101 posting with value string WE01, you can see in T156W, there are
EIN/EKG entries, thus they are possible during GR posting if customizing has set it
as required.
Hope it helps.
Thanks and regards,
Polly

Recycle of scrap material

Dear all,
I am having 4 material(they are actually same material having diffrent Gross weight say 200gm,400gm 600gm and 800gm).
This materials are maintained in basic unit of measure (ea).now when the customer return this material it becomes scrap,
I want this scrap material to be send for subcontracting to the vendor and to be reused to create another material.
Now the problem is that i want to send this material in kg to the vendor plus with zero value.
how to perform this activity in sap.
Regards,
SAGAR NEMNAI

Hi,
You need to do a production cycle.
Create a production order for scrap material and attach material (returned from customer ) as BOM component.
Issue returned material to production order and do GR of scrap material in KG.
Regards,
Vishal

How to handle scrap assemblies in WIP

Hi,
I have scrapped two assemblies and I have given scrap account for the assemblies in Move transactions ,These scrapped assembles needs physical space say non nettable sub inventory for storage and also for further disposal but
I could not able to assign Sub inv for scrap Assemblies.
Pl advice
Thanks
Kiran

Hi,
When you are scrapping the assemblies in move transactions, it implies that you are actually scrapping the raw material used for building the assembly.
You have to Physically move the material (Item/Lot) from the operation floor (where ever your scrapped material is present) to the Non-Nettable sub inventory.
System wise you don't have to do a transaction as the inventory and scrap accounts are already hit by the move and material issue transaction.
Hope this helps.
Thanks
Karthik.

Scrap material

I am using material type for daily transaction
ROh, HAlb, FErt,
i have created zscap material type for scrap transaction at all stages.
after routing on the roh say out of 10 matrials , 2 mat. are scrap.
so now my client wants this halb material should be convert in to zscrap material type & after that it will further proceed for sale .
How to map this scenario in SAP.
please help.

Hi yuvaraj,
If i understood correct, ur requirment is u have X(Halb) material which u r producing. U have order of say 10 Qty and out of which 8 is Ok and 2 is scrap so u want this scrap material to be of ur material type Zscrap for further selling.
(Correct me if i m wrong)
for this simple solution is,
you confirm ur all 10 qty of material X after getting it to Stock transfer 2 Qty with movement type 301 to ur scrap material of mat type Zscrap.
Regards,
Vinayak

OMB6- scrap material with 551 mvt type

dear experts
even though I put the cost center as optional for the movement type 551, in OMB6 and also on the program RM07CUFA.
When I do a MIGo and use 551 movement tyype the system is asking for a cost center as a mandatory entry, even though I put Gl acct in the acct assignment on MIGO.
Please let me know, how can I just scrap material without inputting cost center or a profit center.
Thank you
MSJ

You probably cannot, if you use profit center and cost center accounting, you may want to ask your FICO collegues for confirmation.
But in OKB9 you can setup a default cost center for this process.

Material Return/Scrap Material from production generate inspection lot

Hi experts,
I would like to confirg the following:
When material return or scrapped material return from production(mvnt type 262), system is required to generate inspection lot.
How can I config this scenario?
Thanks!
Regards,
Daniel

The inspection lot origin '05' is assigned to movement type '262'.
(You can check this in update control at transaction OMJJ.)
So you have to activate the inspection type '05' or new one.
But you should be 'careful' because an inspection lot will be create even if other movement like '501'.
Regards
Luke

Scrap material inventory

Hello,
I am scrapping material from QA32 screen using 553 mvt type. I can get this quantity through MB51 T code and selecting 553 mvt type.
Now I want to sell all this scarp material under a scrap material code, so how can I bring this mateial back to inventory. (all scrapped materials are cast iron components with seperate material codes- I will be selling cast iron (scrap mat code) @ the end of the month.
Plz advice me how to proceed for bringing this in inventory.
Jason

Dear Jaison,
u can follow this process for ur scenario, from QA32 do lot posting whatever u want to post it to scrap in the blocked stock for the same SLoc. So from here do Material to material transfer posting in MB1B with 309 mov type, that means from order material to scrap material. After this it will create stock of ur scrap material in the unrestricted use from here u can sell the scrap or issue the scrap wrt to sale order.
I have tested it, working fine. U test it and come back
sree

Scrap Material In BOM

Dear All,
I want add a material as scrap in the BOM....
what should be the material type used for scrap material......???
which Item category should be used in the BOM...
Please Suggest
Regards,
Pawan Shetty

Dear Pawan,
what is the scrap you are trying to add in the BOM?In case if you want the scrap % that is to be considered for the
components at the time of planning means,then you can differentiate and mention as component scrap or operation scrap in the
BOM--->item details.
If it's also one of the output material along with the header material means,then you can create a separate material code for the
one which you mean as scrap and maintain the same with item category as L and in terms of negative quantity in the BOM of
header material(main product).
Check and revert.
Regards
Mangalraj.S

Scrap material views..?

hi
For scrap material , what is the material type I have to choose and what are all the view I have maintain in master.
thanks
sap-mm

Hi,
Answer of your question no 1).
It is depend on your process.
If you include scrap material in your BOM, then at the time of production quantity of scarp which you mention in bom is minus from your production and this stock is generated different as ABF material.
If you not mention ABF - scrap material in your BOM.
And after creation of product at the time of Quality testing person of quality reject material from quality and they put material in block stock.
Answer 2) If material is in your restricted use.
Then first create ABF - Scrap material for your rejected FG material & also maintain sales view of material.
Upload stock with 501 movement type and make it status as restricted.
Then first transfer it from restricted to unrestricted.
Create Customer, Create Sales order with VA01, Create delivery and Billing for sales material.
Regards,
Mahesh Wagh

Handling Scrap Material

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