Scrap sales

Can any buddy let me know how do we configure Scrap sales in SD and what is the goods movement type for quality to scrap?
Mail id : [email protected]

Hi,
Scrap can be of following types:
1. Scrap generated from manufacturing.
2. stationary scrap
3. Items rejected while manufacturing which are beyond any repair.
4. Used coolant oil, coton waste, packing material which is not worth using.
etc.
How can scrap come from quality department directly. Any finished goods item rejected in qualtity and which is beyond repair is sent to the scrap yard as scrap. Also in the factory scrap is generated at various work centres.
Any hazardous waste before being disposed off is checked for the toxicity but this is different from quality. If the raw material is costly or of higher grade, the quality of the scrap being generated can fetch you more money.
Configuration:
Scrap also generates revenue for the company. So we sell it and for selling you need to have a finished product, In MM01 create material for scrap, use material type as "FERT" - in MRP screen use MRP type as "ND-No Planning". There will be some costing factors related with scrap also. Save the material.
Pricing:
As per rule the only difference in scrap sales is a new condition type called as "TCS - tax collected at source". I think the rate for this tax is "1.133" or may be it differs also. You will have to add this condition type in the pricing procedure for scrap sales. In VK11 you have to mantain the condition records for this material also.
Reward points if solution helps.
Regards,
Allabaqsh G. Patil

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Hi,
As scrap sales are revenue to the company, undernoted things to be noted here :
1. The cost element category is V - Sales and the control indicator actual revenues box to be unticked.
     The posting will be statistical for revenue elements.
2. The revenue recognition has to be equally done in VKOA for the account assignment of this account.
3. You can create a seperate order type for scrap sales and a sales pricing procedure in SD.
4. Check whether the scraps are defined to capture Tax Collected at Source, if so, you have to define
     condition types for them too.
5. If the material itself is defined as scrap material then in Material master the Profit Center would have
     been assigned and to capture the revenue assign the scrap sales revenue in VKOA.
Best Regards,
Sadashivan

Section Code for Scrap Sales -

Dear Friends,
We are handling the TCS calculation on scrap sales through withholding tax codes. Entries are flowing perfectly to finance. But section code is not captured in the billing document. How we will get the section code in sale order or billing document.
While generating tax remittance challan through J1INCHLC am getting this error:
No unpaid tax lines exist for the given selection criteria.
Message no. 8I702
Diagnosis
The corresponding withholding tax line &1& is not present in WITH_ITEM table.
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For withholding tax recovered from the vendor, tax line is present in table BSIS, but the corresponding entry is missing in table WITH_ITEM , which is necessary for challan updation. Check the entries.
Procedure
check entries in table WITH_ITEM for the open tax items chosen for clearing.
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Isaac

Hi Issac,
I am facing the same problem that of yours.
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Siva

Tax Collected at source for Scrap sales in India

Hi Experts,
We are implementing the scrap sales process to our client. So we need to configure the "tax collected at source" process. We have configured the following steps as per the OSS Note specified for TCS:
1. Define Withholding Tax key (206C)
2. Define Withholding Tax type
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4. Create condition types corresponding to Tax collected at Source in SD
5. Assign withholding tax types to SD condition types
6. Define withholding tax codes
7. Assign GL accounts for withholding tax types
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9. creating non statistical new condition types and added them to the SD pricing procedure.
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11. assign the G/L accounts for the new account keys in VKOA.
after this when we try to post the invoice we get the error as "posting keys are missing for the transaction ZTC" (ZTC is our account key).
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Thanks & regards
Nag

Dear Experts,
THanks for your feedback.
Just for your information we are using the calculation procedure ZTAXIN (Copy of TAXINN). In this scenario, for example we are using the Tax code as "A0". This tax code is already assigned in the VK11 against TCS COndition type JTCS as per OSS Note.
But after that also we are facing this issue. Due to this the Accounting entry in SD also not getting posted nor in Withholding tax related GL accounts also.
ALso please suggest us how to get the TCS Certificate
Warm REgards,
Nag

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Accumulated Depreciation A/C Dr
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Arvind

Thanks Srini,
I have proposed the soln to the client. We need to just assign the corresponding the G/L accnt with the downpaymenty clearing accnt in the acquistion account assignment in AO90.
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Search the forum. Please dont post these questions. Already answered many times.
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Good Morning !
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Hi, scrap sales

hi,
sap gurus,
good mrng,
i just wanted to the item category group for SCRAP SALES and its relevant
ITEM CATEGORY for it.
regards,
balaji.t
09990019711

Hi,
SALE OF SCRAP
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regards
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Scrap sales without QTY updation

Dear Gurus,
We have a scenario were we would like to sell the scrap material ( old iron pcs, packaging material etcu2026) through sales process. Kindly advise the best scenario for the same. The excise duty and sales tax would be applicable ( ED10.3%, S.Tax 4% + surcharge 5%). This scenario would be without material movement and the quantity would be only for value calculation purpose.
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No dont go for differentiating the material type. For scrap sales, material type should always be FERT. So, you go with differentiating item category. In VOV4, for scrap sale order type, maintain default item category as TAX and manual as TAN.
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Scrap Sale

I am trying to post the scrap sale by ABAVN.One error is coming that "Acquisition value negative in area 01"
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The asset which you are trying to sale doesn't having any value that is why you are getting this error.
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Biju

Scrap Sales-VAT Condition Type Not Copying into Billing Document.

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Prasanna,
It is fine to press Release to Accounting button, but the issue has not yet been identified to fix and then Release to Accounting.
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What is scralp sales processflow in SAP
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SAPUSER5

Dear,
Cost Accounting Procedure for Scrap and Waste:
In many manufacturing processes, waste and scrap result from:
The processing of materials.
Defective and broken parts.
Absolute stock.
Revisions or abandonment of experimental projects.
Worn out or absolute machinery.
This scrap should be collected and placed in storage for sale to scrap dealers. At the time of sale, the following entry may be made:
Cash (or accounts receivable) xxxx Dr.
       Scrape sales (or factory overhead control) xxxx Cr.
The amount realized from the sale of scrap and waste can be treated in two ways with respect to the income statement:
The amount accumulated in scrap sales may be closed directly to income summary and shown on the income statement under other income.
The amount may be credited to factory overhead control, thus reducing the total factory overhead expense and thereby the cost of goods manufactured.
When scrap is collected from a job or department, the amount realized form the sale of scrap is often treated as a reduction in the materials cost charged to the individual job or product. In this case, the entry to record the sale would be:
Cash (or accounts receivable) xxxx Dr.
                                          Work in process    xxxx Cr.
When the quantity and value of scrap materials is relatively high, it should be stored in designated place under the supervision of a storekeeper. A scrap report ( as shown below) is generally prepared in duplicate to authorize transfer and receipt of the scrap.
The original is forwarded to the materials ledger clerk, and a copy remains on file in the department in which the scrape originated. The material ledger clerk can follow tow procedures:
Open a materials ledger card, filling in the quantity only. When the scrap is sold, the entries and treatment of the income item might be handled as discussed previously.
Record not only the quantity but also the value of the scrap delivered to the storekeeper. The value would be based on scrap prices quoted on the market on the time of entry. The entry would be:
Scrap Materials xxxx Dr.
       Scrape Sales (or work in process or overhead control)   xxxx Cr.
When the scrap is sold the entry would be:
Cash (or accounts receivable) xxxx Dr.
       Scrap Materials   xxxx Cr.
Any difference between the price at the time the inventory is recorded and the price realized at the time of sale would be a plus or minus adjustment in the scrap sales account, the work in process account, or the factory over head control account, consistent with the account credited in the first entry.
To reduce accounting for scrap a minimum, often no entry is made until the scrap is actually sold. At that time, cash or accounts receivable is debited while scrap sales is credited. This method is expedient and is justified when a more accurate accounting becomes expensive and burdensome, the scrap value is relatively small, or the price is uncertain.
Proceeds from the sale of scrap in reality a reduction in production cost. As long as the amounts are relatively small, the accounting treatment is not a major consideration. What is important is a effective scrap control system based on periodic reporting to responsible supervisory personnel. Timely scrap reports for each producing department call attention to unexpected items and unusual amounts and should induce prompt corrective actions.
regards

MCSI report for actual/normal sales and scrap scales

Hi all,
How do i can configure sales value and net value of the Scrap sales should be Zero in MCSI report(SIS)? because its not a actual/normal sales so it should not appear in the MCSI report or it should show Zero values and For Actual/normal sales MCSI report should show exact values as per the transation captured by the system.
Please explain me in terms of Tables and fields and Configuration settings need to be changed in Pricing Procedure.
Thanks and Regards
Swamy HP

I resolved it. Thanks for your valuable inputs.

TDS for Sale of Scrap (India)

Hi
Can anyone tell me how to configure TDS for Sale of scrap for Indian companies .. Please urgently required

Hai Sonal
Actually For Scrap Sales TDS will not be there There will be TCS
You have to coordinate with your SD Consultant he will write a separate pricing proceedure.the pricing structure will be as follows
Price :-                         100                 ERL (VKOA)
ED:-                               16
Cess:-                             2
SEcess                           1
Vat 4%                          4.76
Total                             123.76
[email protected]% on 123.76 1.274          Here i have given 1.03 if you want seperate breakup 3 different
                                                      Condition types has be defined.
Total                              125.04
No configuration will be needed.for that condition types mentioned in the pricing proceedure Just define the account types and assign the accounts in vkoa.
Revert back if any quieries....
Regards
Raghavendra.M
SAP-Practice
+919972019740

How to advice for sale of scrap generated in the store.

Dear All,
Our client is automobile parts manufacturer.Here the scrap are of three types.
1)Scrap generated through production
2)Packing material comes with raw material
And third one is the scrap generated while manufacturing the trollis to carry the goods in the plants.
How can we capture this.Please guide.
Regards,
deepti

Dear deepti
1) We call it as Line rejection. Since you said that it is an Automobile industry, to my knowledge, two types of base material will be used. Cast Iron and Aluminium. This is only an example. The base material may not be the same what I have indicated. To apply this logic, I have taken these base materials.
First you create a storage location for scrap and then create material in MM01 as Casting Scrap and Aluminium scrap with UoM in Kgs. Whenever rejection happens in production, through MB1B / 311 movement, your production people will have to assign the above storage location so that you will have scrap stock in system. What you have to do from SD point of view is that, you create a sale order for the scrap, create delivery and bill. The unit rate for scrap should be decided by the manufacturer.
2) Packing material is a generic term; it may be wooden pallets, cartons etc.. So if it is pallets, you have to create material as Wooden scrap and similarly carton scrap. Do MB1B as explained above.
The above logic applies to all. Last but not least, if you follow standard movement types like 551, 555 etc., you cannot track the stock of material. So if you want to capture scrap sales, consider 311 movement type. The best judge would be your MM guy. Check with them also.
thanks
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Scrap sales

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