In standard Return order item category is REN and schedule line category is DN and the movement type is 651
651 means goods are blocked
SD process ends here
After this thro MM inventory management these blocked goods are moved to quality inspection and then they decide
If you use movement type 655 you can straight away move these to quality inspection
So in your schedule line category choose 655
SCRAP SALES CYCLE
First and foremost important thing is that for scrap sales, you should have created a new pricing procedure in which you have a condition type for TCS and necessary Account Key is assigned to this.
As and when scraps are generated, create a sale order according to the scrap quantity available, do PGI and invoice.
Why TCS & account KEY ?
As you would be aware in normal sales, we use to charge sales tax on buyer. Similarly, for scrap sales, you need to collect Tax Collected at Source which is another type of tax you are collecting from the buyer.
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:
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).
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.
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 --> 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. 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)
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.
Scrap Sales Order Cycle:-
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
1. Define Schedule Line Categories: If possible use Standard Schedule Lines. Incase if required to create new, copy as from standard & maintain New.
2. Assign Schedule Line Categories: If possible, use standard. Formula for deriving Schedule Line: Item Category + MRP Type / No MRP Type.
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.
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.
Stock for Scrap Sale:
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.
Material type for Scrap:
You sell the scrap & it generates revenue for the organization. So you can use FERT for creating the scrap material. But you can create a new one also but the assignment will have to be done accordingly for FI-MM integration for respective G/L accounts.
No MRP is required for this. The scrap keeps on generating & you can store it in a separate storage location in the plant. As & when it is decided to sell the scrap, create a sales order & complete the cycle.
The normal pricing procedure which you use to sell the finished products can be used for selling scrap. Only thing extra in scrap sales is an additional condition type for "TCS (tax calculated at source). Normally the rate for this condition type will be "1.133%". You can create a condition type say "ZTCS" for scrap sale with
condition class: "A"
calculation type: "A"
condition category: "D"
Assign a suitable access sequence to the condition type & maintain the condition record using VK11.
Whenever you creat a sales order the extra condition type will be determined & rest cycle will be the same.
In the pricing procedure assign an account key say TCS (first create a new account key). You have to assign account key TCS because the posting of the tax ZTCS may have to be done in a separate G/L account. You can maintain the G/L account assignment for TCS account key in transaction code VKOA.
Excise invoice will also be generated if the scrap material is excisable. For this you have to maintain the relevant chapter ID for the scrap material in J1ID.
Hope this gives gives you some idea about scrap sale.
Sale of any scrap material is called scrap sale.
Suppose a raw material is purchased in plastic drums and after the contents i.e. raw material is consumed the plastic drums are scrap material which will be sold.
Scrap can be both trade and non trade. A company implementing SAP will not trade in these kind of goods. There will be small time traders who deal with scrap materials.
It can be both stock item or non stock item depending on the business process. The examples of drums can be stackable items. Another example is that of used cartons which can be non stock item.
If sale is happening in India, then there will a tax component called TCS which will be additional to the regular tax components.
Sale of any scrap material is called scrap sale.
A material that cannot be reused for manufacturing process can be called as Scrap material and selling these material is called scrap sales.
In SAP, we have to capture as follows:-
u2022 Material type should be FERT with no MRP views but to maintain Accounting and Costing views.
u2022 Separate pricing procedure for scrap sales with a condition type for Tax Collected at Source (TCS)
u2022 Separate storage location should be created for scrap yard
u2022 As and when scrap is generated, create a sale order based on the available stock, do delivery and invoice.
Hope this helps you
The first requirement of return material, you can map a standard return order cycle where you do goods receipt and then transfer that material to scrap store location or rework location.
For this you need to take help of MM consultant. Check whether material code will remain same or it will change.
For second requirement, define a new sales order as say SCRAP SALES.
You can maintain separate pricing if required.
If it is in INDIAN scenario then you need to define different tax code to accomodate taxes like TCS, addition surcharge and CESS on TCS.
Other than this the sequence will remain same as standard sales process.