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Logistic management of scrap

Former Member
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Hey everybody,

I need your help, somebody can explain the process flow for the logistic management of scrap (selection of an item , edittion of a scrap certification and edition of a destruction certification) and finally how to validate this scrap??

thaonks for your help

Cédric

Edited by: Cédric Mudimisi on Jul 1, 2008 8:01 PM

Accepted Solutions (0)

Answers (2)

Answers (2)

BijayKumarBarik
Active Contributor
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Hi,

Process to handle Scrapping:

Create Scrap Materials using Material type ABF or a copy of ABF.

If the UOM of Byproducts & Scrap are the same then do a material to material transfer using 309 movements.

Create a sales order, Perform the Delivery & Customer Invoicing.

If the UOM is different then do a goods issue to scrap of By-Product using 551.Perform a 501 movement for scrap material & then perform the Sales order, Delivery & customer Invoicing Process.

If you want to sell scrap material, you can transfer your material type from your material type to material type "waste" or create material with material type waste.

Then the flow of scrap sales:

1)Create a scrap sales order (VA01)

2) Scrap delivery (VL01N)

3) PGI (VL02n)

4) Performa invoice (F8) or sales Invoice (F2) (VF01)

and

5) if excise is applicable for the scrap, then excise invoice

(J1iin) after sales invoice.

Regards,

Biju K

Former Member
0 Kudos

Hi

The material that is in stores which is damaged, out of date & of poor quality due to long storage time will be analysed for future usage.

The materials to be scrapped will be divided as

oMetals

oNon-Metals

Metals will comprise of

oFerrous

oAluminium

oCopper

Non-Metals will comprise of

oPlastic

oWood

oPaper

oMiscellaneous

The Scrapping team will valuate the scrap materials in SAP as per the Market price of saleable scrap

The Scrap materials will have a Standard Price Control, & the price is maintained using MR21 Transaction

Stock Materials which are decided to be scrapped will be issued for Scrapping (Using MVT 551) & receipt of Scrap materials (Using Mvt 501) will be carried out.

The issue & receipt of material need to be performed back to back. This is to avoid any delinquency in scrap handling.

You can scrap materials from the stock types below:

oUnrestricted-use stock

oQuality inspection stock

oBlocked stock

A scrapping has the following results in the system:

othe relevant stock is reduced

othe value of the scrapped material is posted from the stock account to a scrap account the costs of the scrapped material are assigned to the cost center specified

The issue of scrap will be carried out with a goods movement in SAP (movement Type -551).

oCredit - Stock A/C

oDebit - Scrap Consumption A/C

oDebit - Price Difference A/C

Note: The difference between the Valuation of Stock material & scrap material will be posted to a Price difference account as per the accounting standards.

Enter the goods receipt of scrap material as a miscellaneous (other) goods receipt.

The receipt of scrap will be carried out with a goods movement in SAP (movement Type -501).

oDebit - Scrap Stock A/C

oCredit - Offsetting Scrap Stock A/C

For saleability of scrap materials invite tenders, Tendering process need to be addressed out of SAP system.

SAP SRM application will be able to integrate the process on implementation.

The sales process of scrap will be initiated by finalising the customers based on the tendering process & creation of sales order in SAP

Sales order will be created manually by inserting scrap material along with prices.

the scrap material will be handed over to the Customer using a Delivery note generated in the system with reference to the Sales Order

The delivery creation will have following results in the system

othe Scrap stock is reduced

othe value of the scrapped material is posted from the stock account to a COGS (Scrap sale) account

othe costs of the scrapped material are assigned to the cost object specified

Invoice the Customer with reference to the Delivery note .Billing document will update customer account receivable and revenue account.

Thanks & Regards

Kishore