Selling the cotton waste / plastics waste material from the factory.

[Former Member]

We have a waste material laying in the factory like cotton waste/Plastic materials.

Thing is that cotton waste is procured as consumable material thru po-- GI is also done for it (hence not in stock )  & now after its use,it become waste.

I want to sale this as a scrap to vendor.

For selling it thru SD-module -Sales order, it required to be in stock as needed by SD module requirement.

Can you please guide me ,how to take it into account as stock so that it will fulfill the requirement of SD module as its already being issued against cost center (201 mvt type)

Please guide.

[Lakshmipathi]

From SAP point of view, multiple ways are there to achieve this requirement.  But you need to ask your client's finance team as to how they want to account such sales.  Involve your FI consultant also.  Based on this update here, if you want any further inputs.

G. Lakshmipathi

[Former Member]

Dear Laxmipathi,

1.Cotton waste material is received via 101 wrt PO & Issued to cost center via 201 & consumed.

2. Now as its waste we need to sell. This is simple requirement. FI point of waste sale is revenue. but we stuck at place that how will I create the sales order for selling it when the stock is not in inventory. As a consultant, I don't think the suggestion of asking the Client to perform the reversal thru 202 when the material is actually consumed for the intended use & its illogical should then.

There should have some logical way to map scrap, once the material is become waste after its use & not  the 202 reversal of GI (which is like material is not/never used & now your scrapping it via sales order!!!).

If we use 202 reversal then what will the impact on the reports -showing all these times GI is reversed!!! which is clearly misreading from the report analysis.

[asimsharmacs]

You can create customized material type by copying UNBW  and  create material code with customized material type for cotton  and then receive material through 501 movement type , you will get stock for the same.

[andrea_brusarestelletti]

Hello,

I totally agree with Jurgen's answer. You don't need to have stock to be able to sell something if,  like in your situation, it can be regarded at as a service. If your requirement is to be able to print a delivery note,  you can define an item category with the flag "Item is relevant for delivery" (TVAP-LFREL) in customizing.

If you absolutely need to manage it as stock,  you need to come to a compromise with PP  people,  and since Sales rules , they will need to change their approach and treat that material as a sub-product, instead of an activity.

Best regards,

Andrea

[Lakshmipathi]

If this requirement is for Indian client, then it can be addressed in two ways:-

• If the cotton waste is a duty paid material, then even at the time of selling the used cotton waste, based on the selling price, you need to levy duty.  Having said this, you need to maintain inventory from Excise point of view

• On the other hand, if the cotton waste is non-excisable, then you can go ahead with the suggestions already suggested here.

G. Lakshmipathi

[Former Member]

Hi Atul,

We do scrap sales by first bringing the stock in , using movement type 202 against cost center.. we have created seperate material codes and storage location for scrap items , and then create normal sales order and invoice.

[JL23]

I actually think that this sentence is just wrong

"For selling it thru SD-module -Sales order, it required to be in stock as needed by SD module requirement."

to my experience it is well possible to sell non-stock material, like you can sell service. (Or do you store service hours in a warehouse?)

So there is not necessarily a need to create stock, all depends on the customizing of your item categories

[Former Member]

Dear Jurgen,

I understand for service Sales we don't need to maintain stock as services can have order related billing.

but to sale a material, we need to do PGI in delivery document,now here stock is required to perform this step & my problem is that I don't have the stock of the material which was already issued to Cost center (201).

[former_member187652]

Hi Atul,

I opt to Jurgen's idea. we can make a non-stock item in the sales order relevant for delivery. it is all controlled at the item category level. in vov7 there is a checkbox as item relevant for dlv. that's how you can carry your waste to delivery.

The way you've described it makes me think that maintaining stock isn't important to your client. If that is the case, you can manipulate the sales item category, delivery item category to achieve whatever requirement you may have surrounding this issue. I'm pretty sure you can get what you want.

As a matter of fact, whether delivery is needed is also another question that you need to think about. I would say it is probably easier for us to help if you can describe the complete flow and requirement.

[Former Member]

Dear Jurgen/Dev

Just to offer more insight, Can we use 521 to take the stock of scrap inventory for the material which is already issued & consumed.

Many recommending 501, But can 521 -GR w/o Production Order.can we can use this also?

[former_member183424]

You can use 521 or 501. But you have to check the accounting entry with your FI consultant.

As it has the off-settings entry, so it can create some problem in your FI module.

Check the accounting entry for this movement type and consult with your FI team with this accounting entry. If they confirm you that this is correct, then you can continue.

Still I suggest use 202 movement type as you have done the movement type 201 previously and it will hit the same G/L account whatever it had hit previously.

[former_member183424]

Why you want to sale the material else you have also done Issue to cost center (201 movement type) for the material.

Issue to cost center means the stock has been already gone from your warehouse stock and the corresponds accounting entry was happened.

No need to do sale the material as it was already issued to cost center.

Still if you want to sale the material then you have to get back the material from cost center to your warehouse, only then you can sale the material.

[Former Member]

Dear DEV,

If there is stationary like paper was issued to cost center & now it is used for writing & it become unused waste paper. so being it now obsolete or scrap we need to sale it. so here how i can bring it back to the stock????

need to map this?

[former_member183424]

Still I am not getting your point.

Previously, your material was issued to cost center by using movement type 201.

But now you want to sale these materials.

You can use 202 movement type for those materials.

[andrea_brusarestelletti]

Hello,

the easiest procedure to follow should be that periodically (i.e. when that material should be sold as waste), the user post movement 531 - Receipt of by-product into unnrestricted-use stock. You should evaluate if using the same material code of the cotton/waste or create a dedicated one (also in case you need to monitor the total stock available).

If you want to automate the procedure, you should talk to the PP guys to enter it as a by-product posted in stock when doing the good-receipt of the finished products.

Best regards,

Andrea

[Former Member]

Dear Andrea,

to tell you the exact problem is that we are having power plant were Power is generated which is used by plant itself but surplus power geneareted is need to sale to the outside vendor,but this power is defined "activity" in PP hence now i dont get it in stock & For selling it thru SD, it requires to be in stock which is not there as it is defined as activity in PP Module.

Now to take into the stock so that it can sell thru SD. I am not geeting a way bring it into the inventory.

Need help.