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Former Member

scrap sale

hi all,

appreciate if can reply by point.

1) may i know what is scrap sale?

2) what kind of stock can be considered as scrap sale?

3) scrap sale is considered as trade or none trade?

4) scrap sale is on stock item or non stock item?


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2 Answers

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    Former Member
    Oct 01, 2008 at 01:35 AM

    Sale of any scrap material is called scrap sale.

    Suppose a raw material is purchased in plastic drums and after the conents 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 stockable 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.



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  • Oct 01, 2008 at 03:45 AM

    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:-

    - Material type should be FERT with no MRP views but to maintain Accounting and Costing views.

    - Seperate pricing procedure for scrap sales with a condition type for Tax Collected at Source (TCS)

    - Seperate storage location should be created for scrap yard

    - As and when scrap is generated, create a sale order based on the available stock, do delivery and invoice.


    G. Lakshmipathi

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