Scrap selling

[Former Member]

Hi All,

We need to map the scrap process but the requirement is as follows:

1. There is a "in process" scrap generated at production shop floor but we cant define any specific % as scrap in material master / BOM.

2. From Production floor, scrap is dumped to the scrap area and sold directly therefrom.

3. There is no requirement of taking scrap into stock.

4. Client wants to pass the entries in FI as well as generate excise invoice from excise manufacturing plant.

Can we map this scenario in SAP?

Kindly suggest.

Regards

Anuj

[Former Member]

Hi,

As I understand the scrap is a biproduct of the manufacturing process which is sold directly from the scrapyard,

for this we can proceed the following way

1) Have anew material no for the scrap

2) If you are not going to take the same in stock for the valuation & delivery then it would be outside SAP,

3) If you need to map the same in SAP you will have to show it in the stock you can keep the value of the same as zero

4) This will also help to calculate the profits if it is desired in future

Hope this helps

Thanks

Prashant

[Former Member]

Dear Prashant,

In our case, Point No.2 is applicable.

We are passing scrap sale entries manually through FB70.But our problem is in case of scrap sale through manufacturing plant ,how are we going to take excise invoice from the system.

Regards

Anuj

[Former Member]

Hi Anuj,

In case you are not taking scrap in your stock valuation., then create a non valuated stock which will not have any value but only quantity.

In that case, scrap from scrap yard will be taken in SAP via 561 mov type and then sold from SD route where, excise invoice will also get created.

In cases where excise is configure din SAP, dont route it thru FB70 as excise is going to be an issue there.

Regards,

SAPFICO