Scrap Sales:

Pricing Procedure:
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:

Step 1:
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).

Step 2:
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.

Step 3:
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
necessary 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 &
surcharge condition type & place it as the last Condition in Pricing Procedure, which
requires to collected from the vendor & paid to Government (in Indian Scenario).
You can create a condition type say "ZTDS" for scrap sale with
condition class: "A"

calculation type: "A"

condition category: "D"

Step 4:
a. Pricing Procedure: It is recommended to copy a similar pricing procedure & make
the necessary 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
Schedule Line:
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.
Step 2:
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.
Step 3:
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
E.g.: An 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 'scrap foam' & as concerned for stock, we can
generate stock as per requirement through TCode: MB1A, using movement type
502.