Sale of Scrap in SD Module

1. ACE-9 process has to be done in SAP where the asset to be decommissioned is identified. This is
a PM Module process.
2. ABUMN is to be done for the asset identified to be decommissioned.
3. Run T Code ABUMN

Enter the Asset Id which has

to be decommissioned

Enter the Document Date

Enter the Posting date
Enter the Asset Value Date which
is the date of decommissioning

Enter the Text filled with

narration about
decommissioning

Click on the Radio Button New Asset

4.

Enter the Description of the Decommissioned Asset which has to be created.

Preferably, mention the old Asset Id for future reference.

Enter the Asset Class of decommissioned Assets

Enter the Cost Center relevant for the decommissioned Asset

Click on Master Data Button
5.

Enter the Business Area

Enter the relevant Cost Center

Enter the Plant. Same as Business

Area

Click on this.

Click on Partial Transfer, if the asset has to be decommissioned partially. Else, skip to step 7.
6.

Enter the Gross Value of the Asset

which is being decommissioned.

Click on Prior-year acquisition

7.

Click on Simulate.
The document is simulated. The new asset id will be generated after the document is posted.

8.

Click on Save, to post the document.

9.

The FI document is
generated.

The Asset id for decommissioned asset is generated. The asset

master can be viewed using T Code AS03 and this Asset id.

10. Material Code has already been created in SAP for Decommissioned Assets, class wise, as
tabulated below:

62000236 APPARATUS & PLANTS

62000237 MOTOR VEHICLE & LAUNCHER
62000238 CABLES
62000239 LINES & WIRES
62000240 INSTL TEST EQUIPMENT
62000241 MASTS & AERIALS
62000242 OFF MACHINERY & EQUIPMENT
62000243 ELECTRICAL FITTINGS & APPL
62000244 FURNITURE & FIXTURES
62000245 COMPUTERS- END USER DEVICE
62000246 SUBSCRIBERS INSTALLATION
62000247 COMPUTERS-SERVER & NETWORK
62000248 OTHER MISC MATERIALS **
**- This material Code has to be used for Sale of Waste Paper and like miscellaneous items not forming
part of Assets.
 The Units need to use the above relevant material codes for sale of Decommissioned Assets.

11. The T Code MB21 has to be run for the creation of reservation of the material. This step has to
be done by the MM Section.
12. T Code MIGO has to used for accepting Material from Asset to Inventory.
13. After this, the SD Module process commences:
14. This activity has to be done after the sale proceeds are received by the Accounts Officer (Cash)
15. The creation of sales order (using T Code VA01) and depletion of inventory (Using T Code VL01N)
has to be done by the concerned SDE. Only the invoice generation (using T Code VF01) has to be
done by Accounts Officer (Plg).

Use T Code VA01 for creation of the Sales Order

Enter the BA Code

Press Enter
 Enter the customer code
In PO Number enter the
Asset being sold

Enter the Material Code. Quantity has to be entered

Press Enter

The description of the material is recalled by the system. Unit can change it to suit the asset being sold.
Click on Item Overview Tab

Enter the Storage Location

Click on Item Condition

The Screen changes to show the details of the sales proceeds of the material

Go to the last row. Click on the dropdown, and choose ZPR0.

Press Enter.
 Enter the Sale Proceeds of
the Asset.

The system calculates the VAT @ the rate which was mentioned at the time of creating the Material
Code .

Go to the last row. Click on the dropdown, and choose ZMSTC.

Press Enter
 Enter the commission percentage.
The value of commission is
calculated.

Click on Shipping Tab

Enter Weight
Click on Save

The Order can be displayed using the T Code VA03. Any modification is the sales Order can be done
using The T Code VA02.

16. Use T Code VL01N for Delivery of Goods

Enter the Sales Order No.

created in Step 5.

Press Enter
Post Goods Issue has to be clicked.

Choose Batch from Drop Down as

ZFGN_PURCH

We can see the status in VA03, as below: Click here

Enter the Sales Order No.

If the Post Goods Issue is not done the status will show as :

This is wrong. Ist should show as

Complete

The outbound Delivery has to show as Completed and NOT Open.

17. Invoice posting has to be done Using T Code VF01

 Enter the Outbound
Delivery No from step 6.
Press Enter

Click on Save
Use T Code VA03 to see the status

The accounting document is posted. The customer is showing open items.

The document is shown below:

 18. The commission payable report is shown in T Code ZMSTC

Enter the relevant details

Execute

Please note that the above is only a report, and no accounting document is posted by the system.

The accounting document has to entered using T Codes:

1. FB60 to post the invoice for commission by crediting the MSTC Vendor.
2. F-04 to clear the credit against MSTC Vendor and crediting the Customer.
19. To relieve the assets the T Code ABAON has to be used.

Run T Code ABAON

Enter the Document Date

Enter the Posting date
Enter the Asset Value Date which
is the date of sale of decomm
asset

Enter the Text filed with

narration about sale of assets

Enter Sale Value of Asset Sold

Click on Simulate Button to simulate the FI entry.

The entry is simulated below:

 Click on Save button to Post the document.

As can be seen above, the sale value has been posted against the GL Code 5090103- Zero
balance Account.

An accounting document has to be passed using T Code FB50/F-03/F-02

5022002- Write off of Inventories Dr. 5000

To 5090103- Zero Balance Account Cr. 5000

This will clear the balance in the GLs 5022002 and 5090103. The balance in 5090103 has to be
made NIL at the end of all accounting periods.

The debit balance in customer will be cleared against the payment received from the customer
by the Accounts Officer (Cash).

A synopsis of all accounting entries passed from all transactions mentioned above:

a. Gross Value of the asset: Rs. 84,000.00

b. Accumulated Depn as on date of Decommissioning Rs. 76,544.00
c. Net Book Value (NBV) as on date of Decommissioning Rs. 7,456.00
d. Sale Value of the Decommissioned Assets Rs. 35,639.00
e. VAT on Sale of Scrap Rs. 1,960.15
f. TCS on Sale of Scrap Rs. 376.00
g. Commission Due to M/s MSTC Rs. 677.14
h. TDS on Commission recovered from M/s MSTC Rs. 68.00
i. Net Amount Receivable by AO (Cash) (d+e+f-g+h) Rs. 37,366.01
Step No. Particulars Accounting entry

07. ABUMN- Assets 2330001- Decomissioned Assets Dr. 7,456.00

Decommissioned 2150601- Acc. Depn _L&W Dr. 76,454.00
To 2110601 Asset-L&W Cr. 84,000.00

14. Receipt of Sale Proceeds 25102XXXX1- Collection Bank- Incoming A/c Dr. 37,366.01
by AO(Cash) To Customer Code Cr. 37,366.01

17. VF01- Invoice Posting Customer Code Dr. 37975.15

To 5022002- Inventory-Write Off Cr. 35,639.00
To 1320501- Sale tax Payable Cr. 1,960.15
To 1310852- TCS Payable Cr. 376.00

18.1. FB60- Posting of 5023499- Commission Paid To Others For Misc Service Dr. 677.14
Commission against M/s To MSTC Vendor Code Cr. 609.14
MSTC To 1310806- Tds Payable - Commission 194H Cr. 68.00

18.2. F-04 Clearing of MSTC MSTC Vendor A/c Dr. 609.14

Vendor Balance against To Customer Code Cr. 609.14
Customer

19. ABAON- Sale of Assets in 5090103- Zero balance A/c Dr. 35639.00
FI To 2330001- Decommissioned Assets Cr. 7,456.00
To 4910101- Profit on sale of assets Cr. 28,183.00

19. FB50/F-02/F-03- Clearing 5022002- Write off of Inventories Dr. 35,639.00

of Balances To 5090103- Zero Balance Account Cr. 35,639.00

User manual prepared by Animesh Priyadarshi , AO(CA3) & Rashmi Ranjan Patra AO(ERP).