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Scrapping
You can request approval for scrapping, which you can post in your feeder system with movement type 551, from the customs authorities. When approved, the authorities assign you a reference number. You specify the items you want to scrap, along with the corresponding quantities and values, in the request for scrapping. The system reserves these stocks in inventory management. When you post the goods movement for scrapping in the feeder system, you have to specify the reference number from the customs authorities. Since the system already knows the customs status of the items to scrap when you start the scrapping process, there is no need to differentiate the system response for the different stock separation variants. If the goods movement contains a smaller quantity than the scrapping quantity requested from the customs authorities, the system deducts the quantity in the goods movement from the stock list and keeps the remaining quantity in reserved stocks. This enables you to post additional goods movements for scrapping, with the identical reference number from the customs authorities, until the reserved stock is depleted fully. The system checks the reserved quantities and the scrapping number, and allows you to correct any errors. NOTE You can model unplanned scrapping under logistics integration with SAP ERP 2005 and SAP R/3 Release 4.6C and later as your feeder system. To enable scrapping of products from customs warehouse stock, you have configured the activity sequence for the communication processes in Customizing for SAP Customs Management. Furthermore, in the plug-in in the feeder system, you have carried out the Customizing activity Activate Dialog for Reference Number for Scrapping in the Customs Warehouse. For more information, see the Configuration Guide for SAP Customs Management on SAP Service Marketplace under service.sap.com/swdc Download Installation and Upgrades Entry by Application Group SAP Application Components SAP GRC Global Trade Services SAP GTS <Release> Installation and Upgrade .

Activities
You create a scrapping request as a customs declaration (see Creating Customs Declarations Manually). The system assigns a scrapping number automatically.

From the Communication tab page, you can print out the scrapping list and send it to the customs authorities. Post the goods issue in your feeder system, and enter the scrapping number from SAP Customs Management as a reference. If you use SAP ERP 2005, you can enter this scrapping number on the Scrapping tab page. If you use SAP R/3 Release 4.6C or later, you can enter the scrapping number in the goods movement document, in the Material Slip field. If you want to enter the scrapping number in a different field, you can define the required field in the SAP enhancement and record the scrapping number in this field during the scrapping process. The system reserves the stock for the items defined for scrapping in the customs declaration in inventory management for customs processing, based on the scrapping customs declaration in the feeder system. The system collects all items that are flagged for scrapping. To process these entries, go to the area menu and choose SAP Customs Management Customs Processing - Import/Export Stock Postings Stock Corrections/Internal Transactions Process Scrapping Operations . For more information, see Processing Scrapping Operations. If you specify different quantities or scrapping numbers in the material documents in your feeder system, the system detects these discrepancies when it processes the scrapping operations. In this case, a dialog box appears in which you can correct the value or number in question. If you do not want to make these changes in dialog, you can cancel the goods movement for the goods issue posting in the feeder system and enter a new one with the correct values. The system triggers the reservation of the stocks flagged for scrapping and posts these quantities from the customs warehouse stocks. You can see the changes in the stock situation in the stock lists (seeStock Lists for Special Customs Procedures). At the same time, the system flags the scrapping customs declaration as completed. You can see the scrapped items and corresponding customs declarations under completed transactions in monitoring for customs processing (see Monitoring of Logistics Processes for Customs Processing).

Scrapping / Write Off

In the standard SAP definition, postings for Scrapping/ Write-off in inventory management are made, if a material can no longer be used. Scrapping / write-off may be due to when: The quality has been reduced due to prolong storage. Inventory has become out of date The material was damaged Product discontinuation Change in specification

At MyCompany, the SAP scrapping or write-off function is used to write-off loss in transit and for obsolete or scrapped stocks.

Scenarios Write-off rejected, obsolete or damaged stock Write-off transit loss

Remarks Periodic clearing of old or damaged stocks from the stores This is applicable for the materials that are lost in transit

SAP Recommended Process: Scrapping / Write Off

Upon identification of the rejected, obsolete stocks, they are transferred to the Rejected Warehouse through transfer posting within the plant.

A standard listing of the to-be-scrapped materials at the Rejected Warehouse, will be printed for stock to be written off. Approval on the listing is obtained from the concerned authorities.

Once the approval is obtained, the scrapping process will be carried in the system using relevant movement type, at the Rejected Area. A service order will be created if the scrapping services are to be obtained from a vendor, against which the service charges will be recorded.

Note: When goods are scrapped they are not reflected in the system as part of the inventory. The scrapped material will be physically moved from the Rejected Area to the Vendor Scrap Area (not defined in the system). QC can destroy the scrap material when needed.