Good Issue movement type

[sarasap]

Hello MM and CO Gurus!

I am facing the following issue with my customer (Utilities).

They will be working with non valuated materials for the devices they use

At the time of GR they capture the cost in an SAP Order (account assignment in PO is F)

Since they are utilities company they will perform stock transfers using 311 within the warehouse and U61/U62 for the grid storage location . None of these movements will have FI postings assigned.

Once per year they will tranfer the cost from the order to assets for installed devices

Once per year they will transfer from assets to different account for removed devices

They use reports for these task and they will perform them manually

But in SAP when they scrap the devices they need to perform a Goods Issue.

I was thinking about using 551 standard movment for scrap but I need a cost center for this purpose.

Since the material is non valuated can a dummy cost center be used for this GI ? Does it have any impact in accouting/ controlling ?

Can this approach also be used with movement type 201?

Thanks a lot for your valuable help

[joao_sousa2 · Accepted solution]

Since it's non-valuated the MM movement doesn't have any impact in accounting (FI and CO).

If they are scrapping the assets then you should use 551 for consistency, but since there are no financial postings, it's just a matter of correct MM reporting.

[Pardhasaradhi_Reddy_Chelikam]

Dear,

As the material is "Non-Valuated" system directly post the cost to "Consumption entry". As you said , P.O is having account assignment category as "F" i.e maintenance order etc..

Once GRN is done system post the actual cost to "Maintenance Order".

As you said your business will transfer the cost to assets from order.

And If they are scrapping the devices as an "ASSET", at the end

Prerequisites:

• If ASSET is treating as Equipment in SAP-PM, all open maintenance orders of the Equipment (ASSET) should be closed and cost of the equipment should be settled.
• Asset which is integrated with Equipment should be dismantled from functional location and deletion flag should be assigned.

Transaction Code:

ABAVN - Asset retirement by Scrapping. With this, we scrap the asset and remove it from the asset Register.

or

F-92 : Asset retirement by Scrapping. With this, we can scrap the asset and remove it from the asset Register.

Then build scrap stock using maintenance order in that functional location and do scrap sales if required.

Regards,

Pardhu