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This article applies to:

  • Product: ONESOURCE Global Trade
  • Sub-Product: IMMEX

Scrap Process (Waste and Scrap)

In general, scrap can be defined as waste, residual, or leftover material. In the industrial context, scrap refers to all waste materials leftover from the manufacturing process.
Many manufacturers struggle with how to get rid of “scrap” in a way that is not only rational, but also adheres to existing environmental preservation regulations. Scrap and waste materials, however, can provide some economic value. In some cases, it can even constitute as an input for other industries.

PRECONDITIONS

When dealing with scrap, the system will need to know what is being discharged as scrap. First, the system must be updated to show which products will be discharged under the scrap process. This is done via scrap transaction. The two available scrap transaction codes are:
Scrapt transaction codes
Meaning
XPIM
Positive Scrap Transaction for Inventoried Manufactured Product
XPPC
Positive Scrap Transaction for Purchased Components
XNIM
Negative Scrap Transaction for Inventoried Manufactured Product
XNPC
Negative Scrap Transaction for Purchased Components
There are three fields in the Transaction Preparation table that can be used to notify the IMMEX system of what value these fields will take. This can be done via ERP or by the
Item Master
 screen in ONESOURCE IMMEX. To update scrap information via the
Item Master
, open the Item Master screen and select the
Additional Tables
 tab.
In the
Additional Country
 drop-down, select
Mexico
.
If scrap values are not defined in a transaction, the IMMEX system will use the values in the below fields each time a pre-validation is executed:
Fields
Description
HS Scrap Index
Each time the selected Product Number is processed, this field should reflect how much of that process will result in waste/scrap.
ScrapDesc
Use this field to describe the waste/scrap that is produced each time the selected Product Number is processed.
ScrapValue
Use this field to enter the monetary value for a kilogram of the waste/scrap material.

START OF THE SCRAP PROCESS

Once the scrap transactions are available, waste transactions can be output using either of the two methods listed below:
Methods
Description
Scrap Invoice (Waste and Scrap)
The Scrap Invoice covers the export of all materials categorized as scrap or waste. These outputs are handled on a First In First Out (FIFO) basis.
Change of Regime of Scrap Invoice (Waste and Scrap)
The Change of Regime of Scrap Invoice covers all regime changes to materials categorized as scrap or waste. This allows consumption to be handled on a FIFO basis. An F4/A3 pedimento post-discharge will be assigned to complete the processing of the corresponding document.
Scrap Invoice (Waste and Scrap)
To create a Scrap Invoice (Scrap and Waste).
  1. Open the
    Work with Invoices
     screen and select
    Exports
    .
  2. Click
    New Invoice
     to open the
    Edit Invoice
     pop-up.
  3. In the
    Invoice Type
     drop-down, select
    Scrap (Desecho y Residuo)
    .
  4. The screen will then refresh to show additional fields that are unique to a Scrap Invoice (Waste & Scrap).
  5. Select the Pedimento that will cover this invoice (e.g. RT, A3, V1, etc.) and use the rest of the fields to enter invoice data. Fields with an asterisk (*) are mandatory and cannot be omitted.
  6. Once all information has been submitted, click
    Create Invoice
    .
  7. In the
    Product Data
     tab, add any Product Number(s) that will appear on this invoice.
  8. To add a Product Number, click
    Insert
    .
  9. Enter the Product Number in the
    ProductNum
     field and the Transaction Quantity in the
    TxnQty
     field.
  10. Repeat as many times as necessary and then click
    Save
    .
  11. The next step in the process is to prevalidate the invoice. To kick off the prevalidation process, check the invoice’s box on the far left and then click
    Process & Prevalidate Invoices
    . While this process runs, the system will perform the corresponding calculations of the total value of the transactions.
  12. After the invoice passes validation, print the Scrap Invoice and review the transaction values.
You must process COVE. After the invoice is processed by COVE, it can be closed. After the Scrap Invoice is closed, you must process FIFO. At the end, print the discharge reports that have been configured for this Scrap process.
Change of Regime of Scrap Invoice (Waste and Scrap)
In order to create a Regime Change of Scrap Invoice (Scrap and Waste), a fictitious Pedimento Number (e.g. 88 888 8888888) must be set up in the
Global Codes
 table under the
MXDUMMYPEDIMENTO
 field. This Dummy Pedimento will simulate the invoicing process and then be replaced by a real pedimento (F4, A3, etc.) later in the process.
To create a Change of Regime Scrap Invoice (Waste and Scrap), open the
Work with Invoices
 screen and select the
Exports
 tab. Next, click
New Invoice
.
New Invoice
 will open the
Edit Invoice
 pop-up. In the
Invoice Type
 drop-down, select
Cambio de Régimen
 (Change of Regimen). In the
Invoice Subtype
 drop-down, select
Scrap
.
Select the
dummy
 pedimento that will be processed during invoicing and complete all other information for the invoice. Mandatory fields are marked with an asterisk (*) and cannot be omitted. Once this information has been entered, click
Create Invoice
.
After the invoice is created, select the invoice line and on click
Process & Prevalidate Invoices
. The system will calculate the total transaction value. Please take this time to review the transaction values to if confirm the scrap invoice is correct. COVE processing will not be required until:
  • FIFO has been processed.
  • A real Pedimento Number has been assigned to the invoice.
After an invoice has been successfully prevalidated, it can be closed. After the invoice is closed, you must process FIFO.

ASSIGNING A PEDIMENTO TO A SCRAP INVOICE

After all corresponding discharges have been made, the “dummy” Pedimento Number on the processed invoices must be switched for a valid Pedimento Number.
To begin this task.
  1. Open the
    Assign Pedimento to Scrap Invoice
     screen from the
    IMMEX Tools
     menu.
  2. Select both the “dummy” Pedimento Number and the real Pedimento Number that will be assigned to the scrap invoice.
  3. Once both pedimentos have been selected, click
    Assign Pedimento
    .
Clicking
Assign Pedimento
 will assign the Pedimento Number to all operations that were performed by the initial fictitious (“dummy”) pedimento. It will now be possible to print the Scrap Discharge Reports as well as execute the COVE process for the updated invoices.

REGIME CHANGE (CAMBIO DE RÉGIMEN)

  1. For the Process of Regime change, open the
    Work with Invoices
     screen and select the
    Exports
     tab.
  2. Click
    New Invoice
     to open the
    Edit Invoice
     pop-up.
  3. In the
    Invoice Type
     drop-down, select
    Cambio de Régimen
     (Change of Regimen).
  4. Once
    Cambio de Régimen
     is selected, the Invoice Header will appear. Select the type of F4 pedimento that was previously registered in the system.
  5. Click on the
    Invoice Subtype
     drop-down and select whether this invoice contains purchased products, finished products, or scrap/waste.
  6. Enter all required information (marked with asterisks) and then click
    Create Invoice
    .
Purchased Products / Components / Finished Product Invoices
Once the invoice is saved, a second tab (Product Data) will appear. Click on this tab and then click
Select Balances
.
Click on the
Show Available Balances for Pedimento Number
 drop-down and select a Pedimento Number from the available options.
Once a Pedimento Number has been selected, the screen will refresh to show a grid with all available balances within the pedimento by part number.
To select all balances for the Cambio de Régimen (CR), click
Select All Balances
.
To select a specific balance or partial quantity for the CR, choose an item in the grid and then click its corresponding
Update Quantity
 option.
Clicking
Update Quantity
 will open the
Update Quantity
 pop-up. Make any necessary adjustments and then click
Save
.
After the desired balance has been selected, you can continue with their normal billing and validation process.

REGIME CHANGE OF SCRAP INVOICES

The only transaction codes the system will apply to assign to a Scrap Invoice are XPPC and XPIM.
Fields containing default scrap data are in the
Additional Tables
 tab of the
Item Master
 screen.
These default scrap values will be what appears on the Scrap Invoice.

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