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Process documentationRecycling Administration

 

The recycling process is the complete process from creating the settlement basis (master data, Customizing, contracts), through calculating costs incurred, to generating the declaration for the recycling partner. The Recycling Administration (REA) component supports this process by providing numerous reports.

You define an article with its packaging and fraction components in the system and assign your recycling partner. Actual recycling is then carried out by the recycling partner or contract partner. With the breakdown, declaration, and payment of the fee, your recycling process is complete.

The REA process begins before the product is actually consumed and therefore anticipates the material product life cycle.

Prerequisites

  • You have configured the necessary settings in Customizing for Sales and Distribution under Start of the navigation path Billing Next navigation step Recycling Administration End of the navigation path.

  • You have entered the necessary material master data.

  • You have activated the business function REA – Recycling Administration (J_7L_REA_CORE).

Process

The ideal processing of REA activities is as follows:

  1. Manage recycling master data

    You create the following REA-specific master data:

    • Recycling partner

      A recycling partner is a logical extension of a vendor master record and allows you to configure the corresponding information for generating the declaration.

    • Price list

      You can use price lists to define how the costs for individual fractions are calculated. A price list is always valid for a particular period and company code. This enables you to define in advance that different prices are settled in different periods.

    • Fraction

    • Packaging

    • Article

      Note Note

      The special feature of REA is a three-level master data model based on article, packaging, and fraction. This allows the individual components of an article to be broken down differently, thus allowing an optimal calculation of the recycling costs incurred.

      An article in REA models a product that has to be included in reporting as a result of the contract between a company and a recycling partner. The article is composed of packaging and fractions. Packaging represents a component that comprises any number of internal fractions and that can be settled with any number of recycling partners.

      End of the note.

  2. Recycling contract management

    You model recycling partner contracts in the system. The master data for the price lists and recycling partners forms the basis for modeling the recycling contracts.

  3. Create and manage declarations

    Creating declarations is the central process of REA. REA uses transaction data and REA master data to generate and post a declaration for the recycling partner.

  4. Analysis of recycling processes

    REA provides extensive reporting functions to aggregate data, analyze costs, and minimize expenses. These functions ensure that relationships and dependencies between packaging and articles are transparent.

Note Note

Regardless of the business process (long/short-lived assortment), REA supports time dependencies when processing REA master data by taking into account time-based settings when the most important data is entered (for example, conditions or assignments between packaging and recycling partners).

Depending on the business processes of a company, you may have to adapt or reenter master data on a more frequent basis. This affects you in particular if you frequently change your assortment or parts of your assortment, or have to take into consideration temporary sales promotions (for example, bonuses during festive promotions or price lists that are restricted by time).

End of the note.

Example

Example 1:

You have included a new article in your assortment and have to settle it with an existing recycling partner.

  1. You enter the master data for the article, including the associated packaging and fractions. You assign the fractions to the packaging and the packaging to the article.

  2. You then configure the settings for the associated recycling partner and its price lists.

  3. You have then completed the actual entry process and can generate the first declarations for the period Mar as shown here (for example, assortment or periodical declaration).

  4. Independently of this, you can carry out different analyses (for example, in relation to the assignments or cost structure). This allows you to determine, for example, that another recycling partner offers better conditions for certain packaging within this period. As a result, you may enter into renegotiation with your current recycling partner.

Example 2:

You want to work with a new recycling partner.

  1. You enter the master data, including the valid price list, for the recycling partner. To do so, you enter the address, communication, and tax data in the vendor master along with the contact person, and if necessary activate account determination if documents from REA declaration administration are to be posted to Financial Accounting (FI).

  2. If, as in this example, the articles to be settled (including packaging and fractions) already exist, you must make the corresponding assignments.

  3. You can now generate the necessary declarations for the required times (in this case, starting from May).

  4. You can carry out different declarations and analyses regardless of time periods, articles, or recycling partners.