REA – Recycling Administration

Technical Data
Technical Name of Business Function	J_7L_REA_CORE
Type of Business Function	Enterprise Business Function
Available As Of	SAP Enhancement Package 4 for SAP ERP 6.0
Technical Usage	Central Applications
Application Component	Recycling Administration (IS-REA)
Business Function Requiring Activation in Addition	Not relevant

This business function enables you to calculate recycling fees for specific materials based on item or weight, and allows for end-to-end transparency and the fulfillment of legal reporting requirements to environmental authorities. Recycling Administration (REA) enables precise financial reporting with recycling partners or compliance schemes, and supports companies by providing extensive cost analysis functions. It can also be used in other areas, such as packaging sustainability reporting to trading groups or the calculation of copyright fees.

You can use REA to meet the environmental reporting requirements, which are specified by law in many countries.

Besides manufacturing and selling products on the market, production and trading companies or importers are often responsible for properly disposing of and recycling these products (for example, batteries, packaging, and electrical and electronic goods). These kinds of regulations are generally independent of public waste disposal. Alternatively, companies can decide to participate in a general, collaborative recycling system, which usually incurs costs. Examples of national collaborative systems include:

Duales System Deutschland (DSD) in Germany
Altstoff Recycling Austria AG (ARA) in Austria
Eco-Emballages (ECE) in France

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component	Component	Is Needed Only for the Following Features
Software Component	SAP_APPL 604; EA-APPL 604

Features

Declaration administration is the central process of recycling administration. Based on individual requirements, REA creates the legally required declarations for reporting incurred costs for a recycling partner with whom you work. REA then transfers these declarations to Financial Accounting (FI) for further processing. The information in the periodical declarations comprises transaction data (for example, material documents and billing documents) and material master data (REA-specific enhancements to the ERP standard material master).

REA is based on a separate master data concept of articles, packaging, and fractions, which allows an exact settlement basis to be established. A REA article is a material that is used as the main value in declaration administration on the basis of the contract between the user (for example, a manufacturing company) and the recycling partner.

REA-specific recycling contracts enable you to organize the contract data defined in the licensing agreements (for example, conditions or price lists) for each of your recycling partners or compliance schemes.

REA offers extensive reporting functions to analyze the costs of the recycling process and support cost reduction. With REA, you can include projected recycling fees in your price calculation. REA uses ERP standard conditions with which the system calculates the fees for each article or accruals in SD or MM price determination.

For more information, see SAP Library under SAP ERP Central Component → Logistics → Sales and Distribution → Billing → Recycling Administration.