Co-Product and By-Product Costing in SAP PP Scenario

Frds,
Somebody can tell me, settings/enhancement in PP for Co-Product and By-product Costing along with Header Material?
Thanx

You have posted in a wrong forum. This should have been posted in PP forum
G. Lakshmipathi

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Co products and by products during production process

hi,
I have a production scenario where in both co products as well
by products exists during production process.
We can maintain co products by choosing the indicator in material master and in BOM but how should i maintain the by products?
And also, co products and by products produced will undergo further production process with different operations, in this scenario how I can include these operations and products in my production planning? and how the costs are calculated?
Can any one please help in this regard.
Thanks and Regards,
Pavan

Hi
For Co-product just by choosing the indicator in material master and in BOM.
So when ever u confirm the production order co- product GR done automatically through 101 movement type.
For By-product
1) u have to enter the byproduct code in the BOM with -ve sign if ur by-product is fixed qty.
2) If ur by-product is varying qty then u have to post the by product qty through MIGO 531 movement type against the production order.

By Products and Co Products

Hello all,
What is the meaning of by-products and co-products??
Pls ans.
Thanks and Regards,
Umakanth.

dear
A co-product is a product that is produced in conjunction with other products. The system creates a separate order item in the production order for each co-product. As a result, it is possible to display actual costs at co-product level.
Prerequisites for a co-product:
The indicator Co-product must be activated in the material master of the co-product (MRP area)
The co-product must be listed as an item in the bill of material of the main product
On the Basic data tab page of the BOM item, the indicator Co-product must be activated in the field group General data.
A by-product is a product that is produced in conjunction with other products. The system does not create a separate order item for each by-product. The material valuation of a by-product is always based on the price specified by price control in the material master.
Prerequisites for a by-product:
The by-product must be listed as an item in the bill of material of the main product
The bill of material item must have a negative quantity (for example u20181 -u2019).
Do not set the indictor Co-product for by-products
Reward points if helpful
Thanks and regards
Ravikant Dewangan

Settings for co-product and by-product

Hi Gurus,
Can you please tell me what are the settings i need to maintained for co-product and by-product.
Regards
Rajib

Hi,
For Co-Products do the following settings.
1. Select Co-Product indicator in MRP2 view for header material
    as well as for co-product materials.
2. Define the co-products as BOM components.
3. Give negative quantity in the BOM for co-products
    Also select co-product indicator by clicking on BOM item details
    and in the Basic Data Tab.
4. To calculate the production cost of co-products give equivalence
    numbers in MRP2 view by clicking Joint Production push button
    or you can give the same in the settlement rule in the
    Production order by clicking Header menu - Settlement rule.
5. You will get the GR qty for co-products while doing MB31, 101
     for the order of the header material
For By Products
1. Donot set the co-product indicator any where.
2. Define the By-Products as BOM components and give negative qty.
Regards,
Prasad

Difference between co-product and By-product

Hi,
Can anyone tell me Difference between co-product and By-product with example?
What is their impact on costing?

Hi,
By-Product : By-Product is a Product Created While Making Production
1. The System Does not create a separate order item for each by-Product
2. The Material Valuation of a by-Product is always based on the price, specified by the price control in the material master
3. The by-product must be listed as an item in the bill of material of the main product .The bill of material item must have a negative quantity (for example 1 -)
4. Byproduct has only the -ve quantity in BOM component, it does not go for joint production costing.
5. Movement type 531 to post the By-Product during Confirmation.
6. Settlement of cost is done to the header of the material
Co-Product :A co-product is a product that is produced in conjunction with other products. The system creates a separate order item in the production order for each co-product. As a result, it is possible to display actual costs at co-product
Settings: 1.) You have to activate check box in MRP2 view for co product.
2.) For co products we also need to define the apportionate structure with equivalence number for costing purpose, this will be done in "Joint Production" details in the same view. (30:30:20:20)
Prerequisite for the main product:
1.) The indicator Co-product must be activated in the material master of the main product (MRP area)
Prerequisites for a co-product:
1.) The indicator Co-product must be activated in the material master of the co-product (MRP area)
The co-product must be listed as an item in the bill of material of the main product
2.) On the Basic data tab page of the BOM item, the indicator Co-product must be activated in the field group General data
Regards
Sunil Kumar

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Co product and By product product costing and settlement

Dear Friends,
Here is my question
In Disrete manufacturing Product costing
when we design product costing Business blue print
Instead of using co-product we wrongly map to co-product what will be the impact in costing point of view
can any one explain demerits in costing point of view
Product costing is based on Quanity structure
if my question is not clear, please do not hesitate to ask for more information
Thanks & Regards
Raj

Hi,
Please consider the following:
1. By-Product Scenario:
You need to maintain a costing BOM, to determine the standard price of the by-product. In the BOM of main product, you can use this by-product as a credit, the system will calculate the target cost based on the std cost from coting BOM.
If you dont maintain the byproduct in BOM of main product, and while confirming you are entering by-product, then the system will calculate production variance.
2. Co-Product Scenario:
You need to maintain Co-product tick in either MRP2 or Costing View and maintain the coproduct combination in the Joint Production. This is to be maintained for all the co-products. Once you are entering a production order, the system automatically uses this combination and brings in multiple lines in the production order for all the relevant materials (co-products).
When cost estimate is done, the system divides the cost for materials, activity costs, etc based on the weightage maintained in equivalent numbers.
Trust this helps.
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Co product and By-product

Hi,
Can someone differentiate between co-product and byproduct with application examples.
Moreover If someone explains the settings for both would be helpful.
Also please explain what happens during posting and costing.
Thanks
Muthu

Hi,
Coproduct:
When produce a main product, coproduct also produced simultaneously. It is having value same as main product.
Byproduct:
When produce a main product, Byproduct also produced simultaneously. It is not having much value compare to main product.
Settings for Coproduct:
1. In material master MRP2 view make coproduct indicator for main material and coproduct material.
2. In BOM item details indicate as coproduct.
3. In BOM base qty as negative qty.
Settings for Byproduct:
1. In material master MRP2 view make coproduct indicator for Byproduct material.
2. In BOM base qty as negative qty.
Regards,
Dharma

Regarding Co-Products and Bi-Products

Can any one tell me what are the configurations to be done for costing co-products in an manufacturing industry
Thanks
Sivaram

Hi,
Example for Co-Product is in PETROLEOUM Refinery along with petrol other products like diesel gets produced.
Residue during the production is by product
Co product is a product that is produced along with the main product
The system creates separate order item for co product in the component over view
It is possible to display the costs at coproduct level
By product is a product that is produced along with the main product
The system does not create separate order item for the by product
The material valuation is always based on the price specified in the price control
in the material master
Pre requisite
For main product:
ind co product must be activated in MRP2 VIEW
For coproduct :
ind co product must be activated in the mrp 2 view
The co product must be listed as an item in the main products bom - ve qty
On the basic data tab page of the bom item the indicator co product must be activated
When you do GR for main product with MB31 101 MOVEMENT TYPE for the co product GR will be automatically
Carried out.
For by product:
The by product must be listed as an item in the main products bom with - ve qty
Movement type for by product 531 in MB31
Regards,
nandha

Co products and by products

Hi,
I have a scenario where in during a production of main Finished Material, two co products will come out. These products undergo further processing and they can be sold and also these two co products are used to produce one more material (by product) which is sold as well used in the production of main Finished material.
processing of co products and production of by product take place separately in other production machines/units.
can someone please suggest how i can map this scenario? and in this situation how the BOM is created??
Regards,
Pavan

Hi Prasobh,
Material "A" is the main finished material which uses production unit "01" to produce.
During production of "A", materials "B" and "C" will come out as a co products.
Material "B" is further processed in production unit "02" and material "C" is further processed in production unit "03" to make them as sell able and usable materials.
Again material "B" and "C" are used to produce material "D" which uses production unit "04". Material "D" is also sold and
This material "D" in small quantities used in the production of main material "A".
I can get production requirement for material "A" only.
All production units are located in the same premise.
The scenario is bit complex, above explanation may give some clear picture to you.
Pavan

Co-Product and By-Product Costing in SAP PP Scenario

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