Co-Product & by product

Question

What is the diffrence between the co-product & the by product.How does these influence any transactions in PP?
Could u provide with me an example of a co product & by product?
Thanks & Rgds
Charan

Answer 1

Hi
By product is the product which will be creaed while making production
you have to maintain the setting in BOM with negative quantity (-). Then system automatically will pick this as by prodcut.
movement type 531 to post the by-product during confirmation. Settlement of cost will be done to the header of material.
Co product is the product
You have to activate check box in MRP2 view for co product.
<b>Co-Products</b>
Use
Products that are usually manufactured together can be produced using one production order.
The main product is the primary reason for the production process. It is displayed in the production order header. The system also creates a separate order item for the main 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 level.
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.
Creating a production order to manufacture co-products has the following advantages:
Main product and co-product(s) are settled to different receivers
Goods movements can be posted simultaneously for all products manufactured in the order
The following prerequisites must be fulfilled if you want to create a production order with co-products or by-products.
Prerequisite for the main product:
The indicator Co-product must be activated in the material master of the main product (MRP area)
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.
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 ‘1 -’).
Do not set the indictor Co-product for by-products.
Plese reward if useful
Regards
Ranga