Settlement of process order

Question

In PP-PI  We want to use active ingredient for scenario:
Our Raw material is MINING ORE which will have varying proportion of COPPER & COBALT.
Valuation of ORE is based on itu2019s content of COPPER & COBALT content. So we will use active ingredient to capture value of this raw material based on it content of CU & CO.
Now when we issue this material for production to process order, our semi finished output ( Say SFG1) will also have varying content of COPPER & COBALT based on kind of input quality. There will several process orders doing diff. processe.
Now my query is
1)     Can we settle the process order variance to COPPER & COBALT content of SFG1 instead of normal settlement to SFG1?
2)     Can I maintain my valuation of SFG1 based on COPPER & COBALT content?
3)     Do we have any user exit or BADI available to replace SFG1 with CO& CU in process order settlement rule?
4)     In standard cost estimate can we capture COPPER & COBALT characteristics?
Ultimately COPPER & COBALT are our finished goods.
I try to search sap help but not much info to help me on this.
Your input will be highly appreciated.
Nitesh

Answer 1

Hi,
The concept explained is typically a co-product scenario:
Ore produces SEMI COPPER and SEMI COBALT.  SEMI COPPER and SEMI COBALT produce FIN COPPER and FIN COBALT.
This scenario is covered under u2018CO-PROUDUCTu2019 concept.  Here Ore is Raw Material, SEMI COPPER and SEMI COBALT are SEMI-PRODUCT and finally COPPER and COBALT are Finished Product.
Now estimate the standard cost for your SEMI-PRODUCTS and FINISHED PRODUCTS using integrated BOM.  Sit with your PP Consultant who can give you good input for costing the products whether based on quanity yield or quality yield.
Once this is tested and found the results are expected, the solution can be freezed.
Please let me know your feed back.
Regards,
Ashok