Byproduct and Co Product Final Theory

8/10/2019 Byproduct and Co Product Final Theory

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ALWAYS CHECK FOR ROUTING OPEB (RATE ROUTING ORNORMAL ROUTING)

Products t!t !r" usu!##$ manufactured togetherc!% %o&'" roduc"d using one production order 'ut &*tseparate settlement+ O%" roduct *s r",!rd"d !s t" mainproduct!%d t" remainingroducts !r" d"scr*'"d as co-products+ T" s$st"- !uto-!t*c!##$ cr"!t"s ! s"!r!t"ord"r *t"- .or "!c o. t" co/roducts+

I. $ou #oo0 !t ! "tro c"-*c!# r"1%*%, *%dustr$ t"*r -!*%

*%ut -!t"r*!# &*## '" 2Crud" o*#2 dur*%, r"1%*%, t"$ ,"t2P"tro#2 23*"s"#2 2K"ros"%"2 2N!t!2 4 2W!t"r2 "tc+++

So t" &o#" o. t" roduct*o% cost sou#d %ot ,o to 2P"tro#2!#o%" !s 3*"s"# K"ros"%" !%d 2N!t!2 !r" !#so s!#!'#"+W!t"r *s %ot so#d out 'ut *s '"*%, us"d *%t"r%!# .or t"o"r!t*o%+

I% t*s sc"%!r*o 2P"tro#2+23*"s"#2 2K"ros"%"2 !%d 2N!t!2!r" d"1%"d !s coroducts *% t" -!t"r*!# -!st"r+ A%d t"cost &*c %""ds to '" d*srt*'ut"d !-o%, t"- !r" *% t"r!t*o 56756786786 so *% t" 9o*%t roduct*o% d"t!*#s &" s"#"ctt" !ort*o%-"%t structur" !%d "r" &" d"1%" t"":u*;!#"%c" %u-'"r '$ "%t"r*%, t" -!t"r*!#s !%d %u-'"rs!s r":u*r"d '$ us !s 56756786786+

No& BOM *s d"1%"d .or t" -!*% roduct 2P"tro#2 !%d3*"s"#2 2K"ros"%"2 2N!t!2 !%d W!t"r !r" d"1%"d *% /;":u!%t*t$+ H"r" t" d"1%It*o% o. &!t"r ,o"s !s 2B*Product2+

Crud" o*# *s d"1%"d !s co-o%"%t *%


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I. P"tro# 4 3*"s"# *s roduc"d .ro- d*>"r"%t roc"ss t"% $"s*. %ot ! s*%,#" BOM+ As d"scr*'"d '$ -" "?c"t 2Crud" O*#2!%d 2W!t"r2 r"-!*%*%, !## -!t"r!*#s %""ds to '" d"1%"d !sCoroducts+

E,87 Su,!r c!%" *s us"d .or -!%u.!ctur*%, su,!r *% t"roc"ss &" ,"t -o##!ss"s -ud 4 '!,!ss" !s ! '$ roduct+

Products that are usually manufactured together can be producedusing one production order.

The main product is the primary reason for the production process. Itis displayed in the production order header. The system also createsa separate order item for the main product.

A co-product is a product that is produced in conjunction with otherproducts. The system creates a separate order item in the productionorder for each co-product. As a result, it is possible to display actualcosts at co-product level.

A by-product is a product that is produced in conjunction with otherproducts. The system does not create a separate order item for eachby-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 thefollowing advantages

!ain product and co-product"s# are settled to different receivers$oods movements can be posted simultaneously for all productsmanufactured in the order

The following prere%uisites must be fulfilled if you want to create a

production order with co-products or by-products.

Prere%uisite for the main product

&. The indicator Co-product must be activated in the material masterof the main product "!'P area#


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(.Prere%uisites for a co-product

i# The indicator Co-product must be activated in the material masterof the co-product "!'P area#ii# The co-product must be listed as an item in the bill of material ofthe main product

iii# )n the *asic data tab page of the *)! item, the indicator Co-product must be activated in the field group $eneral data.iv#Co-Product always a negative value sign in bom "%ty -#

+.Prere%uisites for a by-product

The by-product must be listed as an item in the bill of material of themain productThe bill of material item must have a negative %uantity "for eample& -#.

In the PP *y and C) product is the same, ou need the negative tyin *)!.

!aterial !aster, you need to tic/ the joint Poduction in the C)Product, not for *y Product.

The !ain diff is in Product costing,

*y product ta/e the Price in !aterial master accounting view, !ultiplyT, and deduct that from the total Production order cost. 0o *yProduct deduct the same amount "if the !aterial price of *y productremains the same# no matter total cost in production order is going upor down

Co Product, In turn, you need to setup the percentage, of costsharing, in this case if the Total production order cost is going up, Coproduct cost also goes up.

@+cr"t*o% o. roduct*o% costs cost "#"-"%t ,rou/(0!@)

PKLPRO3N


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8+Cr"!t" Sourc" Structur" *% SPRO/ A@

B$ us*%, ! sourc" structur" $ou c!% "%t"r d*>"r"%t ":u*;!#"%c"%u-'"rs .or d*>"r"%t cost "#"-"%t ,rous &*t*% t" s!-"!ort*o%-"%t structur"+Example of equivalence numberswithsource structure

Cost elementgrp

Main product Co-product

M!t"r*!# costs 8 @

O;"r"!d 5

Product*o% costs @

SroCo%tro##*%,Product cost co%tro##*%,Cost o'9"ctco%tro##*%, Product cost '$ ord"r P"r*od "%d c#os*%,S"tt#"-"%tcr"!t" sourc" structur"

Select new entries button

Source Structure name 1-pkl source structure

Save

Select structure 1

Double click on assignment folder


ssignment 1!material costs

ssignment "!overheads

ssignment #!production costs

Save

Select assignment 1-material costs


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Doubleclick on source folder


Cost element! from $%%%%% to $%%%&&-

Save

Select assignment "-overhead



Cost element! from 11%%%%%

Save

Select assignment #-production costs



Cost element group!pklprodn

Save

I. $ou do %ot us" ! sourc" structur" t" cost d*str*'ut*o% -ust '" t"s!-" .or !## cost "#"-"%t ,rous *% t" !ort*o%-"%t structur"7Example of equivalence numberswithoutsource structure

Cost elementgrp

Main product Co-product

Product*o% costs 8 @

M!t"r*!# costs 8 @

O;"r"!d 8 @

5+ Ass*,% t" A##oc!t*o% Structur" to $our Product*o% Ord"rS"tt#"-"%t ro1#" !%d o% t" S"tt#"-"%t Pro1#" C"c0M!r0 o% E:u*;!#"%c" Nu-'"r !%d E%!'#" to Pro1#" .or


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Ord"r It"-

SroCo%tro##*%,Product cost co%tro##*%,Cost o'9"ctco%tro##*%, Product cost '$ ord"r P"r*od "%d c#os*%,S"tt#"-"%tcr"!t" s"tt#"-"%t ro1#"

For s"tt#"-"%t ro1#" 6@/!ss*,% sourc" structur" @

Ass*,% !##oc!t*o% structur" !@/ *% ord"r ro1#" 6@

+Cr"!t*o% o. -!t"r*!# -!st"rs@ .or -!*% roduct/S"#"ct coroduct c"c0 'o?/@6@/!-t 66@ .or co roduct/S"#"ct co roduct c"c0 'o? @68/566

@ .or '$roduct/d"s"#"ct coroduct c"c0 'o?/@65/866@ r- .or -!*% roduct/66@D6

+!.t"r cr"!t*%, ,oto c!%," -od"I% -r s"#"ct 9o*%t roduct*o% 'utto%/

For -!t"r*!# @6@P#!%t70#

No+ d"scr*t*o% structur"@ 0# structur" s"#"ct @S"#"ct ":u*;!#"%c" %u-'"rs 'utto%7M!t"r*!# @6@P#!%t PKLPAort*o%-"%t Struct @

AssT"?t Co/roduct !#*d to E:No@ -!t"r*!# costs @6@ 5@+65+86@8 8@ -!t"r*!# costs @68 5@+65+86@8 @8 o;"r"!ds @6@ 5@+65+86@8 88 o;"r"!ds @68 5@+65+86@8 @5 roduct*o% costs @6@ 5@+65+86@8 @5 roduct*o% costs @68 5@+65+86@8 @


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E%t"r !%d s!;"

-2.CREATION OF BOM 105451 CS01

FOR MATERIAL 105452-IN BASIC DATATAB SELECT CO PRODUCT CHECKBOX

5+Cr"!t*o% o. rout*%, c!6@+Cr"!t*o% o. cost "st*-!t" &*t :u!%t*t$ structur"/c0@@%/For M!t"r*!# No+ @6@+-!r0*%, !%d r"#"!s*%,


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D+Cr"!t*o% o. roduct*o% ord"r/co6@/@666666+Goods *ssu" to roduct*o% ord"r -'@!+Actu!# o;"r"!d c!#cu#!t*o%/KGI8+Co%1r-!t*o% o. roduct*o% ord"r7co@@%

@6+,oods r"c"*t/-'5@

You &*## ,"t t" GR :t$ .or -!*% roduct*o% !%d co/roduct&*#" do*%, MB5@ @6@ .or t" ord"r o. t" "!d"r -!t"r*!#

@@+B$/roduct r"c"*t/MB@C Mo;t t$"75@

5.order !"e ""01-#e$e%e& "ro'($e-)$$o*)(o& #r+*+re )1

,.CREATION OF PRODUCTION ORDER CO01 10000005.OODSISSUE MB1A

/.ACTUAL OERHEAD CALCULATION KI2

.CONFIRMATION OF PRODUCTION ORDER CO11N10.ood#re*e(" %31 %o !"e 10111.3!"rod+*re*e(" %31* %o !"e 51

12.TO MAKE PRODUCTION ORDER TECHNICALL6 COMPLETE CO02

1.CALCULATION OF ARIANCES KKS2


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8+ Mo##!ss"s -ud 4 B!,!ss" !r" us"d *% t" s"!r!t" #!%ts!s ! r!& -!t"r*!# .or -!%u.!ctur*%, d*>"r"%t roducts #*0"!#coo# o&"r "tc+

I% su,!r -., * !;" cr"!t"d su,!r c!%" !s RM 4 su,!r !s !FG -!t"r*!# -!st"rs+I% BOM &"## d"1%" -o##!ss"s-ud 4 '!,!ss" !s ! '$roduct &*t /;" :u!%t*t$+

You %""d to cr"!t" Mud B!,!s" !%d Mo#!ss"s !s M!t-!st"rs+++ O%#$ t"% $ou c!% *%c#ud" t"- *% t" BOM !s /;":t$+++

I do%t t*%0 CO roducts *s t" r*,t ot*o%+ You %""d to tr"!t*t !s ! '$ roduct+++


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For Co/Products do t" .o##o&*%, s"tt*%,s+

@+ S"#"ct Co/Product *%d*c!tor *% MRP8 ;*"& .or "!d"r-!t"r*!#!s &"## !s .or co/roduct -!t"r*!#s+8+ 3"1%" t" co/roducts !s BOM co-o%"%ts+5+ G*;" %",!t*;" :u!%t*t$ *% t" BOM .or co/roducts

A#so s"#"ct co/roduct *%d*c!tor '$ c#*c0*%, o% BOM *t"-d"t!*#s!%d *% t" B!s*c 3!t! T!'++ To c!#cu#!t" t" roduct*o% cost o. co/roducts ,*;"":u*;!#"%c"%u-'"rs *% MRP8 ;*"& '$ c#*c0*%, Jo*%t Product*o% us'utto%or $ou c!% ,*;" t" s!-" *% t" s"tt#"-"%t ru#" *% t"Product*o% ord"r '$ c#*c0*%, H"!d"r -"%u / S"tt#"-"%t ru#"+

For B$ Products

@+ 3o%ot s"t t" co/roduct *%d*c!tor !%$ &"r"+8+ 3"1%" t" B$/Products !s BOM co-o%"%ts !%d ,*;"%",!t*;" :t$+


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I !;" sc"%!r*o r",!rd*%, Co Product !%d B$ Product *% -$c#*"%t #!c"+

M!$ I 0%o& t!t &!t *s t" Co Product !%d B$ Productco%c"t *% Co%tro##*%, -odu#"

!%d o& ;!#u!t*o% !%d st!%d!rd r*c"s !"%"d+

P#"!s" #"t -" 0%o& &!t !r" t" co%1,ur!t*o% r":u*r"d+

You %""d to d"1%" .o##&o*%, S"tt*%, .or Co Product7

@+ Cr"!t" Sourc" Structur" *% SPRO8+ Ass*,% t" Sourc" Structur" to $our Product*o% Ord"rS"tt#"-"%t ro1#" !%d o% t" S"tt#"-"%t Pro1#" C"c0 M!r0o% E:u*;!#"%c" Nu-'"r !%d E%!'#" to Pro1#" .or Ord"r It"-5+ O% $our -!*% M!t"r*!# M!st"r Cost*%, @ T!' c"c0 -!r0

Co Product Ot*o% c#*c0 o% Jo*%t Product*o% ,*;" t"Nu-'"r !%d s"#"ct t" Sourc" Structur" !%d c#*c0 o%E:u*;!#!%c" Nu-'"r 'utto% o% t" s!-" scr""% E%t"r $our-!*% roduct !%d Co Product d"1%" t" E:u*;!#%c" Nu-'"r

For E?!-#" M!*% Product !%d Co Product r!t*o *s 7 so$ou !"; to d"1%" 'ot %u-'"rs

+ I% BOM c"c0 Co Product !%d t" t$ o. $our Co Productt" t$ &*## '" *% N",!t*;"+

O%c" You cr"!t" Product*o% Ord"r s$st"- &*## so& t&o #*%"It"-s !s OIT .or 'ot t" -!t"r*!#s+

I% c!s" o. Co/roduct costs !r" s"tt#"d &*t ! !ort*o%-"%tstructur"( 3"1%" *% MRP8 *"& / Jo*%t Product*o%)+


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I% c!s" o. B$/roduct t" r*c" o. t*s '$/roduct *s cr"d*t"dto t" ord"r or t" -!t"r*!# stoc0 !ccou%t o. t" #"!d-!t"r*!# '"*%, -!%u.!ctur"d+

M!*% d*>"r"%c" '"t% t" t&o *s cost*%, co roduct !s !r"so%!'#" r*" 'ut '$/roduct !s #o&(-*%*-!#) r*"+

Co/Product !s &"## !s '$/roduct !r" d"1%"d !s BOMCo-o%"%ts=It"-s+ Bot o. t"- !;" %",!t*;" :u!%t*t*"s+

W"% BOM *s cr"!t"d .or FERT $ou c!% s"" o%" *%d*c!tor *%COMPONENT 3ETAILS scr""% .or co/roduct+ You %""d tod"1%" t" co/roducts &*t t*s s"c*!# *%d*c!tor +

E+, / Ed*'#" o*# roc"ss*%, / F!t *s s""r!t"d .ro- -!*%roduct o*# .!t c!% '! ! '$ roduct

P"tro#"u- Crud" O*# roc"ss*%, / Crud" o*# roc"ss .or "tro#d*"s"# 4 0"ros"%" roduct*o%+ T!t c!% co-" u%d"r t" coroduct+

Co/roduct S B$/roduct

/ R"c"*;" ;*! -o;"-"%t t$" @6@=r"c"*;" ;*! -o;"-"%tt$" 5@/ Must '" #!%%"d *% roduct*o% ord"r=c!% '" r"c"*;"d !su%#!%%"d/ S#*t t" costs o. t" outut us*%, ":u*;!#"%t %u-'"r or"rc"%t!,"=3"duct (cr"d*t) t" *%ut costs/ Est*-!t" st!%d!rd costs o. co/roducts *s oss*'#"=-ust utt" ;!#u" -!%u!##$/ T"% c!% c!#cu#!t" ;!r*!%c" "r co/roduct=c!%%ot "r.or-;!r*!%c" !%!#$s*s

For Co/Products do t" .o##o&*%, s"tt*%,s+

@+ S"#"ct Co/Product *%d*c!tor *% MRP8 ;*"& .or "!d"r


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-!t"r*!#!s &"## !s .or co/roduct -!t"r*!#s+8+ 3"1%" t" co/roducts !s BOM co-o%"%ts+5+ G*;" %",!t*;" :u!%t*t$ *% t" BOM .or co/roducts

A#so s"#"ct co/roduct *%d*c!tor '$ c#*c0*%, o% BOM *t"-d"t!*#s!%d *% t" B!s*c 3!t! T!'++ To c!#cu#!t" t" roduct*o% cost o. co/roducts ,*;"":u*;!#"%c"%u-'"rs *% MRP8 ;*"& '$ c#*c0*%, Jo*%t Product*o% us'utto%or $ou c!% ,*;" t" s!-" *% t" s"tt#"-"%t ru#" *% t"Product*o% ord"r '$ c#*c0*%, H"!d"r -"%u / S"tt#"-"%t ru#"++ You &*## ,"t t" GR :t$ .or co/roducts &*#" do*%, MB5@

@[email protected] t" ord"r o. t" "!d"r -!t"r*!#

For B$ Products


roduct *s t" s!-" You %""d t" %",!t*;" t$ *% BOM+

M!t"r*!# M!st"r $ou %""d to t*c0 t" 9o*%t Poduct*o% *% t"CO Product %ot .or B$ Product+

T" M!*% d*> *s *% Product cost*%,

B$ roduct t!0" t" Pr*c" *% M!t"r*!# -!st"r !ccou%t*%,;*"& Mu#t*#$ TY !%d d"duct t!t .ro- t" tot!# Product*o%ord"r cost+ So B$ Product d"duct t" s!-" !-ou%t (*. t"

M!t"r*!# r*c" o. B$ roduct r"-!*%s t" s!-") %o -!tt"rtot!# cost *% roduct*o% ord"r *s ,o*%, u or do&%

Co Product I% tur% $ou %""d to s"tu t" "rc"%t!," o.cost s!r*%, *% t*s c!s" *. t" Tot!# roduct*o% ord"r cost *s,o*%, u Co roduct cost !#so ,o"s u+


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No& co-*%, to *ts ;!#u!t*o% / T"*r r*c" co%tro# *s usu!##$ S!%d t" st!%d!rd cost .or t"- *s -!*%t!*%"d -!%u!##$ .ro-MR8@+++

W"% t" '$ roducts !r" r"c"*;"d *%to *%;"%tor$ .ro-roduct*o% ord"r t" tot!# cost o. su,!rc!%" *ssu"d to t"

roduct*o% ord"r &*## ,"t r"duc"d !ccord*%,#$ *+"+ Cost o.Su,!r Cost o. Su,!rc!%" / (t$ o. '!,!s"=-ud=-o#!ss"s Std cost) < Ot"r o;"r"!ds

I !;" sc"%!r*o r",!rd*%, Co Product !%d B$ Product *% -$c#*"%t #!c"+

M!$ I 0%o& t!t &!t *s t" Co Product !%d B$ Productco%c"t *% Co%tro##*%, -odu#"

!%d o& ;!#u!t*o% !%d st!%d!rd r*c"s !"%"d+

P#"!s" #"t -" 0%o& &!t !r" t" co%1,ur!t*o% r":u*r"d+

You %""d to d"1%" .o##&o*%, S"tt*%, .or Co Product7


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@+ Cr"!t" Sourc" Structur" *% SPRO8+ Ass*,% t" Sourc" Structur" to $our Product*o% Ord"rS"tt#"-"%t ro1#" !%d o% t" S"tt#"-"%t Pro1#" C"c0 M!r0o% E:u*;!#"%c" Nu-'"r !%d E%!'#" to Pro1#" .or Ord"r It"-

5+ O% $our -!*% M!t"r*!# M!st"r Cost*%, @ T!' c"c0 -!r0Co Product Ot*o% c#*c0 o% Jo*%t Product*o% ,*;" t"Nu-'"r !%d s"#"ct t" Sourc" Structur" !%d c#*c0 o%E:u*;!#!%c" Nu-'"r 'utto% o% t" s!-" scr""% E%t"r $our-!*% roduct !%d Co Product d"1%" t" E:u*;!#%c" Nu-'"r

For E?!-#" M!*% Product !%d Co Product r!t*o *s 7 so$ou !"; to d"1%" 'ot %u-'"rs

+ I% BOM c"c0 Co Product !%d t" t$ o. $our Co Product

t" t$ &*## '" *% N",!t*;"+

O%c" You cr"!t" Product*o% Ord"r s$st"- &*## so& t&o #*%"It"-s !s OIT .or 'ot t" -!t"r*!#s+

B$ roduct *s t" roduct &*c &*## '" cr"!"d &*#" -!0*%,roduct*o%$ou !;" to -!*%t!*% t" s"tt*%, *% BOM &*t %",!t*;":u!%t*t$ (/)+ T"% s$st"- !uto-!t*c!##$ &*## *c0 t*s !s '$rodcut+-o;"-"%t t$" 5@ to ost t" '$/roduct dur*%,co%1r-!t*o%+ S"tt#"-"%t o. cost &*## '" do%" to t" "!d"ro. -!t"r*!#+Co roduct *s t" roduct

You !;" to !ct*;!t" c"c0 'o? *% MRP8 ;*"& .or co roduct+Co/Products

Products t!t !r" usu!##$ -!%u.!ctur"d to,"t"r c!% '"roduc"d us*%, o%" roduct*o% ord"r+


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T" -!*% roduct *s t" r*-!r$ r"!so% .or t" roduct*o%roc"ss+ It *s d*s#!$"d *% t" roduct*o% ord"r "!d"r+ T"s$st"- !#so cr"!t"s ! s"!r!t" ord"r *t"- .or t" -!*%

roduct+

A co/roduct *s ! roduct t!t *s roduc"d *% co%9u%ct*o%&*t ot"r roducts+ T" s$st"- cr"!t"s ! s"!r!t" ord"r*t"- *% t" roduct*o% ord"r .or "!c co/roduct+ As ! r"su#t*t *s oss*'#" to d*s#!$ !ctu!# costs !t co/roduct #";"#+

A '$/roduct *s ! roduct t!t *s roduc"d *% co%9u%ct*o%&*t ot"r roducts+ T" s$st"- do"s %ot cr"!t" ! s"!r!t"ord"r *t"- .or "!c '$/roduct+ T" -!t"r*!# ;!#u!t*o% o. !

'$/roduct *s !#&!$s '!s"d o% t" r*c" s"c*1"d '$ r*c"co%tro# *% t" -!t"r*!# -!st"r+

Cr"!t*%, ! roduct*o% ord"r to -!%u.!ctur" co/roducts !st" .o##o&*%, !d;!%t!,"s7

M!*% roduct !%d co/roduct(s) !r" s"tt#"d to d*>"r"%tr"c"*;"rsGoods -o;"-"%ts c!% '" ost"d s*-u#t!%"ous#$ .or !##

roducts -!%u.!ctur"d *% t" ord"r

T" .o##o&*%, r"r":u*s*t"s -ust '" .u#1##"d *. $ou &!%t tocr"!t" ! roduct*o% ord"r &*t co/roducts or '$/roducts+

Pr"r":u*s*t" .or t" -!*% roduct7

*) T" *%d*c!tor Co/roduct -ust '" !ct*;!t"d *% t" -!t"r*!#-!st"r o. t" -!*% roduct (MRP !r"!)

Pr"r":u*s*t"s .or ! co/roduct7

*) T" *%d*c!tor Co/roduct -ust '" !ct*;!t"d *% t" -!t"r*!#-!st"r o. t" co/roduct (MRP !r"!)**) T" co/roduct -ust '" #*st"d !s !% *t"- *% t" '*## o.-!t"r*!# o. t" -!*% roduct


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***) O% t" B!s*c d!t! t!' !," o. t" BOM *t"- t" *%d*c!torCo/roduct -ust '" !ct*;!t"d *% t" 1"#d ,rou G"%"r!#d!t!+

Pr"r":u*s*t"s .or ! '$/roduct7

*) T" '$/roduct -ust '" #*st"d !s !% *t"- *% t" '*## o.-!t"r*!# o. t" -!*% roduct**) T" '*## o. -!t"r*!# *t"- -ust !;" ! %",!t*;" :u!%t*t$(.or "?!-#" @ /)+

Co-'roduct Con(guration for following scenario!'roduct )'arent Material * +nput Material, 'roduct

. C and D are child materials )output materials,/During manufacturing of 'roduct . we get $%0 of'roduct D and the remaining %0 will be product ./'roduct is C is not the co-product it alwa2s getsproduced for 1%%0/Solution!Product B *s t" o%" $ou !r" tr$*%, to -!%u.!ctur" *% t"

roduct*o% roc"ss+ A%d &*#" do*%, so t" *%ut -!t"r*!# *sA !%d Product 3 *s roduc"d+ I% t*s roc"ss Product C!#&!$s ,"ts roduc"d+B 4 3 !r" co/roducts+ C *s t" '$/roduct !ccord*%, to t"d"1%*t*o% o. t"s" '$ SAP+ A%d A *s t" *%ut -!t"r*!#+ P#"!s"cr"!t" t" BOM .or B *% &*c A &*## '" !;*%, ! "r"%t roc"ss+ You &*##d"1%" BOM .or A o%#$ .or t" roc"ss &*c -!%u.!ctur"s A+W" !;" to c"c0 Co/roduct *%d*c!tor *% M!t"r*!# M!st"r(MRP8 *"&) .or Product B !%d 3+


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Product B !%d 3 sou#d !;" co/roduct c"c0"d *% t"*r2B!s*c 3!t!2 t!' o. BOM *"& (BOM ;*"& o. Product A I-"!%)+ For C $ou &*## !;" to t*c0 t" c"c0 'o? F*?"d Pr*c"

Co/Product *% t" M!t"r*!# M!st"r Cost*%, @ ;*"&+W" !;" to !;" Aort*o%-"%t structur" *% MRP8 *"&(Jo*%t Product*o% Butto%) .or Product B o%#$ !%d t!t!ort*o%-"%t structur" (!ssu-*%, &" do%t us" Sourc"Structur") &*t ":u*;!#"%c" %u-'"r &*## !;" 8 roducts /roduct B &*t ":u+ %u-'"r D6 !%d Product 3 &*t6

I% c!s" o. Co/roduct costs !r" s"tt#"d &*t ! !ort*o%-"%tstructur"+ I% c!s" o. B$/roduct t" r*c" o. t*s '$/roduct *scr"d*t"d to t" ord"ror t" -!t"r*!# stoc0 !ccou%to. t"#"!d -!t"r*!# '"*%, -!%u.!ctur"d+ Co/Product !s &"## !s '$/roduct !r" d"1%"d !s BOM Co-o%"%ts=It"-s+ Bot o.t"- !;" %",!t*;" :u!%t*t*"s+ ( Not !## %",!t*;" :u!%t*t$*t"-s .!## u%d"r t"s" c!t",or*"sQ)+ W"% BOM *s cr"!t"d .orFERT $ou c!% s"" o%" *%d*c!tor *% COMPONENT 3ETAILSscr""% .or co/roduct+ You %""d to d"1%" t" co/roducts

&*t t*s s"c*!# *%d*c!tor

@+ S"#"ct Co/Product *%d*c!tor *% MRP8 ;*"& .or "!d"r-!t"r*!#!s &"## !s .or co/roduct -!t"r*!#s+8+ 3"1%" t" co/roducts !s BOM co-o%"%ts+5+ G*;" %",!t*;" :u!%t*t$ *% t" BOM .or co/roductsA#so s"#"ct co/roduct *%d*c!tor '$ c#*c0*%, o% BOM *t"-d"t!*#s!%d *% t" B!s*c 3!t! T!'++ To c!#cu#!t" t" roduct*o% cost o. co/roducts ,*;"":u*;!#"%c"%u-'"rs *% MRP8 ;*"& '$ c#*c0*%, Jo*%t Product*o% us'utto%


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or $ou c!% ,*;" t" s!-" *% t" s"tt#"-"%t ru#" *% t"Product*o% ord"r '$ c#*c0*%, H"!d"r -"%u / S"tt#"-"%t ru#"++ You &*## ,"t t" GR :t$ .or co/roducts &*#" do*%, MB5@@6@

.or t" ord"r o. t" "!d"r -!t"r*!#For B$ Products


I% c!s" o. Co/roduct costs !r" s"tt#"d &*t ! !ort*o%-"%tstructur"+ I% c!s" o. B$/roduct t" r*c" o. t*s '$/roduct *s

cr"d*t"d to t" ord"r or t" -!t"r*!# stoc0 !ccou%t o. t"#"!d -!t"r*!# '"*%, -!%u.!ctur"d+ So $ou c!%%ot ost !%!uto-!t*c ,oods r"c"*t .or co/roducts+ Co/Product !s &"##!s '$/roduct !r" d"1%"d !s BOM Co-o%"%ts=It"-s+ Boto. t"- !;" %",!t*;" :u!%t*t*"s+ W"% BOM *s cr"!t"d .orFERT $ou c!% s"" o%" *%d*c!tor *% COMPONENT 3ETAILSscr""% .or co/roduct+ You %""d to d"1%" t" co/roducts&*t t*s s"c*!# *%d*c!tor +

@6@ -o;"-"%t &*## t!0" #!c" .or t" -!t"r*!# o. &*croduct*o% ord"r o. t" -!t"r*!# *s cr"!t"d !%d *% c!s" o. co/roduct $ou !r" cr"!t*%, roduct*o% ord"r o. o%#$ o%"-!t"r*!# !%d t" ot"r -!t"r*!# ,"ts cr"!t"d s*-u#t!%"ous#$.or &*c %o %""d o. cr"!t*%, s""r!t" ord"r or roduct*o%#!%%*%,++

t!t *s t" r"!so% !uto GR *s %ot oss*'#" .or co/roduct+

Y"s $ou !r" r*,t *. ! -!t"r!*# *s coroduct $ou %""d to!ct*;!t" t" coroduct c"c0 'o? *% -!t"r*!# -!st"r MRP8;*"&+ A#so *% t" BOM $ou %""d to d"1%" t*s -!t"r*!# *% /;":u!%t*t$+ For coroducts &" !#so %""d to d"1%" t"!ort*o%!t" structur" &*t ":u*;!#"%c" %u-'"r .or cost*%,uros" t*s &*## '" do%" *% 2Jo*%t Product*o%2 d"t!*#s *% t"


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s!-" ;*"&+

B*roduct !s o%#$ t" /;" :u!%t*t$ *% BOM co-o%"%t *tdo"s %ot ,o .or 9o*%t roduct*o% cost*%,+

'rocess 3rders with Co-'roducts! 'rerequisites

4ctivate the indicator 4Co-product*% t" -!t"r*!#-!st"r o. t" co/roduct (MRP @ scr""%)+

T" co/roduct -ust "?*st as a component in thematerial list (BOMs ":u*;!#"%t *% roc"ss ord"r s"t u) o.t" -!*% roduct (%",!t*;" :u!%t*t$ *t"- t$" L)+

T" *%d*c!tor Co-productmust be activated in theGeneral datascr""% o. t" -!t"r*!# co-o%"%t+

I. $ou cr"!t" !% ord"r to -!%u.!ctur" -or" t!% o%" roduct(co/roducts) the s2stem generates an order item foreach co-product+ S"tt#"-"%t *s t"% *% t&o st!,"s7@+ T" costs .or t" ord"r !r" d*str*'ut"d "r t" s"tt#"-"%tru#" .or t" ord"r "!d"r to t" ord"r *t"-s+ T"

":u*;!#"%c"s .or t*s d*str*'ut*o% c!% '" roos"d us*%, !%!ort*o%-"%t structur" "%t"r"d *% t" -!t"r*!# -!st"rr"cord+8+ I. $ou !;" s"t st!tus 23"#*;"r"d2 or 2T"c%*c!##$ c#os"d2.or t" ord"r *t"- t" d*>"r"%c" '"t&""% t" ;!#u" .ro- t"!ort*o%-"%t !%d t" cr"d*t ost*%, !t t" t*-" o. d"#*;"r$*s s"tt#"d to stoc0+

Co-'roducts! Costs

T" costs .or t" ord"rs !r" !ss*,%"d to t" ord"r "!d"r!%d t"% d*str*'ut"d to t" *%d*;*du!# co/roducts accordingto equivalence numbers/Not"7 You s"c*.$ !% !ort*o%-"%t structur" *% t" -!t"r*!#-!st"r o. t" -!*% roduct+ T" !ort*o%-"%t structur"s"c*1"s o& t" tot!# costs sou#d '" d*str*'ut"d o;"r t"-!*% roduct !%d t" co/roducts+


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B!s"d o% t*s d!t! t" s$st"- cr"!t"s t" .o##o&*%, &"% !roc"ss ord"r *s cr"!t"d7

O%" s"tt#"-"%t ru#" t!t d*str*'ut"s t" tot!# ord"rcosts o;"r t" -!*% roduct !%d t" co/roducts (*+"+ o;"r

t" *%d*;*du!# ord"r *t"-s) O%" s"tt#"-"%t ru#" "r *t"- t!t !ss*,%s t" costs to

stoc0

At r"s"%t *t *s o%#$ oss*'#" to d*str*'ut" !ctu!# costs+Co-'roducts! 5sing a Source Structure -3ptionalB$ us*%, ! sourc" structur" $ou c!% "%t"r d*>"r"%t":u*;!#"%c" %u-'"rs .or d*>"r"%t cost "#"-"%t ,rous&*t*% t" s!-" !ort*o%-"%t structur"+Example of equivalence numberswithsource

structure

Cost elementgrp

Mainproduct

Co-product

Product*o% costs @

M!t"r*!# costs 8 @

O;"r"!d 5

H"r" t" cost d*str*'ut*o% ;!r*"s '"t&""% t" cost "#"-"%t,rous *% t" !ort*o%-"%t structur"+I. $ou do %ot us" ! sourc" structur" t" cost d*str*'ut*o%-ust '" t" s!-" .or !## cost "#"-"%t ,rous *% t"!ort*o%-"%t structur"7Example of equivalence numberswithoutsourcestructure

Cost elementgrp

Mainproduct

Co-product

Product*o% costs 8 @


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M!t"r*!# costs 8 @

O;"r"!d 8 @

C367+859:+36 9E;5+9EME6:-3':+36"r"%c" '"t&""% co/roduct !%d '$/roduct *s t!t '$/roductc!% '" co%1r-"d !uto-!t*c!##$ (!%d $ou!ss*,% *t to o"r!t*o%) 'ut co/roduct c!%'" co%1r-"d o%#$ ;*! MB5@


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Re: B! "rod+* ; Co "rod+* : RePosted !ay >, (


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Byproduct and Co Product Final Theory

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Transcript of Byproduct and Co Product Final Theory