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    By Product and Co Product Scenario

    Uploaded by

    amit chinage
    This document discusses by-product and co-product scenarios in SAP. For by-products, the value is less than the main product and the by-product cost is subtracted from the total cost. For co-products, both products are equally important and the costs are allocated based on an appointment structure. In SAP, by-product variance is settled at the finished goods level, while co-product variance is settled based on the appointment structure between the finished and co-products.

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    By Product and Co Product Scenario

    Uploaded by

    amit chinage
    39 views31 pages
    This document discusses by-product and co-product scenarios in SAP. For by-products, the value is less than the main product and the by-product cost is subtracted from the total cost. For co-products, both products are equally important and the costs are allocated based on an appointment structure. In SAP, by-product variance is settled at the finished goods level, while co-product variance is settled based on the appointment structure between the finished and co-products.

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    This document discusses by-product and co-product scenarios in SAP. For by-products, the value is less than the main product and the by-product cost is subtracted from the total cost. For co-products, both products are equally important and the costs are allocated based on an appointment structure. In SAP, by-product variance is settled at the finished goods level, while co-product variance is settled based on the appointment structure between the finished and co-products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    39 views31 pages

    By Product and Co Product Scenario

    Uploaded by

    amit chinage
    This document discusses by-product and co-product scenarios in SAP. For by-products, the value is less than the main product and the by-product cost is subtracted from the total cost. For co-products, both products are equally important and the costs are allocated based on an appointment structure. In SAP, by-product variance is settled at the finished goods level, while co-product variance is settled based on the appointment structure between the finished and co-products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 31

    By Product and Co product Scenario

    Value of the by product is very less as compared to the main product. The price of by product
    credited to the production order or the material stock account. It is like waste or scrap.
    Co product is produced with the main product and both products are equally important. In the
    co product cost are settled with an appointment structure.
    In Bom, we can maintain both by product and c product with the negative sign.
    In co product, we need to put an extra indicator which shows co prod in Bom and also need to
    maintain the appointment structure.

    Here, in the above screenshot variance is settled at the FG level in the case of by product but in
    case of co product, variance is settled on the basis of appointment structure to finished product
    and co product.
    By Product Scenario

    I have added a component material as by product in the BOM of the finished material.

    1|Page
    Running the cost estimate (T Code CK11N) for the finished goods.
    Here, we can see that system is calculating the cost of the component material and activity cost
    for determining the cost of the finished material. Since by product is unwanted product so that
    by product cost is subtracted from the component + activity cost to determine the finished
    product cost.
    Component + Activity cost=90.48
    By Product cost= 10
    Finished product cost=90.48-10=80.48

    After saving the above cost estimate for the finished product., I am releasing the cost estimate
    using CK24. The new price 80.48$ is applicable from the march month of 2023.

    2|Page
    Creating a production order

    3|Page
    Required components quantity

    Releasing the order and goods issue using MIGO


    531 movement type is used for the GR of the by product

    4|Page
    Confirmation of order using CO15

    5|Page
    6|Page
    7|Page
    GR of order using MIGO

    Stock overview MMBE

    8|Page
    TECO of the process order

    Settlement of the order using KO88

    9|Page
    10 | P a g e
    Cost analysis in the production order

    11 | P a g e
    Selecting the layout as cost trend

    12 | P a g e
    Here, variance is calculated as -373.76 $.
    Click on the green highlighted field

    Click on the line item

    Variance is settled against the finished product as expected in case of by product.

    Co Product Scenario

    13 | P a g e
    Selecting the co product checkbox in the MRP 2 view of the finished material and also creating
    the appointment structure

    14 | P a g e
    15 | P a g e
    Selecting the co product checkbox in the MRP 2 view of the co product material

    16 | P a g e
    Creating the finished material BOM and putting the checkbox for co product

    17 | P a g e
    Cost estimate and release of the finished material and co product using CK11N and CK24

    Here, finished material cost= (component cost + activity cost)* 60%=90.48*.60=54.29


    Co prduct material cost= (component cost + activity cost)* 40%=90.48*.40=36.19

    18 | P a g e
    19 | P a g e
    Creation and release of the production order

    20 | P a g e
    GI and confirmation of the production order

    Here, co product is not coming during GI posting like by product.

    21 | P a g e
    22 | P a g e
    23 | P a g e
    Goods Receipt and TECO of the production order

    24 | P a g e
    25 | P a g e
    Checking stock in MMBE

    26 | P a g e
    Settlement of variance using KO88

    27 | P a g e
    Checking cost analysis in the production order
    Variance is settled as per the appointment structure to finished material and co product
    material

    28 | P a g e
    Some configuration related to appointment structure
    Define source structure (T Code OKEU)

    29 | P a g e
    Settlement profile configuration and assignment of source structure (T code OKO7)

    Assignment of settlement profile to the order type (T code OPJH)

    30 | P a g e
    31 | P a g e

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