difference between co-product and by-product

[Former Member]

hi,

can any one explain about co-oproduct and by-product and its difference.

regards,

Ram krishna

[former_member184655 · Accepted solution]

Dear Ram Krishna,

Check these links,

(movement type for co-product)

http://sapfunctional.com/PP/Co&BiProducts.htm

Regards

S Mangalraj

[Former Member]

hi,

In case of Co-product costs are settled with a apportionment structure( Define in MRP2 View - Joint Production).

In case of By-product the price of this by-product is credited to the order or the material stock account of the lead material being manufactured.

Main difference betn the two is costing co product has a resonable prize but by-product has low(minimal) prize.

Co-Product as well as by-product are defined as BOM Components/Items. Both of them have negative quantities.

When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product. You need to define the co-products with this special indicator .

E.g - Edible oil processing - Fat is seperated from main product oil, fat can ba a by product

Petroleum Crude Oil processing - Crude oil process for petrol, diesel & kerosene production. That can come under the co product.

Rgd,

Chetan

[Former Member]

Co-product VS By-product

- Receive via movement type 101/receive via movement type 531

- Must be planned in production order/can be received as unplanned

- Split the costs of the output using equivalent number or percentage/Deduct (credit) the input costs

- Estimate standard costs of co-products is possible/must put the value manually

- Then can calculate variance per co-product/cannot perform variance analysis

That's I can think of now.

Rgrds,

[Anupam1143]

HI

Check these llinks

Regards

Anupam Sharma