How to calculate Co-Product % in Std Cost estimate

[Former Member]

Dear Expert,

Kindly help me how to calculate co-product cost estimate which are assigned in main product

i had define source structure and assign it in main material master for example

Text	Mtrl Code	Valid to	Eqno.
Raw Material	102020001	31.12.9999	100	%
Chemical	102020001	31.12.9999	30	%
Chemical	103020008	31.12.9999	70	%
Process Cost	102020001	31.12.9999	35	%
Process Cost	103020008	31.12.9999	25	%
Process Cost	201010003	31.12.9999	39	%
Process Cost	111111001	31.12.9999	1	%

Further kindly mentioned what are the end user step required to follow before revaluation of Material master

for Co-product.

thanks

Trinath

[jeff_lu2]

hi ,

   we have similar scenario like the co-product you talked (repetitive manufacturing 😞

1. normally , the co-product in view Costing1 of material master should be ticked .

2. and then we will setup two sets of BOM and Routing (the one is for normal use and other one is for standard cost estimate use )

3. then create both of the two production version for normal production and calculation of std cost estimate running .

And the most important setting is that you have to give the production version which used for the calculation of std cost estimate in View costing1 .

Then the production version given will be captured during the calculation running of std cost estimate .

[Former Member]

Dear All,

Kindly correct me if i am wrong

Configuration Step which i had done.

1)  Define Qty structure type for mixed costing

2)  Define Costing Version

3)  Define Sources structure in join production i.e. PI- Process structurev

      Assignment  with source cost element are as follow

      10 - Raw Material               

      20 - Semi Finished Goods   

     30-  Finished goods              

      40 - Packing Material

     50 -Chemical

     60 - power and fuel

      70 - process cost

     80 - other cost

      90 - lubrication

End user steps

1) T- code CK91N : for alternative procurement for semi finish goods

2) T- code CK94    : 

    to maintain Mix ratio for valuation type Semi finished goods as on std price 100% for the yer 2013

3) Create Semi Finish material (102020001) as Standard price and activate Co-product in    

    the apportionment structure i had define as mentioned above screen

4) Remaining product has only active co-product check box not structure is mentioned in

    material master

5) Running the costing estimate i.e. (CK11N) now in costing estimate i am not able to     

    understand the calculation of co- product following is the calculation as per excel sheet

     but system showing me some different amount in costing estimate

difference that mark in yellow color

as per screen shot of T code : CK11N 

thanks

Trinath
      

[Former Member]

Trinath,

Mixed costing and Joint production are different processes. Mixed costing uses, when different sources of procuring a material to produce a particular output. Whereas, Joint production is a process, apart from main product you will get other products in the production process.

Please go through the below links for more information as you are bit confusing with both the processes:

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb854743a311d189ee0000e81ddfac/content.htm

http://help.sap.com/saphelp_46c/helpdata/en/34/f4af26be4411d1898f0000e8214595/content.htm

BR, Srinivas  Salpala

[rajneesh_saxena]

Dear Trinath

What Srinivas is advising you is true that you should not get confused between the two concepts.

Secondly in your two screen shots I don't find any difference. What ever you have marked in yellow color is much the same as in your excel, the only difference is of Costing lot size which is at the time CK11N, 100 times as that of excel and minor rounding differences which are obvious in such case.

Please write more precisely if something is still not clear.

Regards

Rajneesh Saxena

[Former Member]

Dear Srinivas,

I know these are two different Concept in SAP Costing  Mix Costing is done for Valuation type for material , joint production is for co-product/ by product  for material master as per above screen our client required both scenario  only i want to concept of calculation % at time of Costing Estimate

Thanks

Trinath

[Former Member]

Dear Rajneesh,

your are near to my question minor rounding differences should not be there it should tally with excel sheet as client requirement so i want calculation how system calculation that difference

thanks

Trinath

[Former Member]

Trinath,

Please make sure the below steps for both Joint production and Mixed costing scenarios:

Joint Production:

1. Create an apportionment structure and assign it in the costing-1 tab of main material.

2. In BOM, co-product quantity in negative.

3. Define Source structure with all relevant cost elements.

4. Switch on "co-product" button in both main and co-product material master either MRP tab or costing-1 tab.

5. Run CK11N for co-product values based on apportionment structure assigned in main material.

Mixed Costing:

1. Define quantity structure type (OKYD)

2. Define costing versions

3. Create alternative BOM and Routing

4. Procurement alternatives for mixed costing

5. In CK94, create mixed ratio and run CK11N

BR, Srinivas Salpala

[rajneesh_saxena]

Dear Trinath

This is my observation that while calculating any rate system divides total value with total quantity and calculates many decimal places internally. But the same when applies for calculation it multiplies with using only 2 decimal places. I have seen at many places this behavior.

Regards

Rajneesh Saxena

[Former Member]

Hi Trinath,

Based on the join production equivalence ratio, total cost would be distributed between main and co-product. You have to ensure the "co-product" switch on for both main and co-product. Also, in BOM, maintain all the co-products with negative quantity. while running, CK11N, based on joint production ratio, cost would be shared between main and co-products.

Also, observe the distributed cost for co-products is equal to the negative quantity maintained in the BOM.

BR, Srinivas Salpala

[rajneesh_saxena]

Dear Trinath

Under joint production, two or more products are produced simulteneously, are called co-product or by-product

Based on above defined equvilance numbers Cost debited to production or process order will be apportioned to the co-product.

You can see SAP document for more details in given link

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb854743a311d189ee0000e81ddfac/content.htm

http://help.sap.com/saphelp_46c/helpdata/en/7e/cb855443a311d189ee0000e81ddfac/frameset.htm

Regards

Rajneesh Saxena