Process Industry- How to map the Scenario?

[shailesh_mishra5]

Dear Gurus,

The is a Process Industry, Chemical Manufacturing Unit, which does the following sequence of Operation to get the Semi finished material.

1) Acid, TC, and Catalyst are 3 Raw materials

2) Acid, TC and catalyst after being put into reactors, they Undergo 2 Phases. Crude and Distillation

At crude phase, Crude is Produced. But they dont want to do confirmation of crude.

At Distillation stage, Main Fraction(MF), a semi-finsihed material is Produced

But at the distillation Phase, 2 more, Products are produced in conjugation to MF.

These 2 Products are Lower Fraction(LF) and Residue.

When these LF and Residue are produced, they again put into reactor and some qty of TC is added to achieve MF which again produces some portion of LF and Residue. And these cycle goes on.

They keep these process continuing. 

In short: MF is derived in 2 ways

Acid+TC+ Catalyst=MF

LF+Residue+TC=MF

Please help me in mapping below Points comprehensively.( They want one Order Type for 2 phases.)

1) How BOM will be made of LF and residue if I treat them as Co-Product??? Or some other technique in SAP can map it?

2) What is the Step by step Costing configuration of Co-Products. I searched lot but unable to find the proper settlement rule of Co-Products.

Thanks

Shailesh Mishra

[former_member226240]

Hi Shailesh,

Here are the replies:-

1) There would be 2 BOMs to be made.

1st BOM  ( ACID + TC + CATALYST) =  MF + LF + RESIDUE

Both LF & Residue need to be marked as Co-Product and quantity need to be put as negative.

2nd BOM ( LF + RESIDUE + TC) = MF + LF + RESIDUE

Both LF & Residue need to be marked as Co-Product and quantity need to be put as negative.

2) For Co-Product Costing . Please the below link for Apportionment structure.

http://help.sap.com/saphelp_46c/helpdata/en/90/ba61f4446711d189420000e829fbbd/frameset.htm

BR

Rahul

[shailesh_mishra5]

Dear Rahul,

Thanks for your reply. I have below doubt

1) In first stage I mix Acid, TC, Catalyst to get MF in addition to LF and residue gets produced, say it as Co-Product.

But again, Co-Products are getting consumed as we mix  LF+RS+TC=MF... How 261 of LF and RS will happen if  I mark them as Co-product with -ve Qty in BOM?

best regards

Shailesh

[former_member226240]

Hi Shailesh,

You can make the BOM item with "recursive allowed" indicator. In this way, you would be able to treat it as Co-Product and as an item in the BOM.

BR

Rahul

[shailesh_mishra5]

Dear Rahul,

As I understand that Co-Products cannot be subjected to movt type 261 and same i have tested in system. So, concept of Co-Product is not applicable here either with Recursive BOM application.

The solution which we have found here is that Client will make one of BOM of Acid+TC+ Catalyst

which will give MF. The concept of Reverse Calculation will be applied. Daily product of LF and Residue will be extrapolated at the Month end. And the LF and residue Quantity will be tracked not from system. Only during month end, LF and Residue Physical Inventory will be taken and it will be treated as Raw materials So, in the Running Process Order 262 will be done of So-called LF and residue. Stock Up(+)

And same Qty of LF and residue will be subjected to 261(Stock Down-) in the next month New Order in form of Raw material.

So cycle of 261 and 262 of LF and residue in form of Raw materials will be Perpetual and settlement of orders will also be sacrosanct.

Best regards

Shailesh

[former_member559646]

Hi

Treat LF as Semifinshed Product & Residue as Co product or By product depending on the decison by Controlling persion.

Create Reactor as Work Centre. but it depend the business requirement. How reporting need for the business.

Regards,

Sadan