co-product costing

[Former Member]

Dear all,

The scenario is as below:

I have a material A. Its BOM has a co-product B. I have ticked the co-product indicators in mat. masters of both A and B. B has negative quantity in the BOM of A and also, the tick is made in the BOM.

My first question is: whether B is to be maintained as HALB or as ROH? If as HALB, then price control would be S and how will costing take place? If as ROH, then price control would be V, and how will costing take place?

Second qustion is: do i also have to maintain BOM and routing for co-product B?

Third question is: as of now, i have not maintained any BOM or routing for the co product. But, when i tried to take a costing run (CK11N ) for the co product B, then it showed the header material (A) under quantity structure. Why is it taking that material for the costing?

Kindly provide some insights.

Shrenik

[former_member196398 · Accepted solution]

Shernik,

1.

You have to maintain the co-products as HALB or FERT, it cannot be ROH as generally ROH is a procured materail, and for that materail type default we dont use Work scheduling view and Sales views which are necessary for Production/Sales.

2.

It depends upon how you want to execute production, say for example you want to excute plan based on both the products, then yes it has to be maintained. There can also be an option that Product B has to be produced separately but product A does not come as Co-Product here.

3.

Since you have used Product A in the apportinment structure of the Joint production tab, system first looks for a suitable Quantity structure for Product A, if it does not find then it looks for the co-product and takes data from it.

Hope I was able to give some insights,

Regards,

Prasobh

[Former Member]

For co product you can maintain any material type according to your business requirement.SAP has no restriction on it.

Since co products are getting produced simulataneously with main product without any extra operation ,so there is no need to maintain separate routing.

For costing to run successfully you have to maintain appropriate price for this

product in material master and for error in apportionment structure you should consult your CO consultant.

[former_member204463]

Hi Shrenik,

Generally, Co-product has the material typ, that of the parent material. It`ll will be halb or fert. And there is not need to maintain a bom for the co-product. Co-product will be included in the bom of the parent material. When we run cost estimate for the parent material, it`ll take care of the co-product as well.

Reward if cleared and close the thread.

[Former Member]

Dear Keerthi,

I have done the way you suggested, but when the BOM explodes during the costing run for parent material, it shows the price of the coproduct as zero. What should i do?

Also it gives soem error about apportionment structure. What to do about that?

Shrenik

[former_member196398]

Shrenik,

You need to maintain the apportionment structure with equivalence details in the Joint Production tab of MRP2 view or Costing 1 view.

Regards,

Prasobh

[former_member196398]

Shernik,

Check this thread where I had explained in detail about Co-Product and Bi-Products for a question,

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Regards,

Prasobh