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co products---equivalence number

Hi all,

In case of co products we need to define the apportionate structure with equivalence number for costing purpose, this will be done in "Joint Production" details in the same view. Say for ex---30:30:20:20

What does these figures indicate???

What is the role of these figs in costing???

what is to be done in case of the BOM??

Regards,

MHP

Former Member
Former Member replied

Manish,

1. When an order is created for Co-product header material, that particular order costs gets settled among the co-products based on the equivalence number defined in the Joint Production section of the material master of the Header/order material.

2. BOM does not reveal anything on how the costs needs to be settled. If you have maintained 30:30:20:20 (A:B:C:D) in the Joint production tab of the material master for "A" and if order is created for "A", the order costs are settled A=30%:B=30%:C=20%:D=20%.

3. Not sure of which structure you are asking for...Pls explain.

Regards,

Prasobh

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