Co-Product Cost apportionment in REM

[Former Member]

Below scenario is for the Repetative Manufacturing, we are taking REM profile '0002'

1. We have 8 Co-Products in BOM for Ethylene Product

2. And Two Main Materials are Key Input materials (Ethane and Propane)

3. We need to allocate the cost to Co-Products on the Ratio of Value of Input Material.

Example:

Input Material:

1. Ethane : 20 Ton (Value: 200$)

2. Propane : 10 Ton (Value:2000$)

3. Fuel : 100 Ltr (600$)

Output Material (Main Product and Co-Product)

1. Ethylene: 10 Ton (Cost= 50% of Ethane + 30% of Propane + 25% of Fuel) = 100$ + 600$ + 150$ = 850$

2. Propylene: 5 Ton (Cost= 40% of Ethane + 60% of Propane + 25% of Fuel) = 80$ + 1200$ + 150$ = 1430$

3. Gasoline: 08 Ton (Cost= 5% of Ethane + 5% of Propane + 25% of Fuel) = 10$ + 100$ + 150$ = 260$

4. Pye Gas: 0.5 Ton (Cost= 5% of Ethane + 5% of Propane + 25% of Fuel) = 10$ + 100$ + 150$ = 260$

Please guide us whether this Scenario is feasible in SAP, and How we can proceed with?

Please forward us any specific documents related to these scenarios.

Thanks for your time.

We really appreciate your help.

Kind Regards.

[Former Member]

Thanks to all

[Former Member]

Finally waht is the solution...?

[Former Member]

Dear,

It is not possible to configiure COproduct in REM.

Yiu need to go for Prodution order or process order concept.

Procedure is to maintain approtionment structure is as below

In OKEU,

create structure say 1 and assignment structure say ET.

In the source see that you have maintained the cost elements(settlement and also overhead cost element).

Next in the you need to create all the materials and enter co-product tick in all the coproducts(Propylene, Pye Gas, gosoline)and main product(Ethylene).

create BOm with all the coproducts with qty sign -ve and coproduct tick in the detailed item screen.

In the material master of Ethylene, in MRP 2 view maintain joit production structure.

In the approptionment structure give the equivalnt numberv as below

Ethylene as 30 Propylene as 52, Gasoline: 9,Pye Gas: 9.

[rupesh_brahmankar3]

Hi Kadheer,

Co product is not possible in rem, I think because of Product cost is carried out For period in rem Not for an order.Basically coproduct scenario is meant for PP-PI or discrete manufacturing.

Definition of REM itself says it has less production control effort.

Hence it may not be possible to do it in REM.

Regards,

R.Brahmankar