Co-Product Configuration (for Cost Estimate)

Co-Product Configuration for following scenario:

 

Product A (Parent Material / Input Material), Product B, C and D are child materials (output materials). During manufacturing of Product B, we get 40% of Product D and the remaining 60% will be product B. Product is C is not the co-product, it always gets produced for 100%.

 

Solution:

 

Product B is the one you are trying to manufacture in the production process. And while doing so, the input material is A and Product D is produced. In this process Product C always gets produced.

 

B & D are co-products. C is the by-product according to the definition of these by SAP. And A is the input material. Please create the BOM for B in which A will be having a +ve qty and C & D will have -ve qty.

 

First, you have to create the BOM for B instead of A, since B is the one getting manufactured and not A. A will be either procured or manufactured in a different process. You will define BOM for A only for the process, which manufactures A.

 

We have to check Co-product indicator in Material Master (MRP2 View) for Product B and D.

 

Product B and D should have co-product checked in their "Basic Data" tab of BOM View (BOM view of Product A, I mean). For C you will have to tick the check box Fixed Price Co-Product in the Material Master Costing 1 view.

 

We have to have Apportionment structure in MRP2 View (Joint Production Button) for Product B only, and that apportionment structure (assuming we don't use Source Structure) with equivalence number will have 2 products - product B with equ. number = 60 and Product D with eq. no = 40).