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Co-Products   Relevant Quick info
Products that are usually manufactured together can now be produced using one process order, but with separate settlement. One product is regarded as the main product and the remaining products are described as co-products. The system automatically creates a separate order item for each of the co-products.
Process Orders with Co-Products: Prerequisites 

  •  *Activate the indicator *Co-product in the material master of the co-product (MRP 1 screen).
  • The co-product must exist as a component in the material list  (BOM's equivalent in process order set up) of the main product (negative quantity, item type L).
  • The indicator Co-product must be activated in the General data screen of the material component.

CONFIGURATION REQUIREMENT

Enable Settlement to order item in the settlement profile

This determines whether costs from the order header can be settled to to an order item.
If you create an order to manufacture more than one product (co-products), the system generates an order item for each co-product. Settlement is then in two stages:
1. The costs for the order are distributed per the settlement rule for the order header to the order items. The equivalences for this distribution can be proposed using an apportionment structure entered in the material master record.
2. If you have set status "Delivered" or "Technically closed" for the order item, the difference between the value from the apportionment and the credit posting at the time of delivery is settled to stock.
 Co-Products: Costs  
The costs for the orders are assigned to the order header and then distributed to the individual co-products according to equivalence numbers.
Note:  You specify an apportionment structure in the material master of the main product. The apportionment structure specifies how the total costs should be distributed over the main product and the co-products.
Based on this data, the system creates the following when a process order is created:

  • One settlement rule that distributes the total order costs over the main product and the co-products (i.e. over the individual order items)
  • One settlement rule per item that assigns the costs to stock

At present, it is only possible to distribute actual costs.
Co-Products: Using a Source Structure - Optional
By using a source structure, you can enter different equivalence numbers for different cost element groups within the same apportionment structure.
Example of equivalence numbers with source structure

Cost element grp

Main product


Co-product

Production costs

1


4

Material costs

2


1

Overhead

5


3

 
Here, the cost distribution varies between the cost element groups in the apportionment structure.
If you do not use a source structure, the cost distribution must be the same for all cost element groups in the apportionment structure:
Example of equivalence numbers without source structure

Cost element grp

Main product


Co-product

Production costs

2


1

Material costs

2


1

Overhead

2


1

CONFIGURATION REQUIREMENT- OPTIONAL

 If you want to work with a source structure, you need to:

  1. Define a source structure in Customizing.

After this, define an apportionment structure in the material master of the main product.

  1. Go to the MRP 1 Tab of material master of the main product.
  2. Select the function key 'Co-prod. manufacture'.The system then displays a dialog box in which you can enter apportionment structures.
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