MRP/costing view (tick the co-product indicator) for all the co-products.(forleading product also select co-product indicator in BOM)2.
If you want to use net realizable value and not apportionment structure - in material master
tick fixed price co-product.3.
Material cost estimate with quantity structure determines the quantity structure using themaster data of the leading co-product.4.
In BOM of leading co-product
Byproducts(costed using net realizable value) will be in negativequantity5.
Non leading co-products also have negative quantity
but they are indicated in BOM item data
by the “joint production” indicator.
The non leading co-products are linked to the leading co-product in the production versionCosting of co-product1.
For fixed price co-products
use net realizable value method with fixed price / net realizablevalue method with cost component split.2.
Use apportionment structure to calculate COGM for each primary product.(apportionmentstructure can be in material master or in process order)3.
The total costs of the process are allocated to the co-products for each cost component suingequivalence number.4.
Apportionment structure(AS, costing lot size, costing parameters are taken from leadingmaterial)
list all co-products to which costs should be apportioned and assign equivalencenumbers. Source assignment of a source structure is maintained here.5.
Co-products are designated in the itemization with item category A and will have negativequantities. (By products
Cost each co-product (and ensure all the co-products are selected).7.
If A is leading co-product, then B has to specify that product A is the header material, whichcontains quantity structure data.8.
For each co-product (including the leading product) the system generates an order item and
turns on the “multi items” indicator
Create process order, scheduling, availability check, preliminary costing, release of order, simultaneous costing, material withdrawl, confirmationsb.
Overhead costs / process costsd.
Preliminary settlement of co-product