CO PRODUCT AND BY PRODUCT IN

PRODUCTION PROCESS
 A. Master Data Set up:

A1: Material master

Main Material D12172191Z, plant 1710

2.Co product---Steam -Co product:

3. By product—steam-By Product

A2. BOM of finished Goods D12172191Z

Item Detail:

Co product indicator selected for Co product

Co product indicator not selected for By product

A3: Master recipe for Main Material:
A4: Production version

Main Material:

Production version for the Co product:

Here no BOM and Master recipe needs to be included. in other header material section maintain the
main material Number:
Now maintain for the Header—Leading co product the apportionment structure:

Material master of Main Product:

Costing 1 view –click on Joint production and maintain:

Maintain the ratio of cost to be apportioned between main and coproduct as 60% and 40% in the
equivalence number field:
 B. Costing Run-CK11N

Carry out cost estimate run for main product

Costing lot size :2000

Cost of main product==material cost of BOM components- material cost of coproduct

= 54.03 (Price in material master )*2000(costing lot size) + 0.2 (cost of By product)*2000(costing lot
size)- 43.22(Price in material master)*2000((costing lot size) = 1,08,060/1 (price unit)+0.10-
86,440/2(price unit)=64,835.

Save the cost estimate

Cost estimate run for the co product:

Cost of co product=cost of all Bom components including By- product - cost of Main product.
(similarly calculated as before)
By product cost is negligible for a costing lot size of 1.

B2: Mark and release the cost estimate

Main Product:

Future planned price is updated in material master:

Release cost estimate:

Current standard price is now update after release:

Co product:

Mark the cost estimate:

Future Planned price is updated:

Release the cost estimate:

Current standard cost estimate is updated:

 C. Order Processing:

C1: Create a process order:

Save the process order. 1000485

C2. Confirm the process order :

Since auto GR is not possible with the co product, for Goods receipt we do MIGO:

For Main product and co product batches are created:

Material document 5000000663 posted

Post confirmation for the order :components including By product are consumed.

Confirmation posted.

Now check the documented goods movement:

By product is shown as in line rejection -a planned wastage with negligible cots – (Movement type
531).

See the cost analysis report:

Total actual cost of production is 5403.00

C3: Technically complete the order

C4: Variance calculation for order:

Variance is apportioned between main product and co product in the ratio 60:40

C5: Settlement of order:

Total cost of production is settled in the ratio of 60:40 and settled on main product and co product as
settlement receivers.