SAP User Documentation

Title: Organization/Area File Name: Responsibility: Release: Status: R/3 4.6C In Process Create a Resource

Prerequisites
You must always perform the Preliminary Settlement for Co-Products before you perform the Variance Calculation and Variance Settlement.
Business Process Description Overview

A resource is the organizational unit at which an operation is carried out. The resource specifies the activity type (for example, electricity, steam, water, natural gas, etc.,) that are valid for the operation on the master recipe. A resource is assigned to a cost center, which is assigned to a master recipe. This connects the information in cost center accounting to production planning. Once a resource has been assigned to a master recipe, the activities (electricity, water and/or gas usage, for example) valid for the resource, will be listed within the operation of the recipe.

Procedural Steps
1. Access the transaction using: Menu Transaction code Logistics > Production - Process > Resources > Resource > Create Transaction code CRC1

1.1 On the screen Preliminary Settlement for Co-Products, Rework screen you will need to enter information as specified in the fields below:

Last changed on: 8/23/20118/23/2011

Last changed by: joshik

Version: 1.0

Page: 1 of 5

SAP User Documentation

Title: Organization/Area File Name: Responsibility: Release: Status: R/3 4.6C In Process Create a Resource

Field Name Plant Resource Resource category

Description Plant for which you are creating the resource Enter a resource The resource category determines the type of data to be maintained in the resource master record.

R/O/C R R R

User Action and Values Enter the Plant for which you are creating the resource Add a 4 digit number for the resource Enter Z008

Comments

To continue, click

Last changed on: 8/23/20118/23/2011

Last changed by: joshik

Version: 1.0

Page: 2 of 5

SAP User Documentation

Title: Organization/Area File Name: Responsibility: Release: Status: R/3 4.6C In Process Create a Resource

The following screen is returned after the execution

To review the actual settlement information click on the Detailed Lists button.

Last changed on: 8/23/20118/23/2011

Last changed by: joshik

Version: 1.0

Page: 3 of 5

SAP User Documentation

Title: Organization/Area File Name: Responsibility: Release: Status: R/3 4.6C In Process Create a Resource

The following example illustrates how the costs on the order header are distributed to the order items and how the costs on the order items influence the inventory values of the two co-products: The following postings have taken place for the order: The production costs have been posted with a confirmation. The material costs have been posted with a goods issue. Costs on the Order Header Source Assignment Costs Equivalences (specified in Material Master record of Chlorine Gas) 47% Chlorine Gas 53% 100% Caustic Sulfuric Acid Cell Energy $ .60 100% Chlorine Gas 47% Chlorine Gas 53% 100% Caustic Total $ 115.60

Brine

$ 40.00

$ 75.00

The Preliminary Settlement for Co-Products, Rework function apportions these costs to the order items in accordance with the apportionment structure specified in the material master record. Costs on the Order Items Source Assignment Brine Sulfuric Acid Cell Energy Total Chlorine Gas $ 18.80 $ .60 $ 39.75 $ 60.95 100% Caustic $ 21.20

$ 35.25 $ 54.65

Continue on to calculate and settle variances

What is the difference between by-product and co-product and how do you differentiate them in a BOM?
Last changed on: 8/23/20118/23/2011 Last changed by: joshik Version: 1.0 Page: 4 of 5

SAP User Documentation

Title: Organization/Area File Name: Responsibility: Release: Status: R/3 4.6C In Process Create a Resource

A: In case of Co-product costs are settled with a apportionment structure. In case of Byproduct the price of this by-product is credited to the order or the material stock account of the lead material being manufactured. Co-Product as well as by-product are defined as BOM Components/Items. Both of them have negative quantities. ( Not all negative quantity items fall under these categories!). When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product. You need to define the co-products with this special indicator .

Last changed on: 8/23/20118/23/2011

Last changed by: joshik

Version: 1.0

Page: 5 of 5