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former_member698127
Participant
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Hi All..

Cleint produces a product by using number of raw materials. Along with this product also gets a By-Product with same quantity as Main Product.

Cleint also sells this By-Product as a finished goods.

How to map this in SAP PP REM..??

BOM Configrtn to accomodate By-Product..??

Can u please brief me abt Co-Product & By-Product.??

waiting for reply,

With regards,

LN

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Answers (6)

Answers (6)

Former Member
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Hi LN

The concept of Product/By product/Co product is as follows

When you are manufacturing a Product, along with the Main product some other product come out(By product). But this will not consume any cost for manufacturing.

Total cost will setteled against the Main product, and by product revenue is also credited for the Main product, so as the cost to manufactue the product will come down.

IN SAP while creating the BOM of finished product(header material) the by product will be with -ve sign.

While conforming the production order the order will consume all the other BOM components and it will have recipt for the by product which is having -ve sign in the BOM.

While creating the material master the by product can be classified as By product or semifinished product so that we can sell the same.

Regards

Balu

0 Kudos

Hi LN,

when you do backflushing for the FERT, this byproduct will also appear in the component list. There you need to put in the qty with -ve sign for the by-product. This way system will automatically post GR for this material and for other components it will be GI.

Former Member
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Hi LN,

Client selling this second product as a finished goods, so it is a Coproduct.

Coproduct has a value as like a main product. Settlement also we have to do.

But Byproduct has a minimum value & no need to settle.

Settings for Coproduct:

1. In the material master make tick mark in coproduct indicator for Coproduct & Main material. Both material must have coproduct indicator.

2. In BOM add Coproduct as a line item with negative qty. And in item details make tick mark in Coproduct indicator.

3. In material master select Joint production in MRP view or costing view. Create equivalence and give percentage value for material cost,activity cost & overhead cost.

4. Create a order and make goods issue by MB1A 261 mvt.

5. Goods receipt by MB31 101 mvt. While doing goods receipt for main product simultaneously coproduct also will get stock. For that while doing MB31 select coproduct.

6. In MD04 check the stock for main product & coproduct.

Regards,

Dharma

former_member698127
Participant
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Hi Dharma...

Thank you for ur guidance...

As we are using REM, in the Rep Mfg profile , Movement Types tab it shows only BY Product : Movmnt Type 531; so if we create material as Co-Product ( in our case material produced along with Main product is a Co-Product as explained by u) whether system will post this material with 531 mvmnt type in MFBF transaction..?

Itz very urgent ..please reply ASAP...

with regards,

LN

Former Member
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Hi L N..,

both coproducts and byproducts are posted with 531 movement only.

only settlement of cost is different.

regards.

Former Member
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Hi LN,

Simultaneously both main product & Coproduct getting stock in MFBF. Coproduct will get stock by 531 mvt & main product by 131 mvt. That you can check in MFBF screen Post with correction before saving, if you have done the setting as I explained above.

Regards,

Dharma

former_member698542
Active Contributor
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Hi LN,

CO-PRODUCT

For By-Product the Co-Product indicator in material master MRP-2 view is not activated.

But negative qty is entered in the BOM.

The cost of main product is reduced by the By-Product cost. By-Product cost is calculated by the standard price from material masster and the quantities produced. By-Product cost is equasl to the multiplication of By-Product standard price and the quantities produced.

The cost of main product is calculated by subtracting the By-Product cost from the Production process cost for the main product.

CO-PRODUCT

Whereas for a Co-product, the Co-product indicator is activated in the material master. Negative qty entered in the BOM.

Source structure is used to distribute the cost for the main product and the co-product.

The source structure is assigned in MRP-2 view joint production.

Thanks and regards

murugesan

former_member698127
Participant
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Hi Murugesan...

Thank u for ur guidance..

The By-Product produced along with Main Product, is also a finished goods for our client. In this case , i would like to know which material type i have to use for By Product matl master..?? is it FERT..?? and what valuation class i have to use..? whether i have to use MRP views..? (Main Product is handled with MRP).

The quantity of By-Product produced along with Main Product is in 1:1 ratio. ie., Main Product Prdn Qty = By-Product Qty.

The BY-Product also sold as any other Finished Goods.

How the system will behave when we do the backflush for main product..? (Rep Mfg)

Waiting for further guidance..

with regards,

LN

Edited by: L N on Jun 6, 2008 10:55 AM

Former Member
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Hi L N..,

How you are going to settle cost that will decide your choice as co-product/by-product.

both co-product and byproduct are indicated -ve sign in quantity in the BOM.

if it is co-product but co-product check mark.

you dont required to do any special configuration for this.

"mainly how you are going to settle your cost is important point here".

if any issues comeback.

regards.

Former Member
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