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CO-product configuration in REM scenario

Former Member
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I am trying to configure co-product scenario with REM process. Is it possible?

If any one worked on this scenario please let me know what are the special consideration we need to take or any SAP note available?

Thanks in advaice.

Rajesha Vittal

Accepted Solutions (1)

Accepted Solutions (1)

sundaresan_velayudam
Active Contributor
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Co product is not possible in rem, I think because of Product cost is carried out For period in rem Not for an order

Answers (3)

Answers (3)

Former Member
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Dear Rajesha,

We had tried this scenario in PetroRabigh. And REM doesn't support co-product scenario due to which we had use pp-pi.

During process order creation the co-product material are created as seperate line items for goods receipts posting.

Praveen Sharma

Former Member
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in HELP.SAP.COM is the answer.

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Product Cost Collector

Definition

Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. When you use a product cost collector, the product is the main cost object.

Use

Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:

In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot

In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot

Repetitive manufacturing

In repetitive manufacturing you always use product cost collectors as cost objects.

Product cost collectors are available from Release 4.5A onwards. In earlier releases, the costs of repetitive manufacturing materials were collected on production cost collectors. From Release 4.5A onwards, production cost collectors are converted into product cost collectors. For information on the conversion process, see Converting Production Cost Collectors into Product Cost Collectors.

Order splits for production orders

When you split production orders, the costs for the parent order and child order are allocated to the same product cost collector.

See also: Order Splits in Cost Object Controlling

Constraints

Product cost collectors cannot be used for the following objects and production environments:

Manufacturing orders that settle to a sales order item if you are using a nonvaluated sales order stock in sales-order-related production

Sales-order-related production with a valuated sales order stock, except in repetitive manufacturing environments

Engineer-to-order environments

Manufacturing orders that are part of a collective order

Joint production

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Joint production is a production process that yields two or more products in a single production run. In the Product Cost Controlling component (CO-PC), there are a number of special processing requirements in joint production environments regarding Product Cost Planning (CO-PC-PCP) and Cost Object Controlling (CO-PC-OBJ).

In shop floor control, a manufacturing order (usually a process order) is created to manufacture co-products. In the manufacturing order, co-products are carried on the order items.

In Cost Object Controlling, actual costs are collected on the header of the manufacturing order. At the end of the period, the actual costs on the order header are distributed to the individual order items. Work in process and variances are calculated at the order item level. The order items are then settled.

Integration

In joint production, the system normally accesses master data of Production Planning for the Process Industries (PP-PI) such as the master recipe and materials list, or master data of Production Planning (PP) . To distribute the planned and actual costs to the co-products, the system uses the apportionment structure that can be specified the material master record or in the manufacturing order itself.

Terminology

Co-product

You specify that a material is a co-product by selecting the Co-product indicator in the MRP view or costing view of its master record.

Fixed-price co-product

A fixed-price co-product is a special type of co-product.

Primary product

You specify that a material is a primary product by selecting the Co-product indicator in the MRP view or costing view of its master record.

Process material

A process material is a nonstock material that is used in the R/3 System to represent the process by which co-products are produced. Instead of the primary products, you can enter a process material in the recipe header and in the order header.

Process materials have material type PROC.

By-product

A by-product is a product that is produced incidental to the production process of other products. You enter by-products in the material list of a primary product or process material with a negative quantity.

You do not set the Co-product indicator in the MRP view or costing view of the master records of by-products.

Intra material

Intra materials only exist temporarily between two processing steps. Intra materials appear in the material list as items of category M, but are not costed.

If the process is interrupted because of a malfunction, however, intra materials may have to be transferred into inventory. In this case they are valuated with a price in the material master that is selected through the valuation variant for the valuation of goods received.

Intra materials have material type INTR.

Circulating material

You can specify whether the cost of a circulating material should be included in the material list. The system selects a price for the circulating material from the costing view of the material master record.

If the circulating material is flagged as relevant to costing, the material costs appear in the itemization twice: once with a plus sign and once with a minus sign. The balance is the material input costs.

Former Member
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Hi

Basically coproduct scenario is meant for PP-PI or discrete manufacturing.

Definition of REM itself says it has less production control effort.

Hence it may not be possible to do it in REM.

REgards

YMREDDY

Former Member
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thanks...YM Reddy.

No where in the document it is mentioned that it is not possible in REM scenario...hence i am trying to get the answer...

Former Member
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Hi,

you can define the co-product in mrp2 & in consequently in BOM just like scrap.It is not necessary to have REM or discrete ,it is applicable for both.

If it is useful then reward the same

if any qurey then ask frankly