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Costing Co-Products ( RELN40A_COPC_CO_PRODUCTS )
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Costing Co-Products
Description
Co-products can be costed by means of a non-order-related material cost estimate with quantity structure. The valuation of co-products is dependent on whether the product is a
primary product or a
by-product. The prerequisites for joint production are carried out in the master data (material master, BOM):
- A primary product is explicitly indicated as such in the material master.
- In the BOM, co-products (that is, primary products and by-products) are shown as items with negative quantities.
Costing primary products
Calculating the cost of goods manufactured for the primary products is carried out by breaking down the total costs of production by using an apportionment structure. You maintain the apportionment structure in the costing view in the material master of the co-product.
The costs can be apportioned according to cost element groups. If you want to distribute the costs with cost elements, you must define a source structure in Customizing for Product Cost Planning.
Including the costs for by-products
When there is a leading product for the material to be produced (main yield), all the other products are by-products.
The costs of the by-products produced are calculated using the net realizable-value method. The cost of goods manufactured for the primary product are arrived at by subtracting the fixed price of the by-product from the total cost of the manufacturing process.
Damage caused to data by errors
Software/hardware requirements
Installation information
Effects on System Administration
Effects on Customizing
Effect on batch input
Changes to the Interface
Changes in procedure
Procedure for removing dataset errors
Dependent functions
Planning
Further notes
Further information about costing co-products is available in the documentation for Product Cost Planning in the R/3 Library.
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