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Automatic settlement of RM cost in production order

Dear All,

We have a production process in which all the required RM will be issued to the bulk process in which we will get both processed and semi processed material. The processed material will go to the bagging process and then can be sold.The semiprocessed material will again be processed and brought to the finished process.

For cost capturing we have created two production for bulk order and other one baging order.While settling the bulk order the cost of the RM issued to the bulk order is settled between the processed and semiprocessed material based on their out put quantity and the ratio we give in the settlement rule.

Now the management want the same ratio should not be given manually in the settlement rule and the system should calculate the RM cost and post to both processed and semi processed material based on their output quantity.

Please guide me to proceed further.


Shivaji Mohanty

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2 Answers

  • Posted on May 06, 2015 at 07:52 AM


    I think you may consider joint product concept...


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  • author's profile photo Former Member
    Former Member
    Posted on May 06, 2015 at 08:01 PM

    You can also try setting up your production order to put a "by-Product" into stock. This allows you to create the Production order for one material and list in the components another material that will also be put into inventory. It can be as basic as "create the production order and manually list expected quantities" Enter the actual quantities at time of GR. If the qty are consistent, you can create a BOM to hold the data.

    Attached is a picture for a production order to make 300 yds of 15 inch material. It will be cut from 200 yd (4 rolls of 50yd) of material

    The component list is the 50 yd rolls and we will put 15 yds of 30 in material in stock. The 30 inch material is listed with a qty of -150.

    When the goods receipts are processes, the 150 will be put in stock on a 531 movement type. (watch your account determination)

    I have used this process, full co-product functionality, including BOMs, apportionment tables and product costing. It is worth a test - keep it simple like this order to start.

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    • Thanks for your reply.

      We have already defined the co-product functionality (including BOMs) in the production process.

      We have defined the product costing such that based on the % given in the settlement rule, the cost is settled to both the products.

      Now our requirement is, we need to settle the cost between these co-products based on the confirmed quantity instead of giving % in the settlement rule.

      Please guide us how to proceed further.



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