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Byproduct from subcontracting process

Hi Gurus,

My scenario is like I am receiving two materials from a raw material during subcontracting material, so I have gone through this discussion from scn (

And I have setup the process like the other material as a by product. But I am having difficulties in price reflecting in the by product.

How I setup the procedure in SAP

1. Created Subcontracting Info-record with price 20 for both materials

2. Created subcontracting PO with BOM maintained inside.

3. Main product = 50 kg, Raw material= 100 kg (Price= 500), by product = -50kg

4. Good Issued to vendor

And when I received the material as 40 kg and by product as 40 kg. But when i check the price in MR21 the price is 1320 for main and no price for the byproduct.

I need the price of the raw material to be equally distributed to the main material and the byproduct with the subcontracting charges

Can you please explain if I have done something wrong in this.



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3 Answers

  • Best Answer
    Posted on Sep 23, 2015 at 12:32 PM

    A by-product is either a UNBW (not valuated at all) or is standard price valuated and takes the price from the material master, or is moving average price valuated and you need to enter a value manually while receiving.

    The service costs for the subcontracting effort of your vendor (PO price) is not distributed among the finished and the by-product, it goes to a 100% to the finished material,

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  • Posted on Sep 23, 2015 at 12:03 PM


    You have maintained the BOM(CS01) for Main product = 50 kg where you have Raw material= 100 kg and by product = 50kg.

    Your Raw material= 100 kg , the Price is 500) but what about price for Main product = 50 kg

    But how is your byproduct is valuated - did the byproduct with material code created with a material type and how is OMS2 screen for plant of that material type.

    Can you share screens of CS03 for Main product and Raw material with byproduct!


    Biju K

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  • Posted on Sep 23, 2015 at 03:39 PM

    Hi BiTa

    Raw materials provided = Finished product + Byproduct (or scrap) --------> Subcontracting process.

    But subcontracting purchasing info record (for main product) will have the amount to be paid for assembling the main product. This price is not related to raw material or byproduct.

    I don’t think we can link this amount to byproduct or scrap generated during the process.

    Say vendor service charge is Rs.1000 for assembling the main product. You are receiving the main product (101) and also you are receiving byproduct/scrap (545). Now if you divide Rs.1000 which is service charge, how this can be justified ?, because vendor is returning byproduct/scrap to you back…!! You should pay complete Rs.1000 to vendor for his work on main product.

    After GR, how you are valuating the byproduct/scrap is left to your business.



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