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A by-product in the FG Production

Dears

We are in make-to-order scenario (variant material).

We are planning to have a new bye-product in our FG process.

Each Make-to-order will have same bye-product but cost will be different as the Sales order cost is different for each customer order.

Hence we will create separate material codes for this by product for each production.

I will make this material as 'costing relevant' and in the BOM it will be set with 'negative quantity'.

Since this is a by-product, it should have normally price control 'S', I think.

I am little confused about :

* How the cost of this by-product will be captured in the material master ? (Since it is 'Standard Price', GR will not update the price, right ?)

* Do we need to run CK40N for this by-product to update the price ?

Please offer your comments.

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2 Answers

  • Best Answer
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    Former Member
    Nov 03, 2015 at 08:33 AM

    Hi..

    You can do the following with the price for a by-product:

    1. Enter it manually in the material master

    2. Calculate it using a material cost estimate

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    Former Member
    Nov 03, 2015 at 12:18 PM

    Hi Nikki

    Generally By-product has very lass realizable/sale value and sometimes By-product is only a scrap type material. I don't know what is in your case. However, one of my project I kept it V not S to manage and avoid standard cost estimation etc where we put some estimated cost as MAP in MMaster considering its sales price.

    If ML/Act costing is active this material with V will not participate to analyze and keep the process simple but if you define it as S it will be an another area to be track..

    Now your choice

    Kamal

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