Electricity production and byproducts

[former_member600146]

Dear Gurus,

I need to implement the below process for a client. Need your expertise.

My client has a power generation plant. Where electricity is the final product. The process is as below -

Stage1 - Limestone and Petcoke goes into boiler and steam produces.
Stage2 - Steam from stage1 creates electricity.

My client want to inventorize TPP petcoke which is the by product. But they do not want to show any inventory for steam or electricity.

Q1 . How can I then show TPP petcoke as a byproduct then?

Q2 . The price of TPP petcoke should be deducted from production cost( petcoke + limestone cost). Rest of the amount should be considered as production cost of electricity.

[Former Member · Accepted solution]

Hi Rajib,

If you dont want to have stocks for electricity or steam and just want to get by product then i would suggest to use production orders with out material

Then for these order use lime stone and pet coke as raw material

In same order you add the pet coke as a by product i.e. material with negative quantity.

You can ignore steam here.

For this order costs will be added  for lime stone and coke where as when you perform for by product with 531  then its cost will be removed from order. So this will be your cost of production and no need to create stock for steam and electricity.

Let me know if there are some questions.

Thanks and Regards,

Mandar

[former_member600146 · Accepted solution]

Hi Mandar,

Yes you are right. I have tried that already but only drawback is each time user need to feed the materials manually. Can we automate it?

[jogeswararao_kavala]

• You mean to say that TPP petcoke is coming out from Boiler?
• If it is so it will be part of BOM (for the input material) with negative Qty.
• Do the rest of the calculations accordingly.