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In joint product costing co-product is not updating with standard price for marking and releasing

Feb 13, 2017 at 07:52 AM

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Former Member

We have run joint product costing in ck11n it is showing standard price for main product, co-product and by-product correctly.

When we do marking and releasing co-product standard price is not updated with ck11n value. it has updated main product value and by-product value.

What is the reason why co-product is not taking standard price at the time marking and releasing.

Thanks in advance

Joseph david

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2 Answers

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Former Member Feb 13, 2017 at 08:11 AM
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Hi Joseph,

In costing 1 tab, in the joint production tab, you have to maintain the main grade material, then you have to execute the cost estimate for main grade material, and co product in CK40N, so that standard price will update in the material master of the main grade material and .

It is the standard behavior of the system.

Regards,

Ravi

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Former Member
Feb 14, 2017 at 01:20 PM
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Hi Joseph,

system does not create cost estimates for co-products - only for the main product a cost estimate will be created. (This is opposed to a scenario with by-products) You will see in the itemization that item category 'A' is assigned to the co-product items. The co-products are intended to reduce the total costs assigned to the main product.

In order to create a cost estimate for the co-products you have to run CK11N for them (in CK40N the structure explosion step will add them to the object list).

The reason for this design is as follows:

A co-product can be included in many BoMs and each of these processes might result in different costs for the co-product (according to costs and equivalence numbers). This is the intended system behavior. So, in order to calculate the standard price of the co-product you have to create a cost estimate for the co-product which will consider the settings in the costing view of this material (e.g. production versions).

Best regards,
Johannes

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