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Former Member
Jul 27, 2008 at 06:22 AM

Co-Product Cost apportionment in REM

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Below scenario is for the Repetative Manufacturing, we are taking REM profile '0002'

1. We have 8 Co-Products in BOM for Ethylene Product

2. And Two Main Materials are Key Input materials (Ethane and Propane)

3. We need to allocate the cost to Co-Products on the Ratio of Value of Input Material.

Example:

Input Material:

1. Ethane : 20 Ton (Value: 200$)

2. Propane : 10 Ton (Value:2000$)

3. Fuel : 100 Ltr (600$)

Output Material (Main Product and Co-Product)

1. Ethylene: 10 Ton (Cost= 50% of Ethane + 30% of Propane + 25% of Fuel) = 100$ + 600$ + 150$ = 850$

2. Propylene: 5 Ton (Cost= 40% of Ethane + 60% of Propane + 25% of Fuel) = 80$ + 1200$ + 150$ = 1430$

3. Gasoline: 08 Ton (Cost= 5% of Ethane + 5% of Propane + 25% of Fuel) = 10$ + 100$ + 150$ = 260$

4. Pye Gas: 0.5 Ton (Cost= 5% of Ethane + 5% of Propane + 25% of Fuel) = 10$ + 100$ + 150$ = 260$

Please guide us whether this Scenario is feasible in SAP, and How we can proceed with?

Please forward us any specific documents related to these scenarios.

Thanks for your time.

We really appreciate your help.

Kind Regards.