By product concept

[Former Member]

Dear experts,

We want to implement By product concept in our organization can any body suggest me step by step in detail to implement this By product concept?

[Former Member]

hi

A by-product is a product that is produced in conjunction with other products. The system does not create a separate order item for each by-product. The material valuation of a by-product is always based on the price specified by price control in the material master.

The SAP System allows you to post receipts of planned by-products and unplanned by-products directly from an order or a network.

A by-product is a product that is created automatically during the production process of another item, the main product. For example, coke and tar are obtained as by-products in the production of gas.

If the by-product has not been planned in the order, you must enter the goods receipt manually

by-product can be planned in the order as a component with negative quantity. For this component, a reservation item is created automatically with movement type 531 (receipt of by-product). You can enter the goods receipt as follows:

automatically during order completion confirmation

manually with reference to the order or reservation

-ashok

[Former Member]

In our organization PP-PI is implented But suppose By product is produced at operation or phase 30 then what to do? Is there any customization required for that?

Please revert.

[Former Member]

HI

as you are at PPPI

how did you created a routing?

in routing, how do you define the all components consuming at defferent operations ?

-ashok

[Former Member]

In PP-PI Master Recipe is used instead of routing. Please tell me is there any setting required in Master Recipe so also is there is any customization setting required for that?

[Former Member]

HI

generally in PP the BY-product will get into the stock along with 101 FG GR.

so there is no meaning of assigning By-product to the operation,

all the components will assign to the operation- purpose of goods issue.

-ashok

[rupesh_brahmankar3]

Dear,

By- product is noting but low value material which manufacture during the manufacturing of main product like scrap.

There is no indicator for by-product in material master. This you have to deifne in Bill of Materials of the Header (main)part with negative sign quantity. Then system automatically picks this as by-product.

There is movement type 531 to post the by-product during confirmation. Settlement of cost will be done to the header of material.

Regards,

R.Brahmankar

[Former Member]

Can U comment on following issue?

In PP-PI Master Recipe is used instead of routing. Please tell me is there any setting required in Master Recipe so also is there is any customization setting required for that?

[Former Member]

Hi shivkumar,

By products are low cost materials and generated during the processing of the main product

for by product we maintain the -ve qty in BOM as for co product there is an indicator in MRPII view.

both by and co products are maintained as -ve qty in BOM

Regards,

Anil