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Apportionment Structure in Co product.

Hi PP Gurus,

What is a significance of Apportionment Structure in Co product?

How does it affect co product as well as main product?

PLease give inputs in detail.

Thanks in advance.

Regards,

PRADEEP

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  • Best Answer
    Posted on Sep 01, 2009 at 11:45 AM

    Dear Pradeep,

    Apportionment Structure

    Definition

    Determines how the total cost for a material is apportioned to the individual co-products

    For a primary product or process material, the apportionment structure lists the co-products to which costs are to be distributed

    Assigns equivalence numbers to those co-products

    Use

    The apportionment structure can be used to cost co-products in Product Cost Planning and to distribute actual costs ( Preliminary Settlement for Co-Products) in Cost Object Controlling.

    The cost of the primary product or process material is distributed to the co-products on the basis of equivalence numbers. You can also specify the source assignments of a source structure in the apportionment structure.

    Structure

    An apportionment structure consists of the following:

    A key identifying the apportionment structure

    A text describing the apportionment structure

    A list of co-products to which the total costs are distributed

    Integration

    You can maintain the apportionment structure in the following places:

    In the material master record in the MRP view or Costing view

    If you are using the component Production Planning for the Process Industries (PP-PI), the information in the material master record in the apportionment structure is transferred into the material list and from there into the manufacturing order.

    Directly in the header of the manufacturing order

    If you specify the apportionment structure directly in the manufacturing order, you cannot use a source structure.

    When you create a manufacturing order in Cost Object Controlling, the system generates a settlement rule on the basis of the apportionment structure. You can see this settlement rule in the manufacturing order. The equivalences specified in the apportionment structure are transferred into the settlement rule.

    You can also specify an apportionment structure in the production version.

    Source Structure

    Use

    A source structure can be used to group total costs by source assignment. If you do not use a source structure, the costs must be apportioned equally to all cost elements. Source structures therefore enable you to define distribution rules that only refer to specific cost elements.

    Prerequisites

    You define a source structure in Customizing for Product Cost Planning under Cost Estimate with Quantity Structure ® Costing in Joint Production ® Define Source Structure. You assign a source assignment to each cost element group for which you want to apportion the cost separately.

    You specify the source assignment in the material master record of the primary product or process material in the MRP view in the apportionment structure.

    When you create a source structure, make sure that each debit cost element is assigned to a source assignment. If you are using a cost object hierarchy, the cost elements distributed to the manufacturing orders assigned to the lowest node in the cost object hierarchy must also be included.

    Check these links to explore more,

    http://help.sap.com/saphelperp60_sp/helpdata/EN/90/ba7207446711d189420000e829fbbd/frameset.htm_

    http://help.sap.com/saphelperp60_sp/helpdata/EN/7e/cb855443a311d189ee0000e81ddfac/frameset.htm_

    http://help.sap.com/saphelperp60_sp/helpdata/EN/b1/c04fed439a11d189410000e829fbbd/frameset.htm_ (co-product Cost)

    Regards

    Mangalraj.S

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