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How does settlement/finished goods work for PP order with co-products?

In the production order, there is a bom with the finished goods and co-product. When doing confirmation, there is no goods movement posted.

The settlement rule is automatically assigned to order items with percentages.

When performing settlement (before TECO), there are no accounting postings ie only controlling postings to order item level. When performing settlement (after TECO), there are postings to variances (the full costs of production).

For normal production (without co-products), there are material movement postings during confirmations as well as settlement.

Anyone know how it works for co-products?

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  • Best Answer
    Posted on Sep 17, 2010 at 08:51 AM

    1. For a CO- Product .. BOM should have the CO-Product Tick .

    2. Both the FG and Co_product Should have a Co Product Tick in the materal master .

    3. Souce Structure should be created in transaction OKEU and the percentages as per structure should be maintined in the main products( material master).

    4. In Process Order BOm, the co-product should be specified as -ve quantity .

    5. If all the things are maintained , during GR of Process Order , you will receive both the FG and Co-Product .This part is only difference , there is no different in settlement process w.r.t normal goods.

    Kindly revert back with things you have maintained and for any further clarifications.


    Sarada S Sil

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    • Former Member Sarada Sil

      I apologize for interrupting the flow of this thread. I also have found that co-products react very differently than normal Planned Production (PP) orders. In our situation, all of the ticks inidicated are required, Material Master, BOM, etc. Also, the negative qty for the BOM is reflected as described.

      The difference is definitely there when receiving the products (both parent and co-product) into inventory stock. The receipt or delivery exists for FI purposes (dr inventory and cr mfg offset), but no posting occurs in the order. It is like the order credit posting is hidden from the view of CO. At month end, we run two settlement programs. One just for co-products (CO8A or CO8B for preliminary co-product settlement) and the normal CO88 settlement. Once the settlement happens, the order then goes to zero. The variances are distributed to the specific variance accounts and everything is again in balance. This works well, but researching and viewing it can be confusing. I seem to recall a co-product report that shows more detail than KOB1 but I can not find the t-code. You can search notes regarding co-products to find several features and tips. If you use co-products, make sure you also use the program "MLCSS_KO88_TREATMENT" for the unusual error message that happens rarely.