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Former Member

Co-Products Cost Distribution based on actual volums

Hi All;

I would like to know how is the best way to distribute the costs of a process order between the product and his co-products based on volums produced of each product/co-product. It was requested that the unit cost of product and co-product should be the same. We know that using equivalence numbers updated in the material master we can split the costs of process order based on this equivalence numbers. The problem is that the actual quantities set by the process order can be different than the equivalence numbers pre-defined. How can I consider the actual volums of the process order to costing co-products?

Another point related to co-products is: Is it possible to set some production operation as relevant for one co-product and not relevant for another one?

Thanks in advance!

Gustavo

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    author's profile photo Former Member
    Former Member
    Posted on Dec 11, 2010 at 04:14 AM

    hi..

    you ar right, it is pre-defined in material master. actual ratio may be different from pre-defined ratio. But every period end before you run period end activities, you may change the equvalant ratio based on your actual production of main product and co-product. then you run your period end closing.

    i could not get your second part pl give some more details.

    kkumar

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  • Posted on Dec 13, 2010 at 09:59 AM

    Hi Gustavo,

    Settlement Rule PP6 for the order settlement would do the job.

    Find the details in a previous forum discussion with my answers:

    [co-products-and-tracing-factors]

    best regards,

    Udo

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 14, 2010 at 12:16 PM

    Hi Udo! Thanks for your information.

    So, the solution to distribute the costs between products and co-products of the same order is using settlement PP6 and update the BADI cost_split in material to distribute the costs from lower level. Am I right?

    Do you know the name of business function that enable the settlement PP6? We have the mining solution but the settlement PP6 is not enabled.

    Thanks

    Best regards,

    Gustavo

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 14, 2010 at 05:34 PM

    Seems that it is the way to solve our issue. We work for a mining company but also need a SAP MIll function. We have not tested yet, but it can help us to find the customizing to proceed.

    Thanks!

    Edited by: gumourao on Dec 14, 2010 6:35 PM

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