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Co-Products Cost Distribution based on actual volums

Former Member
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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

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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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

Answers (3)

Answers (3)

Former Member
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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

Former Member
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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

udo_werner
Product and Topic Expert
Product and Topic Expert
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Hi Gustavo,

like I explained to Ross in the other thread:

>We recently packaged a bundle of fuctions of the mill industries that are relevant also for the mining industry named Business >Function u201CMill Functions for Miningu201D or technical /SAPMP/GEN_MILLFUNC.

You could add that subset of functional enhancements for the mill products industry to a mining solution. Settlement rule PP6 will be contained in that.

http://wbhelp.sap.com/ERP2005_EHP_04/helpdata/EN/75/A22ED6785B4029B74E29DAAB479956/frameset.htm

After the upgrade you will be able to switch on /SAPMP/GEN_MILLFUNC in SFW5.

see also [note 1165438|https://service.sap.com/sap/support/notes/1165438]

best regards,

Udo

udo_werner
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Gustavo,

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

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

[]

best regards,

Udo