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Former Member
Nov 07, 2012 at 02:59 PM

Costing Run for Co-Products

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Hi Experts,

Appreciate your advice re costing of co-products.

We are producing FG material A (primary product) and B is also produced as a co-product. The costs are apportioned 60:40 (A:B).

In the material master of Mat A, we have switched on co-product indicator and maintained an apportionment structure based on the above basis. In the material master of Mat B, we have also switched on the co-product indicator but no apportionment structure has been maintained.

In the bill of material for Mat A, we maintained Mat B as a component with negative quantity and item category L. We have also switched on co-product for B in the Basic data tab.

Next I created a costing run and here's the problem. In the selection step, I only selected material A. I noticed that during BoM explosion (step 2), Material B is NOT included in the explosion. The costing is done correctly for Mat A. But the Marking step also does not include material B.

Is the system behavior correct? It seems strange to me that co-product is not automatically exploded in the costing run.

Thank you for your advice.

TL