If no apportionment structure has been defined for a leading co-product or process material, an error message is issued.
In the apportionment structure, you can use equivalence numbers to control how the costs of the entire manufacturing process are apportioned for the co-products in percentage in case of multiple Co product. The apportionment structure is defined in the costing view of the material master for the leading co-product click on joint production or in MRP2 view, Click on joint production and assigned apportionment structure. You can calculate the cost of goods manufactured for co-products by using an apportionment structure to allocate the total costs of the manufacturing process to the individual products involved. In Co product no automatic good receipt happen. 
In BOM, item of the components detail select the CO product, if you not select the Co product in Item detail system consider as By Product. In BOM maintained negative quantity for component. In Material master MRP View 2 select the CO product. If you don’t want to calculate the cost of the By-product then remove the Costing relevancy from BOM Item detail. The costs of the by-products thus represent a reduction in the costs of the primary product. The costs of by-products are calculated with the net realizable-value method. If the by-product is indicated as being relevant to costing in BOM, the total cost of the process is reduced by the costs of the by-products. By-Product Movement type 531, See below picture. At time Production order confirmation, system automatically post as By-Product,. Crete planned order and converted to production order. In BOM maintained negative quantity, Then system automatically will pick as by product. Goods movements can be posted simultaneously for all product manufacturing in the order. Main product and co-product(s) are settled to different receivers. The material valuation of a by-product is always based on the price specified by price control in the material master.Ĭreating a production order to manufacture co-products has the following advantages: Same material might be used in other material manufacturing processīy-product By-product is a product, we getting this product while manufacturing finished material or main material. We called that Co product and By productĬo-Product: Co-product is a product, we getting this product while manufacturing finished material or main material. Product manufacturing in industry same time other products that are usually manufactured together using one production order. I wrote this document for basic understanding of Co-Product and By-Product in Production order.
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