SAP Product Costing-Joint/CO-Product and By Product Process
Product Costing with-"Joint/CO-Product & BY Product Costing" AND "Special Procurement" (Plant to Plant) Costing
SAP Product Costing-Joint/CO-Product and By Product Process free download
Product Costing with-"Joint/CO-Product & BY Product Costing" AND "Special Procurement" (Plant to Plant) Costing
CO-Product/ Joint Production, By-Product Costing Process, and Special Procurement Process:
CO-Product/ Joint Production
In scenarios where multiple main products (not by-products) emerge from one production order, each product is treated with equal importance. These are termed CO-Products.
A. CO Product Costing: Complete Live Scenario
1. Define Source Structure:
Design the way costs will be allocated among the CO-products.
2. Material Master Creation:
Two or more main materials (CO-products) are created.
3. BOM Creation:
Includes all raw materials required for the production, considering both CO-products.
4. Routing:
Steps involved in the manufacturing process.
5. Equivalence Numbers Maintenance:
In the material master, determine the proportion in which the joint costs will be distributed among CO-products.
6. Standard Cost Estimation (CK11N & CK24):
Calculate the standard cost for both CO-products.
7. Production Order Creation:
A production order is created capturing the manufacturing details of the CO-products.
8. Production Observations:
Observe variances, production efficiencies, and other aspects during the manufacturing process.
9-10. Production Completion and Accounting:
The completion of the order involves goods issue, activity confirmation, and goods receipt. The accounting entry captures the value of produced CO-products.
11. Preliminary Settlement:
Initial distribution of costs among CO-products based on equivalence numbers.
12-13. Variance Calculation and Settlement:
Any variance between planned and actual costs is calculated and settled among the CO-products.
By-Product Costing Process
By-products are secondary products that arise during the production of a main product. They have some value but are secondary to the main product.
1-3. G/L Account Creation and Configuration:
A dedicated account for capturing the value of by-products. This is configured in OKTZ and OBYC settings.
4-6. Material and Production Design:
Create a main material and a by-product in the material master. Design the BOM and routing accordingly.
7. Standard Cost Estimation (CK11N & CK24):
Determine the standard cost for the main product.
8-10. Production and Accounting:
Execute the production cycle, record the emergence of the by-product, and capture the corresponding accounting entry.
Special Procurement Process
This process is used for transferring products from one plant (like manufacturing) to another (like sales or depot).
1. New Plant Creation:
A new plant (typically a sales or depot plant) is created by copying configurations from an existing plant.
2. Special Procurement Key Configuration:
For the depot plant, define how the procurement will take place (typically from another plant).
3. Standard Costing Estimation:
Determine the standard cost of the material in both the manufacturing and depot plants.
4. Transfer Posting:
Materials are transferred from the manufacturing plant to the depot/sales plant. This reflects a change in stock and may or may not have financial implications based on the configuration.
These processes in SAP ensure that production scenarios, whether they involve co-products, by-products, or special procurement scenarios, are captured in detail, enabling accurate costing and financial reporting.
