This section describes how you plan the usage and production of materials if you manufacture co-products. It mainly deals with the special requirements of a manufacturing process in which several materials are manufactured and debited with part of the overall production costs.

If you only produce one primary product and sometimes one or more by-products in your manufacturing process, use process variant Material Data Editing instead.

1. Depending on how production is initiated, you assign the following material to the master recipe header:
   

Production initiated by	Material you assign to the recipe
Demand of a specific co-product	The required co-product
Availability of ingredients and capacities	A process material

 



In material requirements planning, planned orders can only be created automatically for the header material assigned here.

2. By creating production versions for the header material, you determine the alternative BOM to be used for production with this recipe.

You define a validity period and lot-size range for each production version.
If required, you define an apportionment structure in the production version, which is used as the basis for order settlement.

3. If necessary, you define additional production versions for co-products that have not been assigned to the recipe at header level.
   In these production versions, you refer to the header material’s production version to be used to manufacture the co-product.
4. You edit the alternative BOMs that you have assigned to your recipe in the production versions.

You determine the material components and quantities that are required for production.

You define co-products that have not been assigned to the recipe at header level as BOM components with a negative quantity.

5. You assign the material components of your alternative BOMs to the operations and phases of the recipe that require them for production.

Depending on the item category of the component you have assigned, you enter further specifications on how the component is to be processed (for example, backflushing of stock items).

6. You check and, if necessary, correct the apportionment structures that have been defined for the header material and are used to distribute production cost to the individual co-products.
7. You define the formulas the system uses to calculate material, operation, and phase quantities.

Depending on whether you have activated the SAP enhancement for material quantity calculation in Customizing, you define the formulas in the R/3 System or in an external application.

Depending on where the results are valid, you save them as follows:


If calculated quantities are valid	You
For all alternative BOM usages	Copy the results to the BOM.
For the current production version only	Only save the formulas.

 

8. You save the master recipe.