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By-Products in Production Orders
Description
In Release 3.0, you can enter by-products in a production order.
The indicator 'By-product' must be active in the
master record of the material which is to be produced as a by-product (2nd MRP
screen).
In the bill of material of the main material,
the by-product must be characterized as a by-product (general data screen of
the item).
A production order is created for the main
product. The system creates a separate order item for each by-product.
The costs for the order are assigned to the
order header and distributed to the individual by-products using equivalence
numbers.
In the material master record of the main
material, you determine how the total costs are distributed to the individual
by-products using a distribution sheet (Extras -> Special plant details
-> By-product production) and, if necessary, an original cost element
structure (see below).
On the basis of these entries, the system
creates the following during order creation:
- a settlement rule which divides up the total costs between the by-products
(order items)
- a settlement rule for each by-product which assigns the distributed costs
to the stock
Only the actual costs can currently be
distributed. A function which distributes the planned costs of the order is
being planned.
Goods movements for by-products are entered via
the menu options Logistics -> Materials management ->
Inventory management and then Goods movement -> Goods
receipt -> For order.
Confirmation with automatic goods receipt is not
currently possible for by-products.
Change system parameters in customizing
An original cost element structure is used to divide up the equivalences in
the distribution sheet according to cost element groups.
Without an original cost element structure, you must keep the division of
costs between the main product and the by-product(s) equal for all cost
elements.
Example of an equivalence number without an original cost element
structure
| Original allocation |
Main product |
|
: |
By-product |
| Production costs |
|
|
2 |
|
|
: |
|
1 |
| Material costs |
|
|
2 |
|
|
: |
|
1 |
| Overheads |
|
|
2 |
|
|
: |
|
1 |
|
Using the original cost element structure you can vary the division of the
costs between the main product and the by-product(s) depending on the cost
element group.
Example of an equivalence number with an original cost element
structure
| Original allocation |
Main product |
|
: |
By-product |
| Production costs |
|
|
1 |
|
|
: |
|
4 |
| Material costs |
|
|
2 |
|
|
: |
|
1 |
| Overheads |
|
|
5 |
|
|
: |
|
3 |
|
If you want to use an original cost element structure, you must
1. define an original cost element
structure in Customizing,
2. define a distribution sheet in the
material master record of the main product (Extras -> Special plant
allocation -> Cost distribution) which refers to the original cost element
structure.