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 Cost Distribution in the Case of Order Split Locate this document in the navigation structure


If an order is split, costs of the parent order already incurred must be transferred proportionally to the child order. This is achieved using a by-product that is an individually valuated material subject to a batch management requirement.

For this by-product, the goods receipt posting of the parent order is valuated with the proportional planned costs up to the time of the order split. As a result, the parent order is credited accordingly and at the time of the goods issue of the by-product to the child order, the latter is debited with the same costs.


The order split is integrated into Accounting.


You have created an individually valuated material that is subject to batch management:

  • You have set the indicator for batch management requirement in the work scheduling data of the material master record.

  • You have entered CH (batches) for the availability check in the MRP data of the material master record.

  • You have specified individual batch valuation ( Autom. Batch) as the valuation category in the accounting data of the material master record (see Batch Management documentation Split Valuation with Batches ).


The by-product is assigned to the split operation of the parent order as a component. For the by-product, the split quantity is specified as a negative quantity (see Co- and By-Products and Co- and By-Products: Prerequisites ).

If the order is split and a child order is created, a reservation is automatically created for the by-product with a valuated batch. The system uses the movement type 531 (receipt, by-product) for this purpose.

The system automatically assigns the by-product to the first operation of the child order as a stock component with a requirement quantity that corresponds to the split quantity and the batch that was generated at the time of the reservation.

To determine the proportional costs for the by-product in the parent order, the planned costs of all previous operations are determined and distributed according to the relationship of split quantity to operation quantity of the split order.

Example Example

End of the example.


Op. qty



10 pc

100 EUR


10 pc

200 EUR


10 pc

300 EUR


10 pc

400 EUR

Note Note

Total costs: 1000 EUR

An order split occurs at operation 30 with the split quantity of 4 pc.

The value for the by-product is determined as follows:

Costs (operation 10) + costs (operation 20) * split quantity/operation quantity = (100 EUR + 200 EUR) * 4 pc/10 pc = 120 EUR

End of the note.

Overheads and process costs are not assigned to an individual operation. These are calculated during the determination of the value of the by-product on the basis of the planned costs assigned to the previous operations.

Detailed Statement of Costs

You can calculate the value of the by-product if you display the detailed statement in the production order via   Goto   Costs   Display Detailed Statement (Itemization)   and choose the layout ISAP06 Operations (Grouped) .

Total the planned costs of the operations prior to the order split (include any overheads and process costs for these) and multiply the planned costs by the factor from split quantity/operation quantity.

Order Split at First Operation

A special situation is the order split at the first operation. Prior to the first operation, no costs will have been incurred. The by-product is therefore valuated with the value 0. To enable the planned costs to nevertheless be determined without errors, in this case the BOM item of the by-product is set to "not relevant to costing" on the detail screen of the BOM item.


The price of a by-product can also be specified or changed via the BAdI BADI_MAN_ORDER_SPLIT_VAL.

  • You can use the SET_PRICE method to specify a price instead of performing the calculation described above.

  • You can use the SET_PRICE_AFTER_CALCULATION method to change the calculated price, thus taking a lower product quality into account, for example. You can also prevent the order status LSPL (locked through splitting) here, by specifying a price in the event of a faulty price determination (e.g. the price is zero even though the first operation was not split).