In SAP, by products and co products are two types of outputs that can be produced from a manufacturing process. By products are secondary products that have a low value compared to the main product, while co products are products that have a similar or higher value than the main product. By products and co products can be handled differently in SAP depending on the business scenario and the accounting method. For example, by products can be either inventoried or deducted from the cost of production, while co products can be either allocated a percentage of the cost of production or valued separately using a sales order or a production order.
This document provides an overview of the concepts of by-products and co-products in SAP Production Planning and illustrates the configuration settings and transaction postings involved. It highlights the key differences between by-products, which have low value relative to the main product, and co-products, which have significant value.
The key sections covered are:
- Definitions of by-products and co-products
- By-product configuration and postings for production order creation, goods receipts, and settlement showing variance allocation to main product
- Co-product configuration settings like co-product indicator in MRP, appointment structure, settlement profile
- Co-product postings for production order with variance allocation based on appointment structure
- Relevant configuration for appointment structure like source structure, settlement profile, order type assignment
In summary, the document demonstrates by-product and co-product scenarios in SAP PP through configurations and postings, focusing on variance allocation as a key differentiator.