1/18/2016

BYPRODUCT&COPRODUCT|SCN

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5Replies Latestreply:Mar2,20098:03PMbyPrasobhKarunakaran

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RAVIMISRA

Mar2,200911:31AM

BYPRODUCT&COPRODUCT
ThisquestionhasbeenAnswered.
Hi,
Ineedtounderstandwhatisthedifferencebetweenbyproductandcoproduct.Howdowe
differentiatetheminaBOM?Arethereanyotherconfigurationthatneedstobemaintainedtosetit
up.
Anypointershallbeappreciated.
Thanks,
RKM

CorrectAnswer
byJAYANTDBonMar2,200911:51AM
Inadditionaltotheabove,acoproductisproducedalongwithwithamainproductaandcarries
equalimportanceasmainproduct.Whereasabyproductisnotaplannedproductandisproduced
after
carryingouttheprocesseg.ethanolisabyproductofasugarindustry.Uneedtodefinebothin
BOM.

Inadditionaltotheabove,incaseofCoproductcostsaresettledwithaapportionmentstructure.In
caseofByproductthepriceofthisbyproductiscreditedtotheorderorthematerialstockaccount
oftheleadmaterialbeingmanufactured.CoProductaswellasbyproductaredefinedasBOM
components/Items.Bothofthemhavenegativequantities.(Notallnegativequantityitemsfall
underthesecategories!).WhenBOMiscreatedforFERT,youcanseeoneindicatorin
COMPONENTDETAILSscreenforcoproduct.Youneedtodefinethecoproductswiththisspecial
indicator.

Regards
JB

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NeerajBhardwaj Mar2,200911:45AM (inresponsetoRAVIMISRA)

Re:BYPRODUCT&COPRODUCT
Abyproductisasecondaryorincidentalproductderivingfromamanufacturingprocess,achemical
reaction,etc...

BothbyproductandcoproductareshownasnegativeitemsintheBOM...BUTbyproductisnotcost
relevant(sonocostrelevancyindicator)andCoproductiscostrelevant(costrelevancyindicatoris
ticked)..

Ifyoulookatapetrochemicalrefiningindustrytheirmaininputmaterialwillbe"Crudeoil"during
refiningtheyget"Petrol","Diesel","Kerosene","Naptha"&"Water"etc...

Sothewholeoftheproductioncostshouldnotgoto"Petrol"alone,asDiesel,Keroseneand"Naptha"
arealsosellable.Waterisnotsoldout,butisbeingusedinternalfortheoperation.

Inthisscenario"Petrol"."Diesel","Kerosene"and"Naptha"aredefinedascoproductsinthematerial
master.Andthecostwhichneedstobedistributedamongthemareintheratio30:30:20:20,sointhe
jointproductiondetailsweselecttheapportionmentstructure,andherewedefinetheequivalence

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numberbyenteringthematerialsandnumbersasrequiredbyusas30:30:20:20.

NowBOMisdefinedforthemainproduct"Petrol"andDiesel","Kerosene","Naptha"andWaterare
definedinvequantity.Herethedefinitionofwatergoesas"BiProduct".Crudeoilisdefinedas
componentin+vequantity.Nowduringordercosting/productcosting/settlementconsiderstheentire
costofproductionbasedonthecrudeoilcostandinfrastructurecostanditsplitsintotheratiodefined
intheequivalencenumber.

Neeraj

Editedby:NEERAJBHARDWAJonMar2,200911:43AM

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PrasobhKarunakaran Mar2,20096:51PM (inresponsetoNeerajBhardwaj)

Re:BYPRODUCT&COPRODUCT
Neeraj,

Iwouldappericiateifyoustopthepracticeofcopyanduseothersexplaination.

[MyExplainationin2007| CoproductandByProduct

Regards,
Prasobh

Like(0)

NeerajBhardwaj Mar2,20097:19PM (inresponsetoPrasobhKarunakaran)

Re:BYPRODUCT&COPRODUCT
Hi

Ijustaddedsomethinggoodtohelpthatguy...inthestartihadmyexplanationthenwheni
foundsomegoodexamplefromtheweb(notfromSDN)...thenIeditedmessage...Ijustsaw
throughyourlinkthatthisexplanationwasalreadypostedbyyou.

StillifyouthinkthatwasunethicalthenIwouldseetoitinmycomingpostings....

Neeraj

Like(0)

PrasobhKarunakaran Mar2,20098:03PM (inresponsetoNeerajBhardwaj)

Re:BYPRODUCT&COPRODUCT
Neeraj,

Idont,mindpeopleusingmyreferance,butafterusingityoualwaysadd"Asexplained
by",sothattheoriginalityisnotlost.

ThanksforReplying...

SorryRavitointrudeintoyourquestionthread.

Regards,
Prasobh

Happylearning!!!!

Like(0)

JAYANTDB Mar2,200911:51AM (inresponsetoRAVIMISRA)

CorrectAnswer Re:BYPRODUCT&COPRODUCT
Inadditionaltotheabove,acoproductisproducedalongwithwithamainproductaandcarriesequal
importanceasmainproduct.Whereasabyproductisnotaplannedproductandisproducedafter
carryingouttheprocesseg.ethanolisabyproductofasugarindustry.UneedtodefinebothinBOM.

Inadditionaltotheabove,incaseofCoproductcostsaresettledwithaapportionmentstructure.In
caseofByproductthepriceofthisbyproductiscreditedtotheorderorthematerialstockaccountof
theleadmaterialbeingmanufactured.CoProductaswellasbyproductaredefinedasBOM
components/Items.Bothofthemhavenegativequantities.(Notallnegativequantityitemsfallunder
thesecategories!).WhenBOMiscreatedforFERT,youcanseeoneindicatorinCOMPONENT

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BYPRODUCT&COPRODUCT|SCN
DETAILSscreenforcoproduct.Youneedtodefinethecoproductswiththisspecialindicator.

Regards
JB

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