Answer / venky

A co-product is produced alongwith with a main product aand
carries equal importance as main product.Whereas a by-
product is not a planned product and is produced after
carrying out the process eg. ethanol is a byproduct of a
sugar industry.U need to define both in BOM.

Answer / sandip deshmukh

By-Product : By-Product is a Product Created While Making
Production
1. The System Does not create a separate order item for each
by-Product

2. The Material Valuation of a by-Product is always based on
the price, specified by the price control in the material master
3. The by-product must be listed as an item in the bill of
material of the main product .The bill of material item must
have a negative quantity (for example ‘1 -’)

4. Byproduct has only the -ve quantity in BOM component, it
does not go for joint production costing.

5. Movement type 531 to post the By-Product during
Confirmation.

6. Settlement of cost is done to the header of the material

Co-Product :A co-product is a product that is produced in
conjunction with other products. The system creates a
separate order item in the production order for each
co-product. As a result, it is possible to display actual
costs at co-product

Settings: 1.) You have to activate check box in MRP2 view
for co product.

2.) For co products we also need to define the apportionate
structure with equivalence number for costing purpose, this
will be done in "Joint Production" details in the same view.
(30:30:20:20)

Prerequisite for the main product:

1.) The indicator Co-product must be activated in the
material master of the main product (MRP area)

Prerequisites for a co-product:

1.) The indicator Co-product must be activated in the
material master of the co-product (MRP area)
The co-product must be listed as an item in the bill of
material of the main product

2.) On the Basic data tab page of the BOM item, the
indicator Co-product must be activated in the field group
General data

Answer / amit agrawal

A co-product is specifically planned to take advantage of
process contraints. A good example is casting/foundry
industry,where mold size is fixed. If your mold box size is
10 X 10 ft and your casting size is 5 X 5 ft, you will pour
less metal, get less Kg of output from your molding line,
and so on. Alternatively, you can design your mold in such
a way that you produce the main casting in one portion, and
also use the same mold to produce another casting e.g.
small bearing, thus improving the mold utilisation.Since
two products are produced at the same time using same work
centre, the later is called as co-product.And hence the
costs are allocated to the two in some specific ratio (e.g.
80-20) and settlement profile is created accordingly.
By-product is an undesired item arising out of the process
of manufacturing,and generally referred to as scrap.

Answer / guest

In case of Co-product costs are settled with a apportionment
structure. In case of By-product the price of this by-product
is credited to the order or the material stock account of
the lead material being manufactured. Co-Product as well as
by-product are defined as BOM Components/Items. Both of them
have negative quantities. ( Not all negative quantity items
fall under these categories!). When BOM is created for FERT
, you can see one indicator in COMPONENT DETAILS screen for
co-product. You need to define the co-products with this
special indicator .

Answer / fikadu

joint product has a high price value whereas by-product has
a low price value.

co-products are 2 or more products simultaneously produced.
whereas by-product is recovered incidentally.

Answer / prashant

Co product means product is manufacturer with actual product
And by product means product is manufactured with product

Answer / govind mandhare

Dear Questioners,
Please refer answer of Mr. Amit Agrawal sir,
This is the most sutable & real answer for this question,
It will satisfied your all requirements.

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