Answer / rajesh

Co-products/By-products are products which are produced
alongwith the finished product.They are products which are
not intentionally produced but which we get when we are
producing the finished product (which is being produced
intentionally).

In some industries the products which are produced alongwith
the finished product do not have much value.These products
are By-products and the company would get a very small value
for these products as compared to the actual finished
products in the market.In such cases tracking/financial
details for such materials don't hold importance for the
company.

In some other industries the products which are produced
alongwith the finished product have considerable value
(sometimes 15 - 20% of the finished product).These products
are Co-products and get a good value for the company when
they are sold in the market.

Co-products are considered more important as compared to
By-products.We have to maintain a lot more data for
Co-products as compared to By-products.

Answer / k.jayachandrasekhar

CO-PRODUCT
------------
A co-product is a product that is produced in along with
other products. The system creates a separate order item in
the production order for each co-product. This means that
it is possible to display actual costs at co-product level.

Main product and co-product(s) are settled to different
receivers. Goods movements can be posted simultaneously for
all products manufactured in the order

BY-PRODUCT
----------
A by-product is a product that is produced along with other
products. The system doesnot create a separate order item
for each by-product.
The material valuation of a by-product is always based on
the price specified by price control in the material master.

Answer / someshwar g

In simple terms, the co-product and By-products are
secondary products produced along with Finishied Good. The
difference is

--> Co-Product has market/ sale value and can produce alone.

--> By-Product has Small/ No market/ sale value and it may
incurr some cost to dispose it. This cannot be produced
alone.

Answer / girish pawar

The ANSWER 1 by Rajesh is correct ,
I want to add some more example with this

Example of co product is During machining process of the
casing of pump , the brass shavings are produced . Theses
brass shvings are again sold back to refiner company who
sold you the brass ignots initially for forging or casting
process.

So Brass shavings can be a co product , as it is valued and
costed for the company .

And the example for the BY-product is the COOLING OIL
,which is used to cool the cutting blades of tool , which is
collected again and used once or twice again and set for
the proper disposal , but not sold outside , that is you
need not to settle cost , and no credits for sale .

So it can be by-product , it is valued but not costed,

Both have non-zero inventory valuation .

Answer / prabhu

Co-Product:Is the product produced along with the parent
material.For Co-Product seperate production order will be
created.
By_product:Is the product produced along with the parent
material.For Co-Product no seperate production order will be
created.

Answer / shib shaw

CO-PRODUCT
------------
Both co-productand by-product is a product that is
produced in along with Finish products. The basic diff
between Co nad By -product the value of by product will be
go to Main Product . in case of co product has some
separate cost to display.

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