For handling byproducts in subcontracting, they are
maintained in BOM with negative sign. but can anybody please
tell - byproducts are defined with which material type ?

Answer Posted / desikan

A buy product is identified in the BOM by way of negative
sign. It is applicable for both ROH & HALB types. When you
define the material code with -ve sign n the bom, it
indicates the balance raw material to be returned and can
be used for different finished material. Eg. A Big Metal
Sheet is sent to cut one small shape. The remaining can be
used to cut different shapes based on need.

It is handled thro' 545 movement type. When a GR is made,
system will create 101 against finished material, 543
against material consumption, 545 for the remaining
material.

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