SAP PP & QM QUESTIONS

[vijayabhaskar_papana]

What is the difference b/w byproducts and Co products?

[Caetano]

Hello Vijay

First of all, when opening a question in the SAP Communities, please try to provide a title to your question that describes your issue in more detail, rather than a generic title like this one.

In addition, I'm quite sure that this question has been already asked before and I even found some blogs talking about this topic. Therefore, please do some research on your own before opening a question:

https://blogs.sap.com/2014/06/13/co-product-vs-by-product-introduction/
https://blogs.sap.com/2014/11/17/co-product-and-by-product-in-production-order/

Regards,
Caetano

[former_member614223]

Byproduct : we can say it as it is not planned product it can be made from scrap material (ex. ethanol is byproduct of sugarcane. so the by product has no costing and settlement rule

co-product : It is made up along with finished product. ex. milk industry

[Abinathsiva]

Hi,

Co-Product: Valuable material generated during a production run together with other valuable materials

By-Product: Product that is produced incidental to the production process of other products. You enter by-products in the material list of a primary product or process material

Follow the link for further details Co product Vs. By product

[vijayabhaskar_papana]

Thank you sir

[DominikTylczyn]

Hello vijayabhaskar.papana

First let's look at SAP Glossary:

• co-product
• by-product

The definitions themselves might not be very clear as co-product and by-product are quite similar. They are both produced together with the main product of a production order. Also both are visible on production components screen with negative quantities.

Both are receipt from a production order together with the main product. However they are receipt with different movement types:

• by-product - movement type 262 (notice the movement type is a reversal of component consumption 261 movement type)
• co-product - movement type 101 (notice the movement type is the same as for receipt of the main product)

Technically by-product is a component with a negative quantity. Whereas co-product is another item of a production order next to the main product. See table AFPO.

The main difference is between by- and co-product is how the production costs are handled. By-product reduces the production cost. Whereas co-product is a recipient of production costs.

Real life example of by- and co-product would be in a wood log cutting process, say you cut a log into a beam and two planks; during the process some sawdust is also produced. Then the beam would be your main product, the planks would be your co-products and sawdust would be your by-product.

Best regards

Dominik Tylczynski

[vijayabhaskar_papana]

Thanking you sir