Byproduct from subcontracting process

[former_member317095]

Hi Gurus,

My scenario is like I am receiving two materials from a raw material during subcontracting material, so I have gone through this discussion from scn (

And I have setup the process like the other material as a by product. But I am having difficulties in price reflecting in the by product.

How I setup the procedure in SAP

1. Created Subcontracting Info-record with price 20 for both materials

2. Created subcontracting PO with BOM maintained inside.

3. Main product = 50 kg, Raw material= 100 kg (Price= 500), by product = -50kg

4. Good Issued to vendor

And when I received the material as 40 kg and by product as 40 kg. But when i check the price in MR21 the price is 1320 for main and no price for the byproduct.

I need the price of the raw material to be equally distributed to the main material and the byproduct with the subcontracting charges

Can you please explain if I have done something wrong in this.

Regards,

BiTa

[madhava_hn]

Hi BiTa

Raw materials provided = Finished product + Byproduct (or scrap) --------> Subcontracting process.

But subcontracting  purchasing info record (for main product) will have the amount to be paid for assembling the main product. This price is not related to raw material or byproduct.

I don’t think we can link this amount to byproduct or scrap generated during the process.

Say vendor service charge is Rs.1000 for assembling the main product. You are receiving the main product (101) and also you are receiving byproduct/scrap (545). Now if you divide Rs.1000 which is service charge, how this can be justified ?, because vendor is returning byproduct/scrap to you back…!! You should pay complete Rs.1000 to vendor for his work on main product.

After GR, how you are valuating the byproduct/scrap is left to your business.

Regards,

Madhava

[JL23]

The value of the by-product reduces the value of the main material, see http://help.sap.com/saphelp_46c/helpdata/en/4d/2b90a343ad11d189410000e829fbbd/content.htm

[former_member317095]

Hi Madhava,

In my case I am getting two finished materials and scrap.

Raw material= finished product 1 + Finished product 2 + Scrap

Regards,

BiTa

[madhava_hn]

Thanks Jurgen, noted it.

But in 3rd point it says "In the material document, you can identify the by-product items from their movement type 544.".  But byproducts are posted with 545 right ?

Regards,

Madhava

[JL23]

looks like a typo in this documentation, 545 is right, also described in Inventory Management: New Movement Types for 3.0B