Co-Product and By-product & Recursive in SAP PP

This document is for a basic understanding of Co-Product and By-Product & BOM-recursive in the
Manufacturing industry. Industry Type: Chemical, Pharma etc.

Product manufacturing in industry same time other products that are usually manufactured together
using one production order. We called that Co product and By-product

A C

B is the main product and C & D are desirable secondary goods that are produced simultaneously
with the main product during the manufacturing process but not necessarily the raw material and
can be sold & reused profitably.

The Co-Product: Co-product is a product; we get this product while manufacturing the main
material. The Co-product might be used in other material manufacturing processes and can be sold.

• The main product and co-product(s) are settled to different receivers.

• Goods movements can be posted simultaneously for all product manufacturing in the order.
• 101 Movement type for CO product
• In Co-product only automatic good receipt happens with activating “GR for co-product” in
‘Parameters for order confirmation’.

The by-product is a product, we get this product while manufacturing the main material and can be
used in other material manufacturing processes and can be reused in the same plant. The by-
product is mostly an impure product. We recycle it to increase its purity. The material valuation of a
by-product is always based on the price specified by price control in the material master.

• 531 movement type for by-product.

• Used in the same process without recursive.
• We can activate backflush for by-products in MRP2 view.

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 B Store & Sale
101

A C Store & Sale

261 101

261

Recycle

531

Store &
Recycle

261

Use in other material manufacturing

1. Co- Product-

Prerequisite for Co-product

1. Activate the check box in the MRP2 view for co-product.

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2. Maintain the setting in BOM with a negative quantity (Ex. -1) and double click on the item
number of co-product which will take you to step 3.

3. In Bom Item detail check mark Co product

4. Automatic goods movement in Co product.

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2. By-Product

Prerequisite for by-product

1. when we are using it in other material manufacturing processes and not recycling it in the
same process.

• In BOM maintained a negative quantity, then the system automatically will pick as a by-
product.

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• Crete planned order and converted to production order
• At the time of Production order confirmation, the system automatically posts as By-Product
with raw materials.
• By-Product Movement type 531, See below picture

2. when we are using it recycling in the same process.

• In BOM maintained a positive quantity with the same material number, then the system
automatically will pick a raw material.

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 • At the time of Production order confirmation, the system automatically posts both as By-
Product and as raw materials but in storage, quantity should be available.

3. BOM is recursive

While creating BOM, if the item of a BOM is the same as which is Header of the BOM or if the
product contains a component with the same object number as the superior assembly.

Example – Main product B or co-product C are recycled in the same process.

1. Maintain the setting in BOM with a Positive quantity with the same material number.
2. Double click on the item number which will take you to a new screen and there is a
checkmark “recurs allowed”.

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 261

B Store & Sale or

101 Reuse small qty

A C Store & Sale or

Reuse small qty
261 101

261

Step-1

Step -2

Save

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 • Create a Production order and release & post before that checked stock of material.

I hope this document is helpful to everyone

Request all expert suggestions and guide if anything wrong in this document

Thanks & Regards

Poonam Thalor

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