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In sugar industry... baggases is produced. is it considered
as by-product or co-product? n why by-product n why not co-
product, vice versa, plz give brief explaination?
see baggase, we never sale it. It is used for the power
generation. plz suggest me as early as possible.
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Answer / amit kataria
A co-product have Non-zero inventory valuation ,cost
settlement is required and appears in header settlement
rule.
A By-product have Non-zero inventory valuation,cost
settlement is not required and do not appear in header
settlement rule.
I think this will clear ur doubt.
It should be considered as by product.
Amit Kataria
SAP PP CONSULTANT
9212689970
| Is This Answer Correct ? | 14 Yes | 0 No |
Answer / hima bindu
A Co-Product is considered as Value stock, also this we can produce individually by creating separate production for this.
Where as for By-Product we don't create separate production order, because by-product will get generated when we are producing the mail material.
In your case sugar is the header material which is producing, bagasse is the by-product coming out while producing the sugar. This is reason we are defining as By-product instead of Co-Product.
| Is This Answer Correct ? | 0 Yes | 0 No |
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