What is the difference between By-product and Co-product and how do you differentiate them in a BOM?
- Co-product costs are settled with a apportionment structure (shared with all products). In By-product the price is credited to the order or the material stock account of the lead material being manufactured.
- Co-Product as well as by-product are defined as BOM Components/Items. Both of them have negative quantities. ( Not all negative quantity items fall under these categories!).When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product.You need to define the co-products with this special indicator .
- Co-product must have costing value. Must have a settlement rule and mandatory with main product. By-product has no costing and settlement rule.bulk product MRP run can not consider the bulk product.
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