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SAP Exam C_TS422_2023 Topic 3 Question 11 Discussion

Actual exam question for SAP's C_TS422_2023 exam
Question #: 11
Topic #: 3
[All C_TS422_2023 Questions]

What is the difference between co-products and by-products?

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Suggested Answer: D

The difference between co-products and by-products is mainly in how they are accounted for in the production process. Co-products are products that have a relatively high sales value and are produced simultaneously from the same production process. By-products are products that have a relatively low sales value and are produced as a side effect of the main product. The following points explain the difference between them:

Only co-products are identified by a special item category in the bill of material (BOM). This item category is L (Co-product) and it indicates that the component is a co-product that shares the joint costs of the production process with the main product and other co-products. By-products do not have a special item category in the BOM.They are usually entered with a negative quantity and a negative item category, such as N (By-product)12.

Only co-products can be manufactured in isolation from the main product. This means that co-products can be produced independently from the main product if there is a demand for them. By-products cannot be manufactured in isolation from the main product.They are always produced as a result of the main product3.

Only co-products have a zero inventory valuation. This means that co-products do not have a price in the material master and their inventory value is calculated based on the apportionment of the joint costs of the production process. By-products have a fixed inventory valuation based on the price specified by the price control in the material master.Their inventory value does not depend on the production process12.

Only co-products appear in the process or production order settlement rule. This means that co-products are settled to different receivers, such as sales orders, cost centers, or profitability segments, based on the apportionment structure defined in the material master of the leading co-product. By-products do not appear in the settlement rule.They are credited to the production order and reduce the total costs of the process12.


1: SAP Help Portal: Co- and By-Products

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance

3: SAP Co-Products and By-Products Tutorial - Free SAP PP Training - ERProof3

: Co-Product and By-product in Production order | SAP Blogs2

by Heidy at Sep 12, 2024, 09:28 AM

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Melinda
7 months ago
Wait, are we talking about co-products or by-products? I'm getting my wires crossed. Maybe I should stick to counting inventory instead of answering trick questions!
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Jacquelyne
6 months ago
It's all about the intention behind the production. Co-products serve a purpose, by-products are just extra.
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Elvera
6 months ago
Just remember, co-products are intentionally produced, while by-products are secondary.
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Alaine
6 months ago
Don't worry, it can be confusing. Co-products are usually more valuable than by-products.
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Katie
7 months ago
Co-products are planned outputs of a process, while by-products are incidental outputs.
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Emerson
7 months ago
I don't know, this question is making my head spin. Is there an option for 'all of the above' or 'none of the above'? Asking for a friend.
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Rolf
7 months ago
Actually, I think only co-products appear in the process or production order settlement rule.
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Jutta
8 months ago
A zero inventory valuation for co-products? That's a new one to me. I'll go with option A - it seems the most straightforward explanation.
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Emily
8 months ago
Hmm, I'm not sure about the zero inventory valuation for co-products. Seems like an odd distinction. I'm leaning towards option A.
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Ty
6 months ago
Co-products are sold at a higher price, while by-products are sold at a lower price.
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Twanna
7 months ago
Co-products have equal importance, while by-products are of lesser importance.
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Shalon
7 months ago
Co-products have a shared production cost, while by-products have a separate production cost.
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Devora
7 months ago
Co-products are jointly produced in a single process, while by-products are secondary to the main product.
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Lilli
8 months ago
I disagree, I believe only co-products can be manufactured in isolation from the main product.
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Anglea
8 months ago
I think the difference is that co-products are intentionally produced alongside the main product, while by-products are unintended. Option A seems to capture this well.
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Beata
7 months ago
By-products are unintended.
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Eladia
7 months ago
Co-products are intentionally produced alongside the main product.
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Nada
8 months ago
I think the difference is that only co-products are identified by a special item category in the BOM.
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