What is joint production in SAP?

Joint production is a production process that yields two or more products simultaneously. A production process can yield co-products and by-products (residual materials). The costs for such products can be calculated by means of a non-order-related material cost estimate.

What is Joint production process?

Joint processes are production processes in which the creation of one product also creates other products. It is a process in which one input yields multiple outputs. Joint production processes are common in the agriculture industry, the food manufacturing industry, and the chemical industry.

Which is an example of joint production?

In short, we can say, when two or more products of equal importance are simultaneously produced, then they are known as joint products. Example: In oil industry kerosene, gasoline, fuel oil, lubricants etc. are all produced from the same product, crude petroleum.

What is a co product in SAP?

Co-Product: Co-product is a product, we getting this product while manufacturing finished material or main material. Same material might be used in other material manufacturing process. By-product By-product is a product, we getting this product while manufacturing finished material or main material.

What do you mean by joint products?

Joint products are two or more products that are generated within a single production process. They can’t be produced separately and will incur undifferentiated joint costs. Take charge of your invoicing with SumUp Invoices. Joint products can’t be separated until a specific ‘split-off point’ or ‘separation point’.

What is the difference between joint product and byproduct?

When the production of two or more products of similar value, are made together with same input and process, is called joint product. The term by-product means a product which is incidentally produced, during the processing operation of another product. Joint products have same economic value.

What is the difference between joint costs and common costs?

Joint costs arise when the same resource results in two or more different products at the same time. Common costs are harder to identify, but include all costs that keep the business running but which cannot be attributed to one product, department, project, territory or other specific cost center.

What is joint product and by-product with examples?

Here, lumber and firewood are joint products whereas sawdust is a by-product due to its insignificant value. Therefore, all of the joint costs are likely to be allocated to lumber and firewood. All of the three products may be sold directly or further processed.

What do you mean by joint product?

What are features of joint products?

Following are the characteristics of joint products:

  • The value of all the joint products is more or less the same.
  • Such products don’t necessarily require processing after a point of separation.
  • Such products need simultaneous standard processing.
  • The raw material or materials they use are the same.

What are the features of joint product?

What is joint cost example?

A joint cost is a kind of common cost that occurs after a raw product, such as a sunflower crop, undergoes two separate production processes, reports Strategic CFO. For example, the cost of fertilizing and harvesting sunflowers qualifies as a common cost.