How To Fix CO697 - The settlement rules are recreated because of manufacture of co-products

SAP Error Message - Details

• Message type: E = Error

• Message class: CO - PPC order processing messages

• Message number: 697

• Message text: The settlement rules are recreated because of manufacture of co-products

What causes this issue?

You add a material to the order and mark it as a co-product.
The order does not yet have any co-products.

System Response

In manufacturing of co-products settlement of costs takes place on two
levels: from the order to the order items and from each item to the
material.
The settlement rules for the header are deleted.
A settlement rule is generated for every order item.
A settlement rule is generated for every order item on the material.

How to fix this error?

You should check the settlement rules for the header before you add the
co-product and if necessary adapt the settlement rules automatically
afterwards.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message CO697 - The settlement rules are recreated because of manufacture of co-products ?

  The SAP error message CO697 indicates that the settlement rules for a production order or process order are being recreated due to the manufacturing of co-products. This typically occurs in scenarios where a production process generates multiple products simultaneously, and the system needs to adjust the settlement rules accordingly.
  Cause:
  
  Co-Product Production: The error arises when a production order is set up to produce co-products, and the system detects that the existing settlement rules do not align with the requirements for co-product settlement.
  Settlement Rules Configuration: The configuration of the settlement rules may not be properly set up to handle co-products, leading to the need for the system to recreate them.
  Changes in Production Data: If there are changes in the production data (e.g., quantities, co-product definitions), the system may need to adjust the settlement rules to reflect these changes.
  
  Solution:
  
  Review Settlement Rules: Check the existing settlement rules for the production order. Ensure that they are correctly defined to accommodate co-products.
  Adjust Co-Product Settings: Verify the settings for co-products in the material master and the production order. Ensure that the co-products are correctly defined and that their respective percentages and values are set up properly.
  Recreate Settlement Rules Manually: If necessary, you can manually recreate or adjust the settlement rules in the production order. This can be done through transaction codes like CO02 (Change Production Order) or CO03 (Display Production Order).
  Check Configuration: Ensure that the configuration for co-products in the controlling area is set up correctly. This includes checking the settings in the controlling module (CO) and the production planning module (PP).
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling co-products and settlement rules.
  
  Related Information:
  
  Co-Products in SAP: Co-products are products that are produced simultaneously in a manufacturing process. They often share resources and costs, which can complicate the settlement process.
  Settlement in SAP: Settlement in SAP refers to the process of allocating costs incurred during production to the appropriate cost objects (e.g., finished goods, co-products).
  Transaction Codes: Familiarize yourself with relevant transaction codes such as CO02 (Change Production Order), CO03 (Display Production Order), and KKAO (Order Settlement) for managing production orders and settlements.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP CO and PP modules for further assistance.