What is fixed-price joint product in SAP FIN-BAC-INV - Inventory Accounting?

SAP Term: fixed-price joint product

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Material manufactured in a joint production process whose price is determined as follows: The fixed price is the price multiplied by the output quantity. It is subtracted from the total cost of the production process using the subtraction method or the net realizable-value method. The remaining amount is distributed to the joint products based on a predefined distribution method. The price of the joint product calculated in this way is used in costing. Materials are defined as fixed-price joint products in the material master.

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• Key Concepts: 
  Fixed-price joint product is a type of inventory accounting in SAP that allows for the joint production of multiple products from a single production process. This type of inventory accounting is used when the cost of producing multiple products is the same regardless of the quantity produced. 
  
  How to use it: 
  In SAP, fixed-price joint product is used to account for the cost of producing multiple products from a single production process. The cost of producing each product is calculated based on the total cost of the production process, and then divided among the products produced. This allows for accurate accounting of the cost of each product produced. 
  
  Tips & Tricks: 
  When using fixed-price joint product in SAP, it is important to ensure that all costs associated with the production process are accurately accounted for. This includes any overhead costs, such as labor and materials, as well as any other costs associated with the production process. 
  
  Related Information: 
  Fixed-price joint product is related to other types of inventory accounting in SAP, such as standard costing and actual costing. It is also related to other types of inventory management, such as ABC analysis and cycle counting. Understanding how these different types of inventory management and accounting work together can help ensure accurate and efficient inventory management in SAP.