Co product and By product product costing and settlement

Question

Dear Friends,
Here is my question
In Disrete manufacturing Product costing
when we design product costing  Business blue print
Instead of using co-product we wrongly map to co-product what will be the impact in costing point of view
can any one explain  demerits  in costing point of view 
Product costing is based on  Quanity structure
if my question is not clear, please do not hesitate to ask for more information
Thanks & Regards
Raj

Answer 1

Hi,
Please consider the following:
1. By-Product Scenario:
You need to maintain a costing BOM, to determine the standard price of the by-product. In the BOM of main product, you can use this by-product as a credit, the system will calculate the target cost based on the std cost from coting BOM.
If you dont maintain the byproduct in BOM of main product, and while confirming you are entering by-product, then the system will calculate production variance.
2. Co-Product Scenario:
You need to maintain Co-product tick in either MRP2 or Costing View and maintain the coproduct combination in the Joint Production. This is to be maintained for all the co-products. Once you are entering a production order, the system automatically uses this combination and brings in multiple lines in the production order for all the relevant materials (co-products).
When cost estimate is done, the system divides the cost for materials, activity costs, etc based on the weightage maintained in equivalent numbers.
Trust this helps.
Please assign pts, if useful.