How does Roll up of cost of scrapped material to the product happens

Dear Friends,
We are using ECC6.00 (EHP4) with CO module also implemented. in QM module we use notification type Q3 to scrap material which is rejected in the production order. Using transaction CO11N, we book scrap in the order and using the function module in the notification we carry out reverse order qty and scrap which is nothing but 262 and 551 combined.
To be more specific if i create a notification for material M1 then when i use the function module (action box) system will reverse the material (262) from the production order and the scrap using 551 movement.
The variance is booked in the order. Now that for some of the materials users have done 551 alone without reversing the material from the production order. According to the 262 and 551, the same is configured so that the value of scrap occuring in the production order should inflate the product cost during the costing run (roll up of the cost)
Now user wants to be explained on the differences in the cost between both the type of scrapping done (262&551)and 551 alone. i.e., for periods where 262 and 551, the material cost should have been increased and for the other 551 posting there should not be any effect of the material cost.
Kindly tell me how this can be explained. Also provide the complete steps for carrying out the costing run to do actual costing and standard costing run.
Experts help will be very useful.
Regards,
M.M

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How does Roll up of cost of scrapped material to the product happens

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