Dear Experts,
There is a scenario where a Main Product is produced along with a By-Product.
By-Product is kept on zero value but inventory is shown due to legal requirement.
Cost incurred on products are like
1. Explosive (Raw/Store material)
2. Drilling -Activity Type
3. Excavation - Activity
4. Overhead
Now catch is that sometime main product is produced along with by-product, sometime only main product is produced, and some time time only the by-product is produced. It may happen in different months.
By-Product also incur similar cost as the main product. like.
1. Explosive (Raw/Store material)
2. Drilling -Activity Type
3. Excavation - Activity
4. Overhead
Since the By-Product is non valuated the cost incurred on By Product is to be loaded/charged on the main product. How to do this scenario in costing.
Reporting requirement is important that business do want to see the how much cost is incurred on main product and by-product separately.
Like Explosive on Product and By product, Drilling Cost on Product and by product etc.
One more thing, By-Product is used for back filling purposes and this is also a production process for mines and cost of back filling also to be charged on main product. (In sap back filling is a work center)
Please do let me know if further information is required.
Regards
Ruksana