CoProduct and Scrap Costing
In manufacturing processes, efficient cost management is essential for tracking production and waste. Co-Product and Scrap Costing play a vital role in accurately allocating costs to materials, ensuring precise financial and operational reporting.
Scrap
To account for Scrap materials, create an Item Costing record specifically for the Scrap material item. This record helps allocate costs associated with waste material generated during production.
CoProduct
Costing for Co-Products follows the same principles as Scrap Costing. The process involves defining the appropriate Item Costing records and assigning cost allocations proportionally to ensure all materials are accurately accounted for.
Cost Allocation
Proper cost allocation is critical for both Scrap and Co-Products. This ensures that costs are distributed appropriately based on production outputs and waste generation.
