Answer / amit kataria

A co-product have Non-zero inventory valuation ,cost
settlement is required and appears in header settlement
rule.
A By-product have Non-zero inventory valuation,cost
settlement is not required and do not appear in header
settlement rule.
I think this will clear ur doubt.
It should be considered as by product.

Amit Kataria
SAP PP CONSULTANT
9212689970

Answer / hima bindu

A Co-Product is considered as Value stock, also this we can produce individually by creating separate production for this.

Where as for By-Product we don't create separate production order, because by-product will get generated when we are producing the mail material.
In your case sugar is the header material which is producing, bagasse is the by-product coming out while producing the sugar. This is reason we are defining as By-product instead of Co-Product.

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