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Supply chain | Supply Chain Management, Commerce
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Co-products Total cost Allocation logic

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Good Evening

I have been trying to understand how the Total Cost Allocation method works for co-products within formulas.

My expectations was that given the active formula, co-product and its price and qty output it would work out automatically the cost absorption  

From the D365 documentation https://learn.microsoft.com/en-us/dynamics365/supply-chain/cost-management/methodology-total-cost-allocation 

pastedimage1681239641861v1.png

Based on the above, D365 should calculate automatically the cost allocation percentages between production output and co-products 

but based on the below

pastedimage1681240073895v2.png

It seems that the only way for D365 to work out the cost allocation percentage is to manually hit the function Estimate Cost .

Am I then assuming that if we roll the STD cost of a product and cost it by a certain qty, we need to manually launch this function?

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