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Process Industry- How to map the Scenario?

Dear Gurus,

The is a Process Industry, Chemical Manufacturing Unit, which does the following sequence of Operation to get the Semi finished material.

1) Acid, TC, and Catalyst are 3 Raw materials

2) Acid, TC and catalyst after being put into reactors, they Undergo 2 Phases. Crude and Distillation

At crude phase, Crude is Produced. But they dont want to do confirmation of crude.

At Distillation stage, Main Fraction(MF), a semi-finsihed material is Produced

But at the distillation Phase, 2 more, Products are produced in conjugation to MF.

These 2 Products are Lower Fraction(LF) and Residue.

When these LF and Residue are produced, they again put into reactor and some qty of TC is added to achieve MF which again produces some portion of LF and Residue. And these cycle goes on.

They keep these process continuing. 

In short: MF is derived in 2 ways

Acid+TC+ Catalyst=MF

LF+Residue+TC=MF

Please help me in mapping below Points comprehensively.( They want one Order Type for 2 phases.)

1) How BOM will be made of LF and residue if I treat them as Co-Product??? Or some other technique in SAP can map it?

2) What is the Step by step Costing configuration of Co-Products. I searched lot but unable to find the proper settlement rule of Co-Products.

Thanks

Shailesh Mishra

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