I am replacing some plywood on my shed and am using the stuff that looks like little pieces all pressed together. One side is smooth and the other side has a rough texture. I put the rough side down and then saw that it said to put the smooth side down. Why is this and what will happen if I leave it this way?

The shed is going to be used as a chicken coop if that matters. I also put the smooth side out on the wall.

I'm guessing that the rough side has a coating that will repel water temporarily while under construction, and that's why they said to put that side up. In your case, you probably will be "under construction" for just a few days, and you will apply some kind of siding or roofing to the boards quickly enough that water damage won't be an issue.

Thank you Richard.