Co-product Output in Production

ALopez2710

We have a process where by we output two different items in a production run for one bulk component, I was thinking of setting up the main output items as the regular finished good output and having the secondary output item as a negative consumption in the BOM so that it will post a positive when flushing along with the reg. negative consumption components.

Has anybody done this? The main question with doing it this way is, how do we account for mfg. costs (the portion of the bulk) for the secondary output item?

How do you normally handle this type of process?

Faithie_Robertson

I've never done this in NAV, but in another ERP I had a BOM for the processing of a chicken, where the end product was actually by-products. A negative component is how we did it.

You should be able to allocate the MFG Costs through your routing on the negative component item.

ajaykt_2000

Dear
With the help of defining family you can take o/p of co product.

pantula2000

Given the available NAV feature...as a work around solution without customization, suggest customer to assign "standard" costing method for the secondary product....and update the same periodically as and when required using Standard Cost Worksheet.

This way when it is declared as a -ve consumption entry, an entry in item ledger entry will happen with standard cost.

However note it will net the costing of the main product (production order) by the same amount.

Regards,

Sridhar

ALopez2710

Thanks to all for your advice.

It looks like setting the co-product as a neg. consumption item will work. I later found out that the co-product item is also sometimes the only output item when a different process is used, so the cost should update this way and use same under the first scenario.