Manufacturing Process Software
Negative Consumption to Account for By-Product Production
It is quite common in Process Manufacturing for a By-Product to be produced at the same time the primary product is produced.
A good way to handle that in Dynamics NAV is to set up an item for the By-Product and give it a costing method of Standard.
Set the Standard Cost of the item at its value.
Figure 1 – Set up an item for the By-Product and give it a costing method of Standard. Set the Standard Cost of the item at its value.
Then put the item on the Prime item’s Bill-of Material with a negative quantity.
Now when we create a Production Order and look at the component list, we can see that our By-Product is listed with a quantity of negative one.
Figure 2 – Put the item on the Prime item’s Bill-of Material with a negative quantity
In the Production Journal, we can change the quantity to the actual amount of By-Product Produced.
Figure 3 – Changing the quantity of the amount of By-Product produced in the Production Journal
When we look at the item card information for the By-Product, we see that the By-Product has been added to stock.
Read about the advantages of Microsoft Dynamics NAV for manufacturing.
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