Negative Consumption to Account for By-Product Production in Microsoft Dynamics NAV
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.
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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 I create a Production Order and look at the component list, I can see that my By-Product is listed with a quantity of negative one.
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Figure 2 – Put the item on the Prime item’s Bill-of Material with a negative quantity
In the Production Journal, I can change the quantity to the actual amount of By-Product Produced.
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Figure 3 – Changing the quantity of the amount of By-Product produced in the Production Journal
When I look at the item card information for the By-Product, I see that the By-Product has been added to stock.
Read about the advantages of Microsoft Dynamics NAV for manufacturing.
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Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.
