Record By-Products

During the manufacturing process, a valuable product is often created as a result of manufacturing another product. This can occur on a regular basis or due to a special circumstance unique to a specific work order. An example of a by-product is the result of trimming a 10-foot pipe to 8 feet. Creating an 8-foot pipe results in the by-product of a 2-foot pipe. If the by-product is reusable or resellable, it should be issued to inventory.

There are two ways to record production of a by-product: enter a material issue transaction with a negative quantity, or complete a work order to a different item other than the original parent.

Use one of the following methods to record by-products:

To use the material issue transaction to record by-products
To record a by-product by completing to a different item

To use the material issue transaction to record by-products

Select Work Order Main menu > Work Order Entry.
In the Work Order Number field, enter the work order number. For more information, see Work Order Entry - Fields.
Enter information for the work order, and then click the Materials tab.
In the Qty/Parent field, enter a negative number.
You can record the actual production of the by-product by recording a material issue transaction for the by-product item using Work Order Transaction Entry. You must enter a negative number in the Issue Qty field on the Work Order Transaction Entry Lines tab.

To record a by-product by completing to a different item

Select Work Order Main menu > Work Order Transaction Entry.
In the Transaction No. field, enter the transaction number. For more information, see Work Order Transaction Entry - Fields.
In the Type field, select Completion. For more information, see Completion Transactions.
Click the Lines tab.
In the Work Order No. field, enter the work order number.
In the Complete Item No. field, enter the item number of the by-product.
In the Parent Qty field, enter 0 (zero).
In the Unit Cost field, enter the by-product unit cost. The extended cost of the by-product is relieved from the cost incurred by the work order to produce the parent item. The cost of the parent item is lowered as the result of recording a usable by-product.