How to tie a Co-Product/By-Product process to inventory
When defining a co-product/by-product process, enter the output items on the Output FastTab of the co-product process version card. This means the output items must already be set up in the program. During initial setup, however, it is not possible to tie co-product items to a production BOM, because the production BOM has not yet been created. Once output items are assigned to a co-product/by-product process, you can tie this process to the appropriate inventory items.
Only inventory items entered as co-products can be tied to a production BOM. Because by-product items can come from several co-product/by-product processes, they cannot be tied to a production BOM.
Steps
In the search box, enter Items, and then choose the related link.
Open the relevant item card and click the Replenishment FastTab.
Choose the Production BOM No. field and select the production BOM to which the item has been assigned as an output item.
Enter the item's own number in the Production Grouping Item field.
A production grouping item identifies a common intermediate item that groups together production requests for finished goods sharing the same intermediate. Because the output item of a co-product/by-product process is an intermediate, assign it as its own production grouping item.
After you tie an item to a co-product/by-product process, it may be necessary to calculate the standard cost of the item.