Cost of a "Bi-Product"

Business Central/NAV User Forum
1

Dear Sir,

My Client is Manufacturer of a chemical compound. If follows FIFO system of Costing. We are using default Dynamics NAV 2009 SP1 with AM.

At a certain stage of Production a new Biproduct emerges out of the system. Thus the costs are bifurcated at the “split up” point. It may so happen that this bi-product is directly sold.

Now, I have defined the BOM of the Main proudct such that the bi-product is shown in negative quantity in the BOM lines. When consumption is posted then the Bi product emerges in the usual way and quantity is updated.

But the problem is the cost of the Inputs is absorbed by the main products only. No cost additions happens in case of the Bi product. When this bi product is sold then no CGS is taken.

Client wants to absorb a part of input cost (both Material, Direct capacity cost and overhead cost) into the bi-product. How shall I do it?

2

You cannot - there are specific industry standard process add ons that allow the processing of co and by-products. If you use standard Nav you have to live with the way it handles the costing. Standard costing would handle an element of this, I presume you are acerage/fifo, in these instances you produce something from nothing, so it cost nothing, unless you build into the system the process aspects.