On By-product is an item in SAP Business One that is additionally produced during the manufacture of a main product and has its own economic value.
Demarcation
- Main product: The actual objective of the production order
- By-product Arises inevitably during production and has a market value
- Waste Has no or little value and is not recorded as a by-product
Use in SAP Business One
By-products are listed in the bill of materials as components with a negative quantity. When the production order Production order The byproduct is automatically booked as a goods receipt and reduces the manufacturing cost of the main product proportionally. This is particularly relevant in the chemical industry, food processing, and the timber industry.
Practical tip
Value by-products at net realisable value to Production costs to realistically calculate the main product.
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