How to Record a By-Product in Sage 100 Production Management

How to Record a By-Product in Sage 100

There are times throughout the course of manufacturing one item that another item is created that needs to be put back into inventory in Sage 100.

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 re-usable or re-sellable, it should be issued to inventory.

View this Sage 100 step by step software tip with individual screen shots below.

Let’s look at the use of an alternate item, that when used creates an item that should be put back into inventory.

Step 1: Setup

• Production Management > Setup > Production Management Options

NOTE: This Work Ticket (WT) will use the Auto Issue method for both Labor and Materials.  As shown below, when using the Auto Issue method, the option to Limit Materials Auto-Issue to Quantity on Hand. This is designed to prevent inventory from going to a negative stock on hand.

Step 2: Work Ticket

• Production Management > Main > Work Ticket Entry

• You will see Labor Issue and Materials Issues set to Auto Issue

• Release the Work Ticket and Select ‘yes’ to the message that pops up.

• You will see a message that your Work Ticket is being processed in Transaction Entry.

• Production Management > Main > Work Ticket Transaction Entry

• Drop down Transaction No and select Materials.

• Go to Tab 2 (Lines) where you will see a part number that nothing is to issued. Meaning there is not enough stock on hand.

• Post

• Once that is posted go back to the Work Ticket and go to Tab 3 (Materials).

• Check to see if there is an alternate item. This is found under the More button in the upper right of the Item Maintenance Screen.

• Back in the Work Ticket select the item then select alternate item.

• The item(s) that you can use will show up in a new pop up. Select item

• Fill out the step and required amount. With the use of Dynamic Material Issue, the alternate item is issued directly from the Work Ticket.

NOTE: In the process of using the substitute item, an item from the new mount is removed and needs to be added back to the inventory.

Step 3: Record inventory items and add them back to inventory

• Enter a Work Ticket Transaction Entry Completion transaction.

• Enter the Substitute item number in the “Sub Item Code” field. This will enable the Qty to Complete and the Unit Cost fields.
• Enter 1 in the Quantity field
• Enter 0 in the Qty to Complete field to indicate this is a by-product item.
• In the Unit Cost field enter a specific unit cost for the by-product item.

• Update the Completion Register
• The extended cost of the by-product will be deducted from the remaining Work in Process on the Work Ticket.

The switch lock has been salvaged and put back into inventory.

When manufacturing items, things happen; material shortages and putting excess inventory back into stock are common occurrences.  This is a straightforward process to account for those scenarios.

For more information or assistance with your Sage 100 software, please contact our Sage 100 support team at 260.423.2414.

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