SyteLine Co-Product and By-Product Configuration Guide
Manufacturing processes that produce multiple outputs from a single production run require co-product and by-product configuration in SyteLine. Chemical processing, food manufacturing, petroleum refining, and sawmill operations commonly produce primary products alongside secondary outputs. SyteLine's co-product and by-product features handle cost allocation, inventory receipt, and planning for multi-output production processes.
Co-Product vs By-Product: Configuration Differences
SyteLine distinguishes between co-products and by-products based on economic significance and planning behavior. Co-products are planned outputs with significant economic value—they appear in MRP as planned supply and carry allocated production costs. By-products are incidental outputs with minor value—they receive inventory credit but do not drive production planning. Configure co-products in the BOM form by adding output items with the Co-Product flag set to 'Yes' on the BOM material line. Each co-product line specifies the output quantity ratio relative to the parent item. By-products use the By-Product flag with a simpler configuration since they do not require cost allocation percentages. The critical setup is in the Items form: co-product items must have their Planning Method set to 'MRP Planned' and their source BOM pointed to the parent process item, while by-product items typically use 'Not Planned' or 'Manual' planning methods since they are produced incidentally.
- Co-products: planned outputs with cost allocation, set Co-Product flag on BOM material lines
- By-products: incidental outputs without planning, set By-Product flag with simpler configuration
- Configure output quantity ratios on each co-product BOM line relative to parent item quantity
- Set co-product items to MRP Planned with source BOM pointing to parent process item
Cost Allocation Methods for Multi-Output Production
When a single production process yields multiple valuable outputs, production costs must be allocated across co-products. SyteLine supports three allocation methods configured in the Co-Product Cost Allocation form: percentage-based (fixed allocation percentages per co-product), weight-based (allocation proportional to output weight), and market-value-based (allocation proportional to each co-product's standard or market price). Configure the allocation method at the BOM level since different process BOMs may use different allocation approaches. The allocation percentages must sum to 100% across all co-products. During job costing, SyteLine distributes actual material, labor, machine, and overhead costs across co-product job suffixes based on the configured allocation. By-products receive a credit value (typically the net realizable value) that reduces the total cost allocated to co-products. Monitor cost allocation accuracy by comparing allocated costs against actual market values in the Co-Product Cost Analysis report—significant deviations indicate the allocation method or percentages need adjustment.
- Three allocation methods: percentage-based, weight-based, and market-value-based per BOM
- Allocation percentages must sum to 100% across all co-products in a process BOM
- By-product credit values reduce total cost allocated to co-products using net realizable value
- Monitor allocation accuracy with the Co-Product Cost Analysis report and adjust percentages quarterly
Yield Management and Process Variability
Multi-output processes inherently have variable yields—the ratio of co-product outputs fluctuates based on raw material quality, process conditions, and equipment performance. SyteLine handles yield variability through the Yield Percentage field on BOM co-product lines and the Process Yield configuration on routing operations. Configure expected yields based on historical production data: if a chemical process typically yields 40% Product A and 35% Product B with 25% waste, set co-product yield percentages accordingly. During production, actual yields are recorded at job completion through the Job Receipt form, where operators enter actual quantities for each co-product. SyteLine calculates yield variance as the difference between expected and actual quantities, posting the variance to the Production Yield Variance account configured in the GL Integration form. For processes with highly variable yields, enable the Yield Tracking feature that maintains a rolling yield average per process BOM and automatically adjusts planning quantities based on recent yield history. This prevents MRP from over-planning or under-planning co-product production based on outdated yield assumptions.
- Configure expected yield percentages on BOM co-product lines based on historical production data
- Actual yields recorded at job completion through Job Receipt form with per-co-product quantities
- Yield variance posts to Production Yield Variance GL account configured in GL Integration form
- Enable Yield Tracking for rolling yield averages that automatically adjust MRP planning quantities
Configuring multi-output manufacturing in SyteLine? Our process manufacturing specialists set up co-product workflows that track costs accurately—contact us.
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