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17,024In Microsoft Business Central, while producing a main finished product, a by-product is generated during the manufacturing process.
The production process has the following characteristics:
- The by-product is produced on a daily basis.
- The by-product is sold on a daily basis.
- The main product production batch takes approximately 60 days to complete.
- The Production Order for the main product is therefore not finished until the end of the 60-day production cycle.
The issue is that because the Production Order remains open, the Cost Amount (Actual) for the by-product is not updated until the Production Order is finished. As a result, the by-product is being sold before its actual cost is recognized, leading to incorrect costing and an inaccurate impact on the Income Statement.
How can this scenario be handled in Microsoft Business Central? Is there a recommended costing approach, configuration, or best practice for recognizing the cost of a by-product that is produced and sold daily while the main production order remains open for an extended period?
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