Set up recycled products in formulas

Applies To: Microsoft Dynamics AX 2012 R3

This topic describes how to set up recycled products in formulas when using process industries production. Recycling a produced output product, so that it can be reused as an input product in the same production process, is a common industry scenario. For example, a stamping process in a foundry may produce metal scrap as a by-product. This metal scrap may then be consumed subsequently as an ingredient in the same process. Working with recycled products in formulas requires setup of the products that will be recycled, and the formulas that will consume and produce recycled products.

Prerequisites

The following table shows the prerequisites that must be in place before you start.

1. Set up a product to use standard cost

Recycled products must use the standard cost method. The joint production costs that are allocated to the formula and co-products are deducted by using the standard cost value of the recycled by-product.

Define standard cost on the item model group that the item is assigned to. The item model group determines how to calculate the consumption of the item. To assign standard cost, follow these steps:

1. Click Product information management > Common > Released products.

2. Double-click the product to open the Released product details form.

3. On the General FastTab, in the Administration field group, in the Item model group field, select an item model group that has been set up for standard cost.

2. Define a product as a formula by-product

When you define a product as a formula by-product, it can be recycled for consumption.

1. Click Product information management > Common > Released products.

2. Double-click the product to open the Released product details form.

3. On the Engineer FastTab, in the Formula planning field group, in the Production type field, select By-product.

3. Set up a formula that consumes a recycled product

This task adds the recycled product as an input ingredient in a formula.

1. Create a formula and formula version. For more information, see Create a formula and formula version.

2. In the Formula form, select the formula, and then click Lines to add an ingredient to the formula.

3. In the Formula line form, create a line that specifies the by-product as an input ingredient to the formula.

4. Set up a formula that produces a recycled product

This task defines the recycled product as an output by-product of a formula.

1. In the Formula form, select the version and then click Co-products.

2. In the Co-products form, add a line for the by-product. The Production type must be By-product.

   Tip

   You can also use products that have the production type Co-product, but then you must change this to By-product on the formula or batch order.

3. In the Burden field, select Recycled. The burden type determines how to handle the cost of the recycled by-product.

Related tasks

Create a formula and formula version

Technical information for system administrators

If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.

See also

Setting up and maintaining standard costs