09 Apr How to Handle Co-Parts and By-Products in Epicor Kinetic
How to Handle Co-Parts and By-Products in Epicor Kinetic
Manufacturers often lose margin visibility when multiple outputs come from a single production job, but their ERP only tracks one primary finished good correctly. This article explains how to handle co-parts and by-products in Epicor Kinetic, including setup, costing, job management, common mistakes, and best practices.
- Accurately track multiple outputs from a single production job
- Improve inventory valuation and cost allocation
- Reduce manual adjustments and accounting errors
- Gain better visibility into production efficiency
- Standardize processes for scalable manufacturing operations
Co-Parts and By-Products in Epicor Kinetic — What They Are and Why They Matter
Co-parts and by-products in Epicor Kinetic improve production accuracy by allowing manufacturers to track multiple outputs from a single job instead of forcing everything into one finished good. This capability ensures that companies capture the true value of all materials produced during manufacturing.
What are co-parts vs by-products
Co-parts are multiple primary outputs that share production cost, while by-products are secondary outputs with minimal or offset cost. Each has its own inventory and financial treatment in Epicor Kinetic.
Why manufacturers need multi-output tracking
Tracking all outputs ensures accurate costing, better pricing, and improved production visibility, helping teams make informed operational and financial decisions.
Where errors typically occur in ERP systems
Errors occur when costs are assigned to one product or outputs are tracked manually, leading to inventory discrepancies and unreliable financial reporting.
Co-Parts and By-Products in Epicor Kinetic — Who Should Use This Functionality
This functionality benefits industries like manufacturing, food processing, chemical production, and any process with multiple outputs from a single production job. It helps planners, production supervisors, and finance teams accurately capture operational and financial data.
Co-Parts and By-Products in Epicor Kinetic — How to Configure Part and Method Setup
Creating co-parts in Part Master
Co-parts and by-products in Epicor Kinetic start with a strong Part Master setup. Proper part configuration ensures each output is tracked and costed correctly.
- Create separate part records for each co-part
- Assign part class, product group, and costing method
- Enable inventory tracking for full visibility
Defining by-products in Method of Manufacture (MOM)
By-products are defined in MOM to capture secondary outputs automatically.
- Add by-products as secondary outputs within MOM
- Specify expected quantity per production run
- Assign appropriate cost treatment
- Link to inventory locations
Linking outputs to a single job
Co-parts and by-products can be linked to a single production job to improve tracking and reporting.
- Define multiple output parts within the job
- Assign co-parts as primary outputs
- Include by-products via MOM configuration
- Set expected quantities and yield relationships
Co-Parts and By-Products in Epicor Kinetic — How Costing and Allocation Works
Cost distribution across co-parts
Epicor Kinetic distributes costs across co-parts to reflect accurate production costs.
- Percentage-based, quantity-based, or weight-based allocation
- Accurate product costing and margin analysis
- Improved pricing and decision-making
Handling zero or negative cost for by-products
By-products are treated with minimal or offset cost to prevent distorting primary product costs.
- Zero cost assignment or negative cost offset
- Captures value without inflating primary product cost
- Supports accurate profitability reporting
Impact on GL and financial reporting
Co-parts and by-products in Epicor Kinetic automatically update GL and inventory.
- Accurate inventory valuation
- Correct cost of goods sold (COGS)
- Reduced manual journal entries
Co-Parts and By-Products in Epicor Kinetic — Where They Appear in Job Management
Job entry and job tracker visibility
All outputs appear within a single job for real-time visibility.
- View co-part outputs and by-products together
- Track planned vs actual quantities
- Monitor job progress and performance
Reporting production quantities
Operators report quantities accurately to update inventory and track yield.
- Enter completed quantities per co-part
- Generate by-products automatically
- Measure variances for analysis
Managing scrap vs usable by-products
Differentiate between scrap and valuable by-products.
- By-products: usable items tracked in inventory
- Scrap: waste material logged separately
- Recover value and improve inventory accuracy
Co-Parts and By-Products in Epicor Kinetic — Common Mistakes and How to Avoid Them
Incorrect cost allocation setup
Improper allocation leads to distorted costs and inaccurate margins.
- Ensure consistent allocation methods across jobs
- Align allocation with production drivers
- Review costing regularly
Misclassification between co-parts and by-products
Correct classification ensures accurate costing and inventory.
- Define clear criteria for co-parts vs by-products
- Train teams on classification standards
- Review classifications during process changes
Inventory discrepancies and reconciliation issues
Accurate reporting prevents inventory mismatches.
- Report all quantities for co-parts and by-products
- Automate by-product generation in MOM
- Minimize manual adjustments
Co-Parts and By-Products in Epicor Kinetic — Why Best Practices Improve ROI
Standardizing BOM and routing processes
Standardization ensures consistent production and reliable reporting.
- Repeatable BOM structures for multi-output processes
- Align routings with shop floor operations
- Reduce setup errors and speed up onboarding
Automating cost tracking and reporting
Automation reduces manual work and improves financial accuracy.
- Automatic cost distribution for co-parts
- By-products generated with defined cost treatment
- Real-time reporting of production data
Improving decision-making with accurate data
Reliable data supports better pricing, production, and investment decisions.
- Analyze true product profitability
- Identify high-performing outputs
- Optimize pricing and production strategy
Take the Next Step
Proper handling of co-parts and by-products in Epicor Kinetic improves cost accuracy, inventory control, and operational efficiency.
Scaled Solutions Group is here to guide you every step of the way.
Call (866) 957-8419
Email info@scaledsolutionsgroup.com
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