Byproduct vs. Coproduct in D365 – What’s the Difference?

Dynamics 365 Finance

Byproducts are incidental results of the production process that may have value and can be recycled, sold, or discarded.
To set up a byproduct in D365, create a Finished Product BOM, add the byproduct in the BOM designer, and configure production routes accordingly.
Three industries where byproducts shine are chemical manufacturing, food processing, and metal casting.
Coproducts are planned outcomes that share the same process and have equal importance to the main product.
To set up a coproduct in D365, create a Finished Product BOM, add the coproduct in the BOM, and configure production routes accordingly.
Three industries where coproducts are crucial are pharmaceuticals, dairy industry, and meat processing.
The difference between byproducts and coproducts lies in intention: byproducts are incidental, while coproducts are planned.
Both byproducts and coproducts can add value to a business and it's important to set them up correctly in D365 to maximize production efficiency.

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