An encoded sheet material and method for encoding a sheet of material that has a first surface, a second surface disposed opposite the first surface and an edge extending between the first and second surfaces and peripherally about the sheet of material. The first surface, the second surface and/or the edge has one or more exudant arranged on it to encode information about at least one characteristic of the sheet of material and/or about an image carried on the sheet of material. A sheet processing apparatus uses the encoded sheet material and includes an exudant sensing device and a processor. The exudant sensing device senses the one or more exudants, their location and/or their concentration. The processor communicates with the exudant sensing device and causes the sheet processing apparatus to process the sheet of material based upon the sensed one or more exudants, their location and/or their concentration.