Valuation of costs and hours for item subcontracting

Infor LN 10.3

If, for item subcontracting, components are required by the subcontractor to create the end item, the fixed transfer price (FTP) is used to assign the costs of the supplied components to the end-item.

Infor LN 10.4

You can determine the process to assign the costs of the supplied materials to the received end item's inventory value for integration transactions of the type Subcontracting WIP. The Valuation for Subcontracting WIP parameter in the Purchase Order Parameters (tdpur0100m400) session is added to support this functionality.

An end item's inventory value is calculated based on these methods for the supplied materials:

  • Standard Costs
    The fixed transfer price (FTP) method is used, wherein the inventory value is calculated against standard costs and with a standard number of hours.
  • Actual Costs
    An actual costing method is used, wherein the inventory value is calculated against actual receipt prices and actual production hours.

For all material supply lines that are linked to a specific purchase order in the Purchase Order Material Supply Lines (tdpur4116m000) session, the method can either be Standard Costs or Actual Costs.

The Material Integration Transactions (tdpur4566m000) session includes the integration transactions for material supply lines. If the Show Hours in Costing check box is selected in the Implemented Software Components (tccom0100s000) session, these new fields are displayed in the Material Integration Transactions (tdpur4566m000) session:

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