| | Operation Rates (ticpr1150m000)Use this session to enter the operation rates for standard
and project-related operation costs. Operation rates are used to determine the
operation costs for an item. Performance aspects The settings in this session could affect system performance and database growth. For more information, refer to Cost component setup Project A collection of manufacturing and purchasing actions that are
performed especially for a particular customer order. A project is initiated by
a customer order for items having a To Order order policy. The purpose of a project is to plan and coordinate the production
of these items. For a standard-to-order production, the project is only
used to link the item with the customer order. Otherwise, a project can
include: - Customized item data (BOMs and routings)
- Project planning (activity planning)
A budget is a special type of project. A budget is used to
plan and estimate, not to carry out production. Price Calculation Code A specification of how a cost price, valuation price, or sales
price is calculated. The code stores specific cost calculation data. The price calculation code that is defined in the Cost Price
Calculation (CPR) Parameters determines the standard cost price. Other price
calculation codes are used for simulation purposes. The price calculation code
for customized items is stored by project. Example - Specific operation rates
- Subcontracting rates
- Simulated purchase prices
- Surcharges
Operation Rate Code A code that identifies operation rates (labor costs, machine
costs, or overhead costs). The code can be linked to a task or work center.
Each cost price calculation code can comprise multiple operation rate codes and
associated operation rates. Type of Operation Costs The type of costs that the operation rate relates to. Rate The rate by man hour or machine hour. The rate that you enter
is valid for the type of operation costs that you defined in the Type of Operation Costs field. Cost Component cost component Default value The default value for this field depends on the Type of Operation Costs field. LN retrieves the default value from the Cost Price Calculation Parameters (ticpr0100m000) session. Variable Cost Operation rate lines can contribute to either fixed operation
costs or variable operation costs. Fixed operation costs are costs that are
independent on the number of items produced. Variable operation costs are costs
that depend on the number of items produced. In LN cost prices and
valuation prices can be broken down into fixed costs and variable costs. If this check box is selected, the defined operation
rate line is considered as variable costs. An operation rate that is considered
as variable costs will always be included in FTP inventory valuation. If this check box is cleared, the defined operation rate
line is considered as fixed costs. An operation rate that is considered as
fixed costs will only be included in FTP inventory valuation if the Include Fixed Costs in Valuation Price check box in the Cost Price Calculation Parameters (ticpr0100m000) session is selected. Note - The used valuation
method for inventory valuation must be Fixed Transfer Pricing (FTP). If an
actual valuation method is used, such as LIFO, FIFO, or MAUC, inventory
valuation will include fixed costs as well as variable costs.
- In standard cost
price calculation, it makes no difference whether surcharges are fixed costs or
variable costs. The outcome of the cost price is not effected. However, LN can break down the
cost
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