Examples of subcontracting ratesThe following data is used in the examples:
Fixed amount by product Gross output * subcontracting rate = subcontracting costs 170 * 50 = $8,500 Operation rate Gross output * subcontracting rate * rate factor = subcontracting costs 170 * 50 * 2.5 = $21,250 Man hour rate Man hours * subcontracting rate = subcontracting costs 17 * 50 = $850 Machine hour rate Machine hours * subcontracting rate = subcontracting costs 34 * 50 = $1,700 Note If the currency system is independent, which you can specify in the Companies (tcemm1170m000) session, two currencies are available in the Subcontracting Rates (ticpr1160m000) details session. The currency displayed in the Subcontracting Rate Multi Currency field, is the default currency linked to the currency system. In the Currency field, you can manually specify the currency of the supplier. This currency is used for the purchase order.
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