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.

Select a price-calculation code, an operation rate code, and, if required, a project for which you want to maintain operation rates in the details session.

Note
  • For all rates, a cost component of the cost type Operation Costs must be specified.
Performance aspects

The settings in this session could affect system performance and database growth. For more information, refer to Cost component setup

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Project (PCS)

A collection of manufacturing and purchasing actions that are performed especially for a particular customer order. A project is initiated 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)
Cost Calculation Code

A specification of how a standard cost, valuation price, or sales price is calculated. The code stores specific cost calculation data.

The price calculation code that is defined in the Standard Cost Calculation Parameters (ticpr0100m000) session determines the standard cost. Other cost 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 standard cost calculation code can comprise multiple operation rate codes and associated operation rates.

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Currency

The currency in which the cost is calculated.

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Sequence Number

The number that identifies a data record or a step in a sequence of activities. Sequence numbers are used in many contexts. Usually LN generates the sequence number for the next item or step. Depending on the context, you can overwrite this number.

Type of Operation Costs

The type of costs that the operation rate relates to.

Note
  • The operation costs type must match the cost type selected in the Cost Component field. Example: If the cost component cost type is Labor, the operation cost type must be Labor.

Allowed values

Operation Rate Type

Variable Cost

Specifies whether the project surcharges are variable or fixed.

If this check box is selected, the surcharge is considered a variable cost. Otherwise, it is considered a fixed cost.

Note

Fixed costs are only included in the standard cost of a project if the Include Fixed Costs in Project Valuation parameter is selected.

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.

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Cost Component

A cost component is a user-defined category for the classification of costs.

Cost components have the following functions:

  • To break down an item's standard cost, sales price, or valuation price.
  • To create a comparison between the estimated production order costs and the actual production order costs.
  • To calculate production variances.
  • To view the distribution of your costs over the various cost components in the Cost Accounting module.

Cost components can be of the following cost types:

  • Operation Costs
  • Material Costs
  • Surcharge
  • General Costs
  • Not Applicable
Note

If you use Assembly Control (ASC), you cannot use cost components of the General Costs type.

Note
  • The operation costs type must match the cost type selected in the Cost Component field. Example: If the cost component cost type is Labor, the operation cost type must be Labor.

Default value

LN retrieves the default value from the Standard Cost Calculation Parameters (ticpr0100m000) session.

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