| Calculation method of subcontracting costFixed Amount by Product The costs are calculated by multiplying the end item quantity
displayed in the Ordered Quantity field in the Purchase Order Lines (tdpur4101m000) session by the subcontracting rate. You must use
this method if the subcontracting costs are directly related to the number of
subcontracting items. The subcontracting costs are based on the gross input of
the end items. Operation Rate The costs are calculated
by multiplying the end item quantity displayed in the Ordered Quantity field of the Purchase Order Lines (tdpur4101m000) session by the subcontracting rate factor and the subcontracting rate. The subcontracting rate factor is defined in the Routing Operations (tirou1102m000) session, or in the Subcontract Operations (tisfc2210m000) session. You must use this method
if the subcontracting costs relate to the number of products, but an extra
factor is required. For example, if the
painting of the item is subcontracted. The subcontracting rate is defined as
$50 per square meter painted. Each item has a surface area of 2.5 square
meters, which is entered as the rate factor. In addition, the subcontracting
rate is based on the end item quantity displayed in the Ordered Quantity field of the Purchase Order Lines (tdpur4101m000) session. Man Hour Rate If the method is man hours rate, the costs are calculated by multiplying the estimated
man-hours by the subcontracting rate. The estimated man-hours are calculated by
using operation planning data such as, gross end-item quantity, cycle time, and man
occupation. Machine Hour Rate If the method is machine hours rate, the costs are calculated by multiplying the estimated
machine-hours by the subcontracting rate. The estimated machine-hours are
calculated by using the operation planning data, such as gross end-item
quantity, cycle time, and machine
occupation.
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