Calculation method of subcontracting cost

  • Fixed 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.

    Note

    Option previously labeled Fixed Amount by Product.

  • Operation Rate
    Note

    Only applicable if the Job Shop by Site parameter has the status Inactive or In Preparation in the Implemented Software Components (tccom0100s000) session.

    If the Job Shop by Site is activated, LN will convert the value to Unit

    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
    Note

    Only applicable if the Job Shop by Site parameter has the status Inactive or In Preparation in the Implemented Software Components (tccom0100s000) session.

    If the Job Shop by Site is activated, LN will convert the value to hour

    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
    Note

    Only applicable if the Job Shop by Site parameter has the status Inactive or In Preparation in the Implemented Software Components (tccom0100s000) session.

    If the Job Shop by Site is activated, LN will convert the value to hour

    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.

  • Hour
    Note

    Only applicable if the Job Shop by Site parameter is set to Active in the Implemented Software Components (tccom0100s000) session

    The costs are calculated by multiplying the estimated man or machine hours by the subcontracting rate. The estimated man or machine hours are calculated by using operation planning data such as, gross end-item quantity, cycle time.