Operation Rates (ticpr1150m000)

	Operation Rates (ticpr1150m000) Use this session to enter the operation rates for standard operation costs. Operation rates are used to determine the operation costs for an item. Select a cost calculation code and an operation rate code for which you want to maintain operation rates. Note If the Job Shop by Site field in the Multisite Concepts Activation (tcemm4600m000) session is set to In Preparation or Active, this session is read-only. 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 Related topics Operation rates Cost Calculation Code Cost Component Scheme in Manufacturing Cost calculation methods Cost Component Scheme in Manufacturing 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 defined at different levels, and in order of priority be related to the reference operation, machine capacity group, work center and production department's calculation office. Related topics Operation rates Currency The currency in which the cost is calculated. This is the operation rate code currency defined in the Operation Rate Codes (ticpr0150m000) session. Related topics Currency systems Sequence 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 If this check box is selected, the operation rate applies to variable costs. If this check box is cleared, the operation rates apply to fixed costs. 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. Related topics Cost Component Scheme in Manufacturing Cost Component The 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 on Material Costs General Costs Not Applicable 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. Related topics Cost Component Scheme in Manufacturing