Examples of subcontracting rates

The following data is used in the examples:

Subcontracting rate	$50
Subcontracting factor	1.0
Gross output	170
Man hours run	Gross output * cycle time (hrs) = 170 * 0.1 = 17
Machine hours run	Gross output * cycle time (hrs) = 170 * 0.1 = 17
Man hours setup	Setup time (hrs) = 2
Machine hours setup	Setup time (hrs) = 2

Unit

Subcontracting costs =

gross output * subcontracting rate

= 170 * 50 = $8,500

Operation rate

Note

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

Subcontracting costs =

gross output * subcontracting rate * rate factor

= 170 * 50 * 1.0 = $8.500

Man hour rate

Note

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

Subcontracting costs =

(man hours setup + man hours run) * subcontracting rate

= (2 + 17) * 50 = $950

Machine hour rate

Note

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

Subcontracting costs =

(machine hour setup + machine hours run) * subcontracting rate

= (2 + 17) * 50 = $950

Hour

Note

Only applicable if the Job Shop by Site parameter in the Multisite Concepts Activation (tcemm4600m000) session is set to Active.

Subcontracting costs =

(machine hour setup + machine hours run) * subcontracting rate

= (2 + 17) * 50 = $950

Note

If the currency system is Independent, which is defined in the Companies (tcemm1170m000) session, you see two currencies in the Subcontracting Rates (ticpr1160m000) details session. The displayed currency of the Subcontracting Rate Multi Currency field is the default currency related to the currency system. In the Currency field, you can manually enter the currency of the supplier. This currency is used to generate the purchase order.