Subcontracting Rates by Project (tipcs1160m000)

Field Information

Project (PCS)

The project for which the subcontracting rates are managed.

Cost Calculation Code

cost calculation code

Parent item

The end item on the production order for which one or more operations are subcontracted.

Subcontracting with Material Flow

If this check box is selected, subcontracting with material flow applies.

Subcontractor

subcontractor

Subcontracting Rate Multi Currency

The subcontracting rate if you use an independent currency system.

The currency that is displayed as default, and the corresponding subcontracting rate are related to the currency system. The default currency is used in internal calculations. The other currency relates to the currency of the supplier and can be manually entered. This currency is used when generating a purchase order.

Reference Operation

The reference operation to which the subcontracting rate is linked.

Currency

The default currency and the corresponding subcontracting rate are related to the currency system that is used in internal calculations. This currency relates to the currency of the supplier and can be entered manually. This last one is used on generation of the purchase order.

Cost Component

cost component

The cost component must be of the Operation Costs type. This is the cost component on which the estimated subcontracting costs can be viewed in the cost calculations and production order costing.

Default value

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

Subassembly

If you are subcontracting with material flow, you can optionally enter the item that is the result of a subcontracted operation.

• If the Job Shop by Site parameter in the Concept Activation (tcemm4600m000) session is set to Inactive or In Preparation, the item becomes the default value of the Subassembly field in the Routing Operations (tirou1102m000) session.

• If the Job Shop by Site parameter in the Concept Activation (tcemm4600m000) session is set to Active, the item becomes the default value of the Subassembly field in the Job Shop Routing Operation (tirou4601m000) session.

Subcontracting Rate

The subcontracting rate defined for the project.

Rate Base

The method of calculating subcontracting costs.

Allowed values

Unit

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.