Subcontracting rates
Subcontracting rates are specified in the Operation Subcontracting Rates (ticpr1161m000) session by cost calculation code, reference operation, effective date and, optionally, this data:
- Product
- Production site
- Subcontractor
- Subcontractor location
Subcontracting rates are used to calculate subcontracting costs if the Source of Price for Operation Subcontracting field is set to Subcontracting Rate in the Item - Purchase (tdipu0601m000) session or the Items - Purchase by Site (tdipu0681m000) session.
How subcontracting costs are calculated, and consequently, how the subcontracting rate must be interpreted, depends on the Rate Base field in the Operation Subcontracting Rates (ticpr1161m000) details session. This field can be set to:
- Unit
- Hour
Unit
The costs or prices 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.
Select 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.
Hour
If the method is hour rate, the costs or prices are calculated by multiplying the estimated labor or machine hours with the subcontracting rate.
The estimated labor or machine hours are calculated using the operation planning data such as gross end-item quantity, cycle time, and labor and machine occupation.
Subcontracting rates have effective and expiry dates. You cannot expire a record if no other approved record exists for at least the same subcontractor.
To use a subcontracting rate, it must be approved. This is done in Actions menu.
Approved subcontracting rates are retrieved based on the cost calculation code, reference operation, effective date, and the following search path:
| Sequence | Product | Production site | Subcontractor | Subcontractor location |
|---|---|---|---|---|
| 1 | X | X | X | X |
| 2 | X | X | X | |
| 3 | X | X | ||
| 4 | X | X | X | |
| 5 | X | X | ||
| 6 | X | |||
| 7 | X | X | X | |
| 8 | X | X | ||
| 9 | X | |||
| 10 | X | X | ||
| 11 | X |
X means that for this field, a value is present. The more values are present, the less generic the rate is (and the more generic, the more subcontractors to which the rate applies). LN first looks for the most detailed rate, and if not found, LN looks for the next less detailed level, and so on, until the applicable rate is found.