| # Examples of subcontracting rates The following data is used in the examples:
Subcontracting rate | $ 50
Subcontracting factor | 2.5
Gross output | 170
Man hours | Gross output * cycle time (hrs) = 170 * 0.1 = 17
Machine hours | Gross output * cycle time (hrs) = 170 * 0.2 = 34
Fixed amount by product
    Gross output * subcontracting rate = subcontracting costs
170 * 50 = $8,500 Operation rate
    Gross output * subcontracting rate * rate factor = subcontracting costs
170 * 50 * 2.5 = $21,250 Man hour rate
    Man hours * subcontracting rate = subcontracting costs
17 * 50 = $850 Machine hour rate
    Machine hours * subcontracting rate = subcontracting costs
34 * 50 = $1,700 Note If the currency system is independent, which you can specify in the Companies (tcemm1170m000) session, two currencies are available in the Subcontracting Rates (ticpr1160m000) details session. The currency displayed in the Subc. Rate Multi Curr. field, is the default currency linked to the currency system. In the Currency field, you can manually specify the currency of the supplier. This currency is used for the purchase order. Related topics Operation subcontracting without material flow support Subcontracting rates |