| # Subcontracting Rates (ticpr1160m000) Subcontracting rates are rates for subcontracted operations, and are used to calculate subcontracting operation costs. Use this session to list and define subcontracting rates by price-calculation code, subcontractor, and task. If you enter an item in the Parent item field, you can define item-specific rates. You can use subcontracting rates for subcontracting with material flow as well as for subcontracting without material flow: Subcontracting with material flow If you use subcontracting with material supply, and the Source of Price field in the Items - Purchase (tdipu0101m000) session is Subcontracting Rate, ERP LN uses the subcontracting rates to calculate subcontracting costs Subcontracting without material flow If you use subcontracting without material flow, you must use this session to enter subcontracting rates so that ERP LN can calculate subcontracting costs. You must enter an item of the Subcontracted Service type in the Subassembly field. This item represents the subcontracted operations, and is displayed on the subcontracting purchase order. Performance aspects The settings in this session could affect system performance and database growth. For more information, refer to Cost component setup Related topics Overview of subcontracting Subcontracting rates Cost components in Manufacturing Cost price calculation Price calculation code Project A collection of manufacturing and purchasing actions that are performed especially for a particular customer order. A project is initiated by a customer order for items having a To Order order policy. The purpose of a project is to plan and coordinate the production of these items. For a standard-to-order production, the project is only used to link the item with the customer order. Otherwise, a project can include: Customized item data (BOMs and routings) Project planning (activity planning) A budget is a special type of project. A budget is used to plan and estimate, not to carry out production. Price Calculation Code A specification of how a cost price, valuation price, or sales price is calculated. The code stores specific cost calculation data. The price calculation code that is defined in the Cost Price Calculation (CPR) Parameters determines the standard cost price. Other price 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 Parent item The end item on the production order for which one or more operations can be subcontracted. Subcontracting with Material Flow Subcontractor A business partner that is hired to perform certain services, such as the execution of a part of a project or production order. The services are delivered via a purchase order. Task The task to which the subcontracting rate is linked. Calculation Method for Subcontracting Costs The method of calculating subcontracting costs. Cost Component A cost component is a user-defined category for the classification of costs. Cost components have the following functions: To break down an item's cost price, 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: Material Costs Operation Costs Surcharge on Material Costs Surcharge on Operation Costs WIP Transfer Costs General Costs Note If you use Assembly Control (ASC), you cannot use cost components of the General Costs type. 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-price calculations and production order costing. Default value ERP LN retrieves the default value from the Cost Price Calculation Parameters (ticpr0100m000) session. Related topics Cost components in Manufacturing Subassembly If you are subcontracting with material flow, you can optionally enter the item that is the result of a subcontracted operation. This item becomes the default value of the Subassembly field in the Routing Operations (tirou1102m000) session. If you are subcontracting without material flow, you must enter an item of the Subcontracted Service type, defined in the Items - General (tcibd0501m000) details session. This item represents the subcontracted operations, and appears on the subcontracting purchase order. Subassembly subassembly subcontractor The subcontracting item must be of the Subcontracted Service type. 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. Related topics Currency systems 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. Subcontracting Rate The costs for subcontracting. |