<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/ti/onlinemanual/000000000000019" xml:lang="en">
   <Header>
      <Title>Examples of subcontracting rates</Title>
   </Header>
   <GeneralSection>
      <Paragraph>The following data is used in the examples:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="5">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">Subcontracting rate</TD>
               <TD rowspan="1" colspan="1">$
				50</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">Subcontracting factor</TD>
               <TD rowspan="1" colspan="1">2.5</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">Gross
				output</TD>
               <TD rowspan="1" colspan="1">170</TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">Man hours</TD>
               <TD rowspan="1" colspan="1">Gross output * cycle time
				(hrs) = 170 * 0.1 = 17</TD>
            </TR>
            <TR no="5" isLast="true">
               <TD rowspan="1" colspan="1">Machine hours</TD>
               <TD rowspan="1" colspan="1">Gross output *
				cycle time (hrs) = 170 * 0.2 = 34</TD>
            </TR>
         </TBODY>
      </TABLE>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Fixed amount by product</SectionTitle>
      <Paragraph>Subcontracting costs =</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>gross output * subcontracting rate</Paragraph>
      </Formula>
      <Paragraph>= 170 * 50 = $8,500</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Operation rate</SectionTitle>
      <Paragraph>Subcontracting costs =</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>gross output * subcontracting rate * rate factor</Paragraph>
      </Formula>
      <Paragraph>= 170 * 50 * 2.5 = $21,250</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Man hour rate</SectionTitle>
      <Paragraph>Subcontracting costs =</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>man hours * subcontracting rate</Paragraph>
      </Formula>
      <Paragraph>= 17 * 50 = $850</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Machine hour rate</SectionTitle>
      <Paragraph>Subcontracting costs =</Paragraph>
      <Formula space-and-orientation="indented-estimated">
         <Paragraph>machine hours * subcontracting rate</Paragraph>
      </Formula>
      <Paragraph>= 34 * 50 = $1,700</Paragraph>
   </GeneralSection>
   <Note>
      <SectionTitle>Note</SectionTitle>
      <Paragraph>If the currency system
		is Independent, which is defined in the <GUIRef href="/baanerp/tc/emm/tcemm1170m000" role="session">Companies (tcemm1170m000)</GUIRef> session, you see two currencies in the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000" role="session">Subcontracting Rates (ticpr1160m000)</GUIRef> details session. The displayed currency of the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.srmc" role="manual">Subcontracting Rate Multi Currency</GUIRef> field is the default currency related to the currency system. In
		the <GUIRef href="/baanerp/ti/cpr/ticpr1160m000#ticpr160.ccur" role="manual">Currency</GUIRef> field, you
		can manually enter the currency of the supplier. This currency is used to
		generate the purchase order.</Paragraph>
   </Note>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000081" role="manual">Operation subcontracting without material flow support</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000084" role="manual">Subcontracting rates</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>