How to calculate or capture the Sub-Contracting Charges

[Former Member]

In CK13N, How the Sub-Contract rate is derived.

Kindly the tell the derivation methodlogy for SubContract Rate.

Thanks in advance

K.Natarajan

[former_member184655]

Dear Natarajan,

1.For Sub-sontracted products ,the cost of that product = Raw-materials cost (which are sent to the third

party) + External processing cost(as per the cost mantained in ME11 for sub-contracting).So if the raw

materials cost is Rs 10 & the processing charges are Rs 25 means then the sub-contracted product cost

= 10+25 = Rs 35.

2. For sub-contracted Product you will be getting only the sub-contracting cost and not the manufacturing

cost.It will be having only raw material cost and sub-contracting charges.

Or do you want in this way?say X is a sub-contracted part and its made up of raw materials X1 & X2 and

once X is received ,its used for manufacturing Y ,So if you check the cost of Y it will having the sub-

contacted item (X) cost + Internal processing cost (operation cost for producing Y),so if you check for Y it

should show the split up of internal activity cost + sub-contracting charges +raw materials cost ?

3.For your information,if you check CK13N for your finished product which is produced using the Sub-

contracted product,then after giving the input and press enter ,then press F5,now you will get the exact

split up in which you were looking for.like processing cost ,conversion cost + material cost.

check the link - [Product Costing for Sub Contracted material|]

Check & Revert back.

Regards

Mangalraj.S

[Former Member]

Dear Mr.Mangalraj,

Thank you. See as in CK13N , by pressing, we are able to see the split of cost like subcontract, material , labour, direct etc. What I Need is , How that Subcontract Rate is calculated.

Kindly tell me.

Regards

K.Natarajan

[former_member184655]

Dear Natarajan,

Sub-contracting Rate information is been provided by the vendor and the MM person or the purchasing

person will be knowing this information and while creating the Purchase Info Record for Sub-contracting in

ME11, the Rate will be mentioned as processing charges.

I hope now you will be clear regarding the same,if not means revert back.

Regards

Mangalraj.S

[Former Member]

Thank you Mr.Mangalraj,

I have seen the Table EINA & EINE. But for an item, there are three info records available. How to see the Active Records.

In ME13, If we see the item and info number, It is displaying as Flagged for Deletion. How it is displaying that.

Also, If more than 1 Record is active, How to take the rate of subcontract for an item.

Ex.; If A is the Semi-Finished Product which is given to subcontract and if subcontractors info records are more than 1, how to fetch the Subcontract Rate of that item.

[former_member184655]

Dear Natarajan,

Since I dont have any system access to SAP,I'm unable to help you properly.

But check in ME11 whether is there any period limit,if that's so then while doing the cost estimate based

on the validity date the system will automatically pick up the Processing Charges from the Purchase Info

Record.

But What I have explained in my previous reply is the procedure.

Regards

Mangalraj.S

[Former Member]

As such, subcontract rate is defined in MM module. If you don't maintain subcontractor price, during costing run, you will get the error as Subcontract price not maintained.

But you can use the inhouse manufacturing cost to maintain subcontract cost. ( If you want I can give the methodology for inhouse manufacturing cost calculation)

Hence sub contract rate is picked up from MM module ( You can view subcontract information by displaying PIR for a particular material - T code-ME13. Maintain in ME11)

Madhava KN

[former_member184655]

Dear Natarajan,

Are you satisfied with the solutions given?

Please check & reply.

Regards

Mangalraj.S

[Former Member]

Dear Mr.Mangalraj,

Based on the BOM Component, I am trying to take the Subcontract Rate from EINA & EINE. Also Compared With EORD. For Example, Component A is having 3 Different Subcontractor Info Records which is also available in EORD. But In CK13N, Only Two of them is displaying and other one is not displayed. How to identify the reason for skipping. I even saw the Validity Period (From & To) All are OK.

Give me an Idea to take Exactly as CK13N.

Thanks in advance

K.Natarajan

[former_member184655]

Dear Natarajan,

While executing CK13N,I'm not sure how you are getting 2 values of the Purchase Info Record ,because at

a time the cost can be calculated only by using one processing value and in case if you want to consider

one particular Purchase info record means ,please check by including the tick mark in ME01 for source list

against Fixed Source.

Still if you are not satisfied with my solution means,then you have to take the help from a MM consultant.

Please check & Reply.

Regards

Mangalraj.S

[Former Member]

Hi

check this docs

http://help.sap.com/saphelp_47x200/helpdata/en/35/6e8ac0c27242558395188e1df0ec46/frameset.htm

-ashok

[Former Member]

Thank you Ashok.

I am doing Cost Estimation Sheet. For that I Required Subcontract Rate for each and every component as per CK13N Screens.

So, How to find out the rate of subcontract for each component

[Former Member]

HI

when you do cost estimation generally sytem picks the price from material master only for components and the activity prices of the operation ]

i think we can not see the subcontracting cost in estimatiion

-ashok

[Former Member]

Hi

for a sub-contracting material there will be a BOM. so while taking the standard cost run system will take the material price from BOM item (addition of MAP of all BOM components) and the labour charge from PO.

Regards

Amit Parkhi