Sub Contract (operations) Cost Capturing in Product cost

[Former Member]

Hi Guys,

I have a problem in cost capturing for sub contract opertaions.

Scenario is : I am working on product Costing. I want to caputure the cost of various product for various opeations, this I achived through activty type. But my problem is some of operations (for making the product) has been given to outsourcing through open PO and the payment to contractor is paying by unit rate(price rates are different for different operations).

Could anybody explain me the process or settings required to capture the cost of the product which my client is paying to outsource contractor.

Regards

Srinivas

[former_member184655]

Dear Srinivas,

Check whether this link can help you,

[Product Costing along with Sub-contracting scenario.|;

Regards

Mangalraj.S

[former_member740051]

HI,

For creating the PO, there is a need of Price. Generally, this is being picked up from PIR( Purchase Infor Record). For this issue also, you need to create Sub-contrct PIR with per unit cost involved. So, this will be picked up by the system while performing cost estimate.

Hope, this answer helps!

[Former Member]

Hi,

1. Please define that particular activity as external operation in routing

2. Flag it as subcontracting

3. Assign a Material Info record to this operation. Because the cost is picked up from Material info record in this scenario.

Just talk to your PP folks. They will definitely will guide you in Routing settings in this regard

Please award points suitably

Best Regards

Surya