Dear All,

I have a operation where we utilize company resources (m/c) but labors are provided by contractor on tonnage rate basis.
To acquire labor (service) charges for specific production order we are going to do inhouse subcontracting. this will only capture labor cost but what about machine cost that is used in doing operation.
For this I suggest two similar operation like pressing in routing with work center & machine & second one with subcontracting work center.
First one operation will capture machine cost through hours accounting & second will capture labor cost through subcontracting process.

So pls provide your comments & what are the best practices to mapp this scenario.

Regards,
Sandip

Dear Sandip,
I think you are absolutly right.But there should not be any labour rate in you Oreration rate code for the first operation.
Regards,
Sibaji