Standard costing with Subcontract operations

We are having an issue with our Std cost rolls when a part has a subcontract operation. We are using Price Breaks to manage the cost of the operation so it is easier for the Purchasing Department to change if there is a price increase/decrease on the operation. We leave the Unit Cost at $0.00 on the Operation and put the cost of subcontracting 1 part in the Price Break area.

When we roll the part, it is leaving the Subcontract Cost at zero so it appears to me that it isn’t looking at the Price Break area at all when cost rolling. Can anyone confirm this and/or give me some insight as to what the cost roll uses to determine the cost of the subcontract operation for the part? TIA!

Yep. It does not look at price lists.

@Mark_Wonsil Thanks for confirming! I was afraid of that…

Looks like I have a bit of work to do!

It should look to the unit cost in the Method for the cost roll. Not sure if can be populated from the price list.

Maybe could write a routine that looks up subcontract operations and (if you have the vendor set on the operation), look it up in the Supplier Price List and create a DMT file to update.

Mark W.