| # Project pegging overview In project manufacturing environments, to facilitate cost accountability for finished goods within projects, you can implement project pegging and indicate that items are project pegged. If a project pegged item is specified on a demand order, pegging information is used to allocate, track, trace, register, and supply inventory. You can track the costs at the project, activity, and element level throughout the entire flow of goods. That is, pegging information is added to items, inventory, and transactions when goods are ordered, received, issued, and consumed. Peg distribution information is available for purchase, warehouse and shop floor orders to be able to track for which project cost account the goods are ordered. The peg distribution lines include the item, required quantity, unit, configuration, and the project cost account (peg) elements. In addition, the distribution lines contain information on the top demand order, such as customer, contract, prime contractor, and top demand order date. The main purpose of distribution lines is cost distribution and not the physical movement of items. In case of exceptional situations, such as partial receipts, over issues, rejections, and returns, the quantities are allocated according to the fair, equitable and unbiased accounting principle in which the demand need date is the main driver. Multilevel order pegging inquiries are available to manage dependencies in the supply chain, and requirements of multiple projects can be commingled in one purchase order to leverage volume discounts. Actual costing and earned value can be reported any time against the project. Note If you are only using Project to record the cost that is generated from processes in other packages such as Manufacturing or Sales Control, project item data is not required. Setting up project pegging Step 1. Select the Project Pegging check box in the Implemented Software Components (tccom0100s000) session. If you want to use project pegging in combination with costing breaks, also select the Costing Breaks check box. For more information, refer to Costing Breaks. Step 2. Specify the project pegging parameters in the Project Pegging Parameters (tcpeg0100m000) session. Step 3. For each item, specify the peg parameters in the Items - General (tcibd0501m000) session. Select the Inherit Project Peg and/or Mandatory Project Peg check boxes. Project (cost) pegging Project cost pegging affects multiple LN packages. For more information, refer to the main topics as shown in this table:
Package | Topic
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Project | Items - Project (tppdm0505m000). Note: If you are only using Project to record the cost that is generated from pro
Common | Cost peg transfers - borrow/loan and payback To set up borrow/loan and payback transfers Cost peg transfer rules Cost peg change reasons Cost peg transfer settings for specific scenarios Use ATT inventory regardless of lead time fences
Sales | Project pegging in Sales
Enterprise Planning | Using cost peg supplying relationships Cost peg transfers in Enterprise Planning
Manufacturing | Project Pegging in Manufacturing
Procurement | Project pegging in Procurement
Warehousing | Peg distribution in the inbound and inspection processes Peg distribution in the outbound process Peg distribution for cycle counting and adjustment orders Peg distribution - gains and losses Cost peg transfers in Warehousing
Service | Project pegging in depot repair
People | Costs distribution of production order hours – examples
Related topics Linking a CLIN to a project structure Costing Breaks |