| # Cost peg transfers - borrow/loan and payback To handle shortages of project pegged inventory identified during the outbound process, you can use the borrow/loan and payback procedure to temporarily transfer available to transfer (ATT) inventory from other projects with minimum cost impact on either project. The borrow/loan and payback process The borrow/loan and payback process constitutes the temporary transfer of inventory between two projects. LN can temporarily transfer cost pegged items from one project, the lending project, to another, the borrowing project, to fulfill an urgent demand. After the inventory is replenished, the borrowing project transfers the borrowed item quantities back to the lending project. Manual finalization and aging The borrow/loan and payback procedure is carried out automatically, but you can set an aging period or manually intervene to finalize the procedure before the automatic payback is due. Manual finalization is used for individual borrow/loan transfers and aging is used for collective finalization. Manual finalization and aging result in the permanent transfer of the inventory to the borrowing project and a financial compensation to the lending project. Cost aspects Item values can fluctuate between the moments of borrowing and paying back. To prevent that the lending project is affected by cost increases, inventory is paid back at the inventory value at which it was borrowed. Tracking borrow/loan and payback information Various sessions provide insight into the progress of borrow/loan and payback transfers, both logistically and financially. These sessions help you decide whether borrow/loan transfers must be manually finalized, before the payback is due. To set up borrow/loan and payback transfers To use the borrow/loan and payback procedure and/or permanent cost peg transfers, you must set the required parameters and transfer rules. Related topics The borrow/loan and payback process Manual finalization and aging Cost aspects of borrow/loan and payback transfers Tracking borrow/loan and payback transfers To set up borrow/loan and payback transfers Project pegging overview |