| # Demand pegged supply orders If insufficient inventory is available, supply orders can be generated and demand pegged to the demand order requesting allocated inventory. This means the supply order receives the same specification as the demand order. Allocated planned inventory transactions, containing the specifications, are created for the supply orders. Supply orders for demand orders are generated or manually created from these origins: Order planning runs in Enterprise Planning. For more information, refer to Order planning, an overview. Sales (demand) orders or schedules in Sales. Demand peg supply orders in Procurement and Sales The following supply orders can be generated: Purchase orders in the Generate Purchase Orders (tdsls4241m000) session. Production orders in the Generate Production Orders (tdsls4243m000) session. Transfer orders in the Transfer Order for Sales Order (tdsls4242s000) session. Supply orders can be created as follows from the Sales Order Lines (tdsls4101m000) session, or the Sales Order Planned Delivery Lines (tdsls4101m100) session: Manually from the stock shortage menu When an inventory shortage occurs on the order line, the Inventory Shortage Menu (tdsls4830s000) session starts. Select Generate Purchase Order, Generate Production Order, or Generate Transfer Order to create a supply order in the relevant session. Manually from the appropriate menu When an inventory shortage occurs on the order line, you can click Generate Purchase Order, Generate Production Order, or Generate Transfer Order from the appropriate menu to create a supply order in the relevant session. Automatically at sales order line entry When an inventory shortage occurs, a supply order is automatically generated if the relevant session is linked as an automatic activity to the order type in the Sales Order Type (tdsls0694m000) session. Note The Inventory Shortage Menu (tdsls4830s000) session, which can appear for a manually entered sales order, is started only if the total quantity of the allocated inventory and/or demand pegged supply orders is less than the sales order line's ordered quantity. During BOM explosion of the production order, LN can propagate the demand peg to orders for components depending on the Demand Peg Propagation field in the Bill of Material (tibom1110m000) session. Demand peg supply orders in Warehousing Warehousing parameter settings determine whether: Items received by supply orders become identifiable in inventory through handling units generated for the receipt line of the supply order when the receipt is confirmed. These handling units obtain specifications with characteristics identical to those of the supply order. Specific handling units or anonymous allocated inventory is issued when generating an outbound advice for the demand order. LN issues inventory for which the specification characteristics match those of the outbound order lines of the demand order. For more information, refer to Inventory allocation levels. Demand peg supply purchase orders and schedules A purchase order/schedule is a source of supply for items. Purchased items can be demand pegged to an allocated demand by a specification. During receipt of the item, the characteristics of the specification are copied to the inventory record, which allocates this inventory to the specific demand. Purchase orders A purchase order line can be demand pegged if it is generated from the following origins: EDI The purchase order line and related specification information is communicated through electronic data interchange (EDI) if the Supply Planning by Supplier check box is selected in the Planning Terms and Conditions (tctrm1135m000) session. As a result, the Demand Pegging Type in the Demand Pegging Terms and Conditions (tctrm1165m000) session determines the specification's appearance on the purchase order line. Sales The purchase order is generated in the Generate Purchase Orders (tdsls4241m000) session. If a specification is linked to the sales order and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the sales order is copied to the purchase order line. EP The purchase order is generated from the Transfer Planned Orders (cppat1210m000) session. If a specification is linked to the planned order and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned order is copied to the purchase order line. INH The purchase order is generated from the Generate Orders (TPOP) (whinh2201m000) session. If a specification is linked to the planned inventory transaction and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned inventory transaction is copied to the purchase order line. Warehousing Receipt The purchase order line is generated automatically for an unexpected warehouse receipt. The specification is copied from the receipt in Warehousing. SFC The (subcontracting) purchase order line is created from the Generate Subcontracting Purchase Documents (tisfc2250m000) session for a subcontracted operation on a production order. The specification is copied from the Estimated Materials (ticst0101m000) session in Manufacturing to the Purchase Order Material Supply Lines (tdpur4116m000) session in Procurement. Subcontracting Purchase Order The (subcontracting) purchase order line is created from the Generate Supply Orders for Subcontracting (tdpur4216m000) session for an order controlled/single system. The specification from the Purchase Order Material Supply Lines (tdpur4116m000) session is copied to the purchase order line. Manual For manually entered purchase orders, you can only create a specification in a specific vendor managed inventory (VMI) scenario and a specific subcontracting scenario. Before you can manually enter a purchase order for these scenarios, the following check boxes must be selected: Supply Planning by Supplier in the Planning Terms and Conditions (tctrm1135m000) session. Demand Pegging Required in the Demand Pegging Terms and Conditions (tctrm1165m000) session. Both scenarios also require specific settings before you can manually enter purchase orders: VMI scenario On the purchase order line, the Payment field must be Pay on Receipt or Pay on Use. In the Planning Terms and Conditions (tctrm1135m000) session, the Send Reference to Supplier check box must be selected. In the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type must be Internal Reference Based. Subcontracting scenario On the purchase order line, the Payment field must be No Payment. In the Demand Pegging Terms and Conditions (tctrm1165m000) session, the Demand Pegging Type must be Customer Based or Customer Reference Based. Note If the purchase order line is a return order line, the specification of the original purchase order line is copied to the return order line. Purchase schedules A purchase schedule line can be demand pegged if it is generated from: INH The purchase schedule is generated from the Generate Orders (TPOP) (whinh2201m000) session. If a specification is linked to the planned inventory transaction and the Supply Planning by Supplier check box is cleared in the Planning Terms and Conditions (tctrm1135m000) session, the specification of the planned inventory transaction is copied to the purchase schedule line. Subcontracting Purchase Order The (subcontracting) purchase schedule line is created from the Generate Supply Orders for Subcontracting (tdpur4216m000) session for an order controlled/single system. The specification from the Purchase Order Material Supply Lines (tdpur4116m000) session is copied to the purchase schedule line. Note For push schedules, specifications are not used. Related topics Demand pegging overview Inventory allocation levels Order planning, an overview Overview of terms and conditions Vendor managed inventory Overview of subcontracting |