| # Cost peg transfers - overview Cost peg transfer functionality enables the transfer of cost between two different pegs (pegged to unpegged and vice versa). The cost peg transfers do not physically move the inventory but only transfer the cost of the inventory. Cost peg transfers are performed within the same warehouse. It is not possible to transfer the goods across warehouses. When the cost peg transfer is processed, the changes are permanent (when excess inventory is moved). However, the inventory can be transferred back.. The source peg and the target peg can be either an unpegged inventory (no project, element and activity filled) or a pegged inventory (belonging to a project, element and/ or activity). For a cost peg transfer line, either the source peg or the target peg must be specified. The cost peg transfer also changes the allocations within the inventory - Transfer Allocated (from peg) and Transfer on Order (to peg). Cost peg transfers can be generated from different sources within LN. These are the possible origins for the cost peg transfers: Enterprise Planning Outbound Advice Manual Mass Cost Peg Transfer Enterprise Planning The cost peg transfers are created in Enterprise Planning during the planning runs and can be transferred to Warehousing by the user or by LN. The cost peg transfers are generated to handle shortage, using the Project Pegged Inventory (whwmd2560m000) session, identified during the planning run. When you process the cost peg transfer the cost is transferred from the source peg to the target peg. Financial transactions are created during the processing of the cost peg transfer. Outbound Advice Cost peg transfers can be created to handle shortages during the generate outbound advice process. When shortages occur, LN first searches for the open cost peg transfer and links it to the outbound advice. During the Generate Outbound Advice process, there can be shortages in project pegged inventory. When shortages occur, LN searches for a cost peg transfer, and links it to the outbound advice. The Cost Peg Transfer is processed when the outbound advice is picked or can be processed manually. In case the shortage is not met, a cost peg transfer is created if Available Excess or Available to Transfer (ATT) inventory is present for a different peg. The Available Excess and Available to Transfer (ATT) inventory is transferred to the pegs with shortage of inventory. Manual LN allows you to manually create cost peg transfers. These are not created by specific process. The user can determine which pegged inventory must be transferred. Mass Cost Peg Transfers Mass cost peg transfers are created by executing a separate process that allows the user to execute a cost peg transfer from a source peg to a target peg. Processing Cost Peg Transfer While processing the cost peg transfer, LN: Checks the inventory level of the source peg. In case of insufficient inventory, the cost peg transfer is not processed. Moves the quantity of the cost peg transfer from the source peg to the target peg. Creates financial transactions for the cost peg transfer. The cost peg transfer can be processed manually or automatically during the picking process. Manual processing can be performed using an option or by a batch session available across all the cost peg transfer sessions. Changes on the cost peg transfer LN allows you to modify the cost peg transfer of all origins. In case of insufficient inventory, the cost peg transfers are not processed. The cost peg transfer that is linked to an outbound advice cannot be modified. In case the cost peg transfer quantity increases, while the cost peg transfer is modified, the Available Excess and the Available to Transfer of the source peg no longer meets the requirement, LN checks for the inventory available on the source peg. If inventory is available, LN displays a warning message that the transfer includes the goods that are not moved from Available Excess and the Available to Transfer inventory. In case the inventory is not sufficient, LN displays an error message. Changes on the outbound advice In case the advised quantity is increased on the outbound advice, the increased quantity must also be advised and the cost peg transfers linked to the outbound advice are also updated (if there is enough inventory) or a new cost peg transfer is created to match the advised quantity. Example Increase the advised quantity: When you change the advised quantity on the outbound advice from 20 to 25:
Cost Peg Transfer Lines (whinh145)
Cost Peg Transfer | From Peg | To Peg | Quantity | Required Date | Processed
--- | --- | --- | --- | --- | ---
TRF000001 | AAA-01 | BBB-02 | 8 (5+3) | 31/11/2011 | No
The project pegged inventory:
Project Pegged Inventory (whwmd260)
Peg | on order | on Hand | Allocated | Location Allocated | Available Excess | Available to Transfer | Transfer Allocated | Transfer on order
--- | --- | --- | --- | --- | --- | --- | --- | ---
AAA-01 | 0 | 20 | 10 | 12 (10+2) | 2 (5-3) | 0 | 8 (5+3) | 0
BBB-02 | 0 | 5 | 10 | 13 (10+3) | 0 | 0 | 0 | 8 (5+3)
Outbound Advice is updated:
Outbound Advice (whinh225)
Outbound Advice | Advised Quantity
--- | ---
1 | 25 (20+5)
The Outbound Order Line Cost Peg Distribution:
Outbound Order Line Cost Peg Distribution (whinh290)
Peg | Ordered Quantity | Required Quantity | Need Date | Advised Quantity
BBB-02 | 10 | 10 | 31/11/2011 | 13 (10+3)
AAA-01 | 10 | 10 | 01/12/2011 | 12 (10+2)
Decrease the Advised Quantity When you change the advised quantity from 20 to 14: The cost peg transfer:
Cost Peg Transfer Lines (whinh145)
Cost Peg Transfer | From Peg | To Peg | Quantity | Required Date | Processed
--- | --- | --- | --- | --- | ---
TRF000001 | AAA-01 | BBB-02 | 5 | 31/11/2011 | No
The cost peg transfer remains unchanged, because the decrease in advised quantity is removed from the location allocation based on the latest required date. The project pegged inventory:
Project Pegged Inventory (whwmd260)
Peg | on order | on Hand | Allocated | Location Allocated | Available Excess | Available to Transfer | Transfer Allocated | Transfer on order
--- | --- | --- | --- | --- | --- | --- | --- | ---
AAA-01 | 0 | 20 | 10 | 4 | 5 | 0 | 5 | 0
BBB-02 | 0 | 5 | 10 | 10 | 0 | 0 | 0 | 5
Outbound advice is updated:
Outbound Advice (whinh225)
Outbound Advice | Advised Quantity
--- | ---
1 | 14 (20-6)
The Outbound Order Line Cost Peg Distribution:
Outbound Order Line Cost Peg Distribution (whinh290)
Peg | Ordered Quantity | Required Quantity | Need Date | Advised Quantity
--- | --- | --- | --- | ---
BBB-02 | 10 | 10 | 31/11/2011 | 10
AAA-01 | 10 | 10 | 01/12/2011 | 4 (10-6)
Splitting the cost peg transfer During the Generate Outbound Advice run, shortages if identified, are met using the existing cost peg transfers. The two scenarios are: Quantity on the cost peg transfer is more than the shortage quantity Quantity on the cost peg transfer is less than the shortage quantity When the cost peg transfer quantity is more than the shortage quantity, the total cost peg transfer quantity is not utilized. A new cost peg transfer is created (with the same origin) with quantity equal to the shortage quantity. Consequently, the quantity of the original cost peg transfer is reduced. When the cost peg transfer quantity is less than the shortage quantity, the cost peg transfer must be updated with the outbound advice. LN checks for other cost peg transfers that can be used to handle the shortage. Example Starting Point
Project Pegged Inventory (whwmd260)
Peg | on order | on Hand | Allocated | Location Allocated | Available Excess | Available to Transfer | Transfer Allocated | Transfer on order
--- | --- | --- | --- | --- | --- | --- | --- | ---
AAA-01 | 0 | 20 | 10 | 0 | 0 | 0 | 10 | 0
BBB-02 | 0 | 5 | 10 | 0 | 0 | 0 | 0 | 10
An order is created with this outbound order line cost peg distribution data:
Outbound Order Line Cost Peg Distribution (whinh290)
Peg | Ordered Quantity | Required Quantity | Need Date | Advised Quantity
--- | --- | --- | --- | ---
AAA-01 | 10 | 10 | 31/11/2011 | 0
BBB-02 | 10 | 10 | 01/12/2011 | 4 (10-6)
This Cost Peg Transfer is present, origin can be (Enterprise Planning, Manually, Mass Cost Peg Transfer):
Cost Peg Transfer Lines (whinh145)
Cost Peg Transfer | Order Line | From Peg | To Peg | Quantity | Required Date | Processed
--- | --- | --- | --- | --- | --- | ---
TRF00001 | 10 | AAA-01 | BBB-02 | 10 | 10/12/2011 | No
As per the data, there is a shortage of five pieces for the Peg BBB-02 which can be handled with the Cost Peg Transfer TRF000001. The outbound advice is created with this data:
Cost Peg Transfer Lines (whinh145)
Cost Peg Transfer | Order Line | From Peg | To Peg | Quantity | Required Date | Processed
--- | --- | --- | --- | --- | --- | ---
TRF00001 | 10 | AAA-01 | BBB-02 | 5 (10-5) | 10/12/2011 | No
TRF00001 | 20 | AAA-01 | BBB-02 | 5 | 01/12/2011 | No
For Cost Peg Transfer Line 20 the Required Date has been changed to match the Outbound Order Line Cost Peg Distribution record. For the Cost Peg Transfer TRF000001 line 20 of the Outbound Advice is also populated. Within the inventory table, this data is updated:
Project Pegged Inventory (whwmd260)
Peg | on order | on Hand | Allocated | Location Allocated | Available Excess | Available to Transfer | Transfer Allocated | Transfer on order
--- | --- | --- | --- | --- | --- | --- | --- | ---
AAA-01 | 0 | 20 | 10 | 10 | 0 | 0 | 10 | 0
BBB-02 | 0 | 5 | 10 | 10 | 0 | 0 | 0 | 10
Only the location allocated is changed, because the cost peg transfer is already present before the outbound advice has been created. Splitting Cost Peg Transfer does not influence the Transfer Allocated and the Transfer on Order. Project Pegged Inventory (whwmd2560m000) session. Related topics Cost Peg Transfers (whinh1140m000) Cost Peg Transfer Lines (whinh1145m000) |