| # Project pegging overview A production order can be used to meet multiple demands from multiple projects and hence requires pegging distribution at the order level and at order line levels (such as estimated materials, production planning). This process is called (cost) pegging and the attributes are called pegs. If an item is project pegged, you can track the costs at the project, activity, and element level through the complete product life-cycle. To perform proper (cost) allocation, tracking and tracing, inventory registration, and supply, pegging information must be added to items, inventory, and transactions throughout the entire goods flow, from ordering/receiving to issue/consumption. Because item lines can be split into multiple cost pegs, a peg distribution level is required below the item line. The main purpose of these cost pegs is cost distribution and not the physical movement of items. Project pegging setup Step 1. Implemented Software Components (tccom0100s000) Select the Project Pegging check box in the Implemented Software Components (tccom0100s000) session. Step 2. Project Pegging Parameters (tcpeg0100m000) Specify the project pegging parameters in the Project Pegging Parameters (tcpeg0100m000) session. Step 3. Items - General (tcibd0501m000) Specify the peg parameters by item in the Item - General (tcibd0101s000) session. Select the Inherit Project Peg and/or Mandatory Project Peg check boxes. Cost peg distributions Cost peg distributions are used in these LN packages: Manufacturing For more information, refer to Pegging in Manufacturing - Overview Procurement For more information, refer to Project pegging in Procurement. Warehousing For more information, refer to Cost peg transfers - overview and Peg distribution for cycle counting and adjustment orders. Service For more information, refer to Project pegging in depot repair. People For more information, refer to Costs distribution of production order hours – examples. |