| # Project pegging in Procurement To identify costs, demand, and supply for a project, you can implement project pegging and specify the items for which project pegging is required. For more information, refer to Project pegging overview. Note If you want to use project pegging in combination with costing breaks, also select the Costing Breaks check box in the Implemented Software Components (tccom0100s000) session. For more information, refer to Costing Breaks. Project pegging in Procurement includes the pegging of project costs for purchase business objects, such as requisitions, requests for quotation, purchase orders, and purchase (push) schedules. If the item on the business object requires a peg, a peg distribution must be linked to these objects. In a peg distribution, the required quantity of the parent business object is distributed across distribution lines for combinations of project/budget, project element and/or project activity. For example, if a distribution is used to peg the ordered quantity on a purchase order line, the goods are purchased for and the costs are booked to these projects, elements, and activities. A peg distribution cannot be created if the following are applicable for the parent object line: The warehouse is a Project warehouse The project is a PCS project The item is a List item of the type kit, or an Equipment item The warehouse is blank and the item type is Purchased, Manufactured, or List The Default Supply Source is Assembly in the Items - General (tcibd0501m000) session The Configurable check box is selected in the Items - General (tcibd0501m000) session The Schedule Type is Pull Schedule in the Items - General (tcibd0501m000) session The Order Policy is not Anonymous in the Items - Ordering (tcibd2500m000) session The Order System is not Planned in the Items - Ordering (tcibd2500m000) session Inventory handling is By Component for the purchase order line Payment is Pay on Use for the purchase order line The purchase order line is a VMI direct delivery line Generating a peg distribution When a purchase business object line is saved, a peg distribution can be generated only if project pegging is implemented. In the Purchase Peg Distribution (tdpur5100m000) session, a peg distribution can be manually specified or automatically defaulted from other objects. The business object is stored on the distribution line and includes these fields:
Business Object Type for Peg Distribution | Business Object | Business Object Reference
RFQ Line | RFQ number | position/alternative
RFQ Response | RFQ number | position/alternative/bidder
Requisition Line | requisition number | position
Purchase Order Line | order number | position/sequence
Purchase Order Receipt | order number | position/sequence/receipt sequence
Stage Payment Line | order number | position/stage payment line
Purchase Schedule Line | schedule number | position
Purchase Schedule Receipt | schedule number | position/receipt sequence
Commingling pegs If purchase order/schedule lines are project pegged, commingling of pegs is subject to project combination checks. Commingling rules regarding project pegging, which you can specify in Project Pegging under Common, determine if lines with different pegs can be commingled into one purchase order line or purchase schedule. In general, commingling is carried out by planning group, which includes the commingling rules for the linked projects. However, commingling for export license required items is restricted by project. This means that if projects are different, separate purchase order lines or purchase schedules are created. To further restrict commingling, you can specify commingling exceptions, which are the pegs that must be excluded from commingling. Example Project 1 with activity 10 and project 1 with activity 20, both have a requirement for an export licensed item. Without an exception, 1 purchase order line with 2 distribution lines are created. With an exception for one or both of the activities, which means one purchase order line per project peg, 1 purchase order with 2 purchase order lines are created. Note If commingling of pegs is not allowed, a new purchase schedule header must be created when generating schedule lines from Enterprise Planning. Therefore, multiple active schedules with the same item, buy-from business partner, ship-from business partner, purchase office, and warehouse can be available. Handling peg data If the goods are purchased for and the costs are booked to only one project, the peg is visible directly on the purchase object line. When the line is saved, LN automatically writes one distribution line to the peg distribution. Peg fields, quantities, or the ordered amount can be updated on both the parent object line and the distribution line, after which they are synchronized both ways. If more pegs (distribution lines) are specified in the peg distribution, the peg fields are emptied on the parent object line and the quantities or ordered amount are unavailable. The sum of the quantities or ordered amounts on the peg distribution can be updated to the quantities or ordered amount on the parent object line. If the peg distribution's total quantity differs from the quantity on the parent object line, the following question about updating the parent object line is asked: Peg distribution quantity does not match line total. Click OK to update 'Total'. Warehouse receipts For partial warehouse receipts, pegs with the highest priority obtain quantities first. The priority of the peg is based on the required date and required quantity from Enterprise Planning for the purchase line that must be received. The peg with the earliest required date has the highest priority. If no required date and required quantity can be retrieved from Enterprise Planning, this fallback mechanism is applicable: Purchase order lines The priority is based on the dates from the inbound order line peg distribution. Purchase schedule lines The priority is based on the dates from the purchase schedule line peg distribution. Schedule lines are not linked to individual inbound order lines because, for push schedules, goods are received against a blanket warehouse order, which is linked to the schedule header. During the receipt process for a certain quantity, the pegs that match the total quantity to be received for the schedule lines are communicated to Warehousing for use in the receipt process. These schedule lines are communicated by line position and (oldest) planned receipt date. The generated warehouse receipt line peg distribution always is a subset of the (aggregated) peg distribution of the schedule lines. When a receipt is confirmed, the peg distribution (order line), or peg distribution data (schedule line) is copied from the warehouse receipt line to the purchase order/schedule receipt. You cannot update the peg distribution for the purchase order/schedule receipt. If a receipt correction or an inspection is performed for a receipt line in Warehousing, based on the priority in the peg distribution, the peg distribution lines are also updated with the quantity changes. By means of the Warehouse Receipt Distribution Line field, which is communicated by Warehousing, the related distribution lines are updated in the Purchase Peg Distribution (tdpur5100m000) session. Purchase receipts For partial purchase receipts and invoice handling, no priority rules are used. Partial purchase receipts are proportionally distributed to the peg distribution lines. You cannot update pegging information on the purchase receipt. However, if a parent object line and linked distribution line(s) include an ordered amount and no ordered quantity, you can change the ordered amount after receipt in the Change Price and Discounts after Receipt (tdpur4122m000) session. When the received amount is changed for the order line, the amount change is proportionally distributed to the peg distribution lines. Note Planned inventory transactions, material transactions, and (financial) integration transactions are not logged on parent object line level, but on peg distribution level. Therefore, transactions are booked by peg. If project pegging is implemented but a project peg is not mandatory for an item, you can optionally specify a peg (distribution). If a purchase requisition line is generated from a catalog and the selected item requires a mandatory peg, the requisition line can be inserted without peg distribution linked. LN checks if a purchase distribution is available only when the requisition is submitted for approval. When a bidder is linked to an RFQ, a record is inserted in the RFQ Responses (tdpur1506m000) session, but no peg distribution is linked yet. The RFQ line's peg distribution is copied to the response line when its status becomes Accepted. A peg distribution that is linked to a response line with the Accepted status, cannot be updated. If landed costs are linked to an order/schedule line with a peg distribution, the landed costs are proportionally calculated by peg and written to the Integration Transactions (tfgld4582m000) session, based on the peg distribution that is linked to the order/schedule line. If an item that requires a peg must be invoiced by supplier stage payments, a peg distribution is linked to a Stage Payment Line. For a combination of purchase order line/stage payment line, the Amount of the stage payment line is distributed across the distribution lines. The peg distribution is created when the stage payment line is approved and is deleted when the stage payment line is unapproved. For more information, refer to Supplier stage payments. Backorder lines are handled as independent order lines. You can change, add, and delete peg distribution lines for a backorder line. The backorder line pegs need not be equal to the parent object line pegs. When returning pegged goods, specific conditions are applicable. For more information, refer to Purchase return orders. Related topics Project pegging overview Costing Breaks Using cost peg supplying relationships Commingling purchase orders Supplier stage payments Purchase return orders Push schedules Receipts on push schedule lines |