| # Peg distribution in the inbound and inspection processes Receiving project pegged goods into a warehouse results in inventory transactions that are based on the underlying peg distribution of the related receipt line. Inbound and Pegging This results in an update of the pegged inventory levels in the Project Pegged Inventory (whwmd2560m000) session. The planned quantity of the inbound order line is updated in the Planned Inventory Transactions (whinp1500m000) session, which also includes the peg data. Planned inventory transactions are also generated for each peg. If the receipt line is marked for inspection, the received quantity is blocked. Depending on the parameter settings, the quantity can also be blocked for usage by Enterprise Planning. Any quantity, rejected (or destroyed) during receipt inspection are assigned to the pegs having the latest required date to make sure that the approved items are assigned as much as possible to the pegs with the earliest required date in order to meet the demand in time. Project Warehouses For a ship-from or ship-to warehouse that is a Project or a Project-WIP warehouse; no inbound/ outbound order line peg distribution is created. In that case, the project fields on the inbound/ outbound order lines are used. When however, an inbound/ outbound order line is created for a 'Project Pegged' item related to a Normal warehouse, a peg distribution is applicable and the project fields on the inbound/ outbound order lines are disabled. Inbound Order Line Peg Distribution For an inbound order line, the peg distribution data can only be viewed and not maintained. In case of manual transfer orders, the peg distribution can only be maintained (manually) on the outbound order line. When an outbound transfer line is saved after the peg distribution is modified, the inbound transfer order line peg distribution changes accordingly. Cost and Service Items For order lines with a cost or service item, also a peg distribution can exist, but assigning the received quantities of these item types to the peg lines is always performed pro-rata. This peg distribution data is only essential for proper cost allocation to projects/ pegs and has no logistic purpose as these items are non-physical entities. When ordering zero pieces of a certain cost/ service item, also a peg distribution data can be created, consisting of only one peg line. Warehouse Receipts Receipt Line Peg Distribution When confirming a receipt line, LN creates peg distribution under the receipt line. The sequence of assigning received items to pegs is based on the earliest required dates and required quantities retrieved from Enterprise Planning (EP). In case an inbound line contains multiple pegs and the received quantity deviates from the ordered quantity, the received quantity must be apportioned to the peg distribution lines according to the priority determined by the 'Earliest Required Date' that is defined in Enterprise Planning (EP). The peg distribution lines are generated when the receipt is confirmed. Sometimes, the order quantity of the order exceeds the total required quantity of the item, resulting in an excess quantity. The excess is determined in Enterprise Planning (EP), in which case the distribution lines have no demand order reference and an empty required date. Any excess on top of the required quantity (not exceeding the ordered quantity) is assigned to the pegs in peg line sequence. Any excess that is received on top of the ordered quantity is distributed to the peg lines proportionally based on the ratio of ordered quantities. Update Planned Inventory Transactions / Inventory Levels When confirming a receipt line, the Planned Inventory Transactions are updated, based on the received quantities of the corresponding receipt line peg distribution. So, the planned inventory transactions are recorded on project peg level. When confirming a receipt line, the Inventory on Hand is increased in the Warehouse - Item Inventory (whwmd2515m000) session. Similarly, the Inventory on Hand must be increased in the Project Pegged Inventory (whwmd2560m000) session, based on the received quantities of the corresponding receipt line peg distribution. Assigning Received Quantities to Project Pegs In case of a full, partial or over receipt on an expected inbound order line containing multiple peg lines, LN decides the pegs to which the received quantity is assigned, based on the following sequence: The pegs having the earliest required date are received first, until all required quantities are fulfilled. The pegs having unfulfilled ordered quantities (and no required quantities anymore) are received in sequence of peg line. Any excess on top of the ordered quantity is assigned to the pegs proportionally. When the full order line quantity is received on the linked receipt line, for each order line peg a receipt line is created and the total of the received quantities per peg line is equal to the ordered quantity. Back Orders For a confirmed receipt line, if the received quantity is less than the expected quantity, the difference must be resolved in Purchase Control by processing the created back order (if allowed). This back order is received on another inbound line with a peg line distribution for the pegs that are not fully received. When the back order line is received and confirmed, a receipt line peg distribution is created for the remaining pegs received. Receipt Corrections You can use the Receipt Correction (whinh3121s000) session, to change the confirmed received quantity. Increasing the already received quantity leads to positive receipt correction. The additional received quantity is assigned to the pegs in the same way as the initial receipt. The pegs having the earliest required date are received first. The pegs having unfulfilled ordered quantities are received in sequence of peg line. Any excess on top of the ordered quantity is assigned to the pegs proportionally. Decreasing the already received quantity leads to negative receipt correction. When the received quantity is decreased, the change in received quantity is distributed across the received pegs in the following way: Any excess on top of the ordered quantity is decreased proportionally. The received excess on top of the required quantity, but less than the ordered quantity is decreased in sequence of the peg line. Any remaining received quantity is decreased in the sequence of the latest required date. Inbound Procedure - Inspection The Warehouse Inspections (whinh3122m000) session does not have an own line peg distribution. Registration of inspected/ rejected quantities takes place in the peg distribution available under the receipt lines which roll up into the inbound order line peg distribution. Generally, inventory subject to warehouse inspections remains blocked. Similarly, the Project Pegged Inventory (whwmd2560m000) to be inspected remains blocked. After processing the inspection, the planned inventory transactions and the inventory levels are updated accordingly, by peg level. Approved quantities are assigned first to peg lines having the earliest required date. Rejected/destroyed quantities are assigned first to the peg lines having the latest required dates. In case of excess quantities, the excess must be utilized first. The rejected/ destroyed quantities are distributed based on the actual received quantities of the receipt line (not on the total values of the related inbound order line). The updated receipt line peg information is rolled up to the level of the inbound line distribution. No Handling of Rejected Goods If the Handle Rejected Goods check box is not selected in the Warehouses (whwmd2500m000) session, rejected goods become supplier owned and are not added to the inventory, which means the costs must be removed from the project pegs. Handling Rejected Goods (Inventory Disposition = No) In this scenario, the warehouse parameter Handle Rejected Goods is selected and Inventory Disposition check box is not selected in the Inventory Handling Parameters (whinh0100m000) session.. Rejected goods become supplier owned, which means the costs must be removed from the project pegs. Rejected Inventory (whwmd2570m000) records are created for rejected quantities on a purchase order (or purchase schedule). The Receipt Line Peg Distribution (whinh3528m000) session can be started from the Rejected Inventory (whwmd2570m000) but the field In Rejected Inventory in the Receipt Line Peg Distribution (whinh3528m000) session is no longer visible because the peg details of the rejected inventory no longer exist, so that the rejected items become anonymous (unpegged) inventory. The rejected inventory can be accepted, destroyed or returned from the Rejected Inventory (whwmd2570m000) session. Handling Rejected Goods (Inventory Disposition = Yes) In this scenario, the warehouse parameter Handle Rejected Goods check box and the Inventory Disposition check box in the Inventory Handling Parameters (whinh0100m000) session are selected. The field In Rejected Inventory in the Receipt Line Peg Distribution (whinh3528m000) session is populated in the pegs, because the peg details still exist for the rejected items and the items do not become anonymous (unpegged) inventory. The pegs are updated while handling the rejected inventory. The quantity In Rejected Inventory must be decreased for each accepted, destroyed (scrapped) or returned inventory. Outbound Procedure - Inspections The Warehouse Inspections (whinh3122m000) session does not have own line peg distribution. There is also no specific peg distribution related to the outbound advice. Inspected/ rejected quantities are registered in the Outbound Order Line Peg Distribution (whinh2190m000) session. Generally, inventory scheduled for outbound inspections remains blocked. Similarly, the Project Pegged Inventory (whwmd2560m000) to be inspected remains blocked. After processing the inspection, the planned inventory transactions and the inventory levels are updated accordingly, by peg level. Update Outbound Order Line Pegs The To be Inspected Quantity on the Outbound Order Line Peg Distribution (whinh2190m000) session, reflects the advised peg quantity that is already released and is subject to inspection. The following conditions are applicable to handle the outbound order line pegs during warehouse inspections: For each released outbound advice, an inspection line is created. At this point, the To be Inspected Quantity is defined and apportioned to the pegs in sequence of earliest required date. When the advised quantity of the earliest peg is fully assigned as To be Inspected Quantity, the remainder of the released quantity is assigned to the To be Inspected Quantity of the next peg with the earliest required date and so on. Any approved quantities are assigned to the pegs in sequence of the earliest required date. Any rejected quantities are assigned to the pegs in sequence of latest required date. But in case of over delivery (Advised quantity > Ordered Quantity), the excess must be consumed first in sequence of earliest required date. The To be Inspected Quantity of the pegs is blocked for inspection. While processing an inspection record, any approved or rejected quantity is apportioned only to those pegs that have a To be Inspected Quantity. This To be Inspected Quantity is consumed by the approved and rejected quantities assigned to the peg. Effectively, the blocked quantity is decreased for the quantity processed. |