Peg distribution for cycle counting and adjustment orders

The implementation of the project pegging functionality impacts the cycle counting and adjustment orders process due to inventory variances.

Cycle Counting Orders

When the project pegging functionality is implemented, LN creates a peg distribution line before the cycle counting order is processed. The peg distribution line can also be a blank peg. The remaining quantity or the total quantity is processed as unpegged.

Note

Blank pegs are not allowed if the Mandatory Project Peg check box in the Items - General (tcibd0501m000) session is selected.

After the cycle counting orders are generated, the proposed peg distribution can be generated only if the warehouse is not a project warehouse and the project pegging functionality is implemented. Use the Cycle Counting Order Line Peg Distribution (whinh5107m000) session to generate peg distribution. If the proposed peg distribution is not correct, the processing of the cycle counting order is discontinued. LN displays a message for the same. In case the proposed peg distribution is incomplete, LN creates the proposed peg distribution with the remaining data and is saved in the Cycle Counting Order Line Peg Distribution (whinh5107m000) session.

During the processing of cycle counting orders, the proposed peg distribution is verified. LN creates the proposed peg distribution, if it is not created completely. The data can be viewed in the Cycle Counting Order Line Peg Distribution (whinh5107m000) session.

Adjustment Orders

When the project pegging functionality is implemented, LN creates a peg distribution line before the adjustment order is processed. The peg distribution line can also be a blank peg. The remaining quantity or the total quantity is processed as unpegged.

Note

Blank pegs are not allowed if the Mandatory Project Peg check box in the Items - General (tcibd0501m000) session is selected.

After the adjustment orders are generated, the proposed peg distribution can be generated only if the warehouse is not a project warehouse and project pegging functionality is implemented. Use the Adjustment Order Line Peg Distribution (whinh5127m000) session to generate peg distribution. If the proposed peg distribution is not correct, the processing of the adjustment order is discontinued. LN displays a message for the same. In case the proposed peg distribution is incomplete, LN creates the proposed peg distribution with the remaining data and is saved in the Adjustment Order Line Peg Distribution (whinh5127m000) session.

During the processing of an adjustment order, the proposed peg distribution is verified. LN creates the proposed peg distribution, if it is not yet created completely. The data can be viewed in the Adjustment Order Line Peg Distribution (whinh5127m000) session.

Automatically generated adjustment orders

When adjustment orders are generated as part of another process in LN, for example, rejection of goods during inspection, the peg distribution is created by the other process and is processed by LN.

Gains and Losses

When a pegged balance is impacted as a result of cycle counting or an inventory adjustment, the inventory at the peg level must also be adjusted. Increase in inventory quantity at a peg level is referred to as a Gain and a decrease in the inventory quantity is referred to as a Loss. The Gain and Loss balances can be viewed in the Project Pegged Inventory (whwmd2560m000) session. The pegged inventory that is affected by the gain or loss in the inventory is also recorded. LN applies a priority sequence when assigning gains and losses to the project cost pegs.

Priority sequence for Gains

For pegs that have been previously subjected to a loss:
1. Pegs without excess and without Available to Transfer (ATT) and with an economic shortage and in sequence of earliest requirement date. LN considers economic shortage quantity.
2. Pegs without excess and without Available to Transfer (ATT) and without an economic shortage (in alphabetical order). LN considers full quantity for the peg.
3. Pegs without excess and with Available to Transfer (ATT) (in alphabetical order). LN considers full quantity for the Peg.
4. Pegs with excess (in alphabetical order). LN considers full quantity for the Peg.
For pegs that have not been previously subjected to a loss:
1. Pegs without excess and without Available to Transfer (ATT) and with an economic shortage and in sequence of earliest requirement date. LN considers economic shortage quantity.
2. Pegs without excess and without Available to Transfer (ATT) and without an economic shortage (in alphabetical order). LN considers full quantity for the peg.
3. Pegs without excess and with Available to Transfer (ATT) (in alphabetical order). LN considers full quantity for the Peg.
4. Pegs with excess (in alphabetical order). LN considers full quantity for the Peg.
Inventory associated with a 'Blank peg'.

Priority sequence for Losses

For pegs that have previously been subject to a gain. In case of multiple Pegs, the pegs are selected in alphabetical order.
1. LN checks for the pegs with excess (in alphabetical order) and considers the excess quantity.
2. LN checks for the pegs with Available to Transfer (ATT) (in alphabetical order) and considers the Available to Transfer (ATT) quantity.
3. LN checks for the pegs without Excess and without Available to Transfer (ATT) in sequence of earliest requirement date and considers full quantity for the Peg.
Inventory associated with a Blank peg.
Pegs that have not previously been subject to a gain:
1. LN checks for the pegs that have an excess inventory balance greater than zero (in alphabetical order) and considers the excess quantity.
2. LN checks for the pegs that have an Available to Transfer (ATT) balance (in alphabetical order) and considers the Available to Transfer (ATT) quantity.
3. LN checks for the pegs without Excess and Available to Transfer (ATT) in sequence of earliest requirement date and considers full quantity for the Peg.

Example

Assumptions:

Pegs are in the same warehouse
Pegs are for the same item
Peg is a combination of Project, Element and Activity
The Project pegged inventory table is up to date. If not, an update is executed with a loss of one for every step.

Starting Point

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
1	PRO1	ELO1	ACT01	1	1	0	0	0
2				1	0	0	0	0
3	PRO2	ELO2	ACT02	1	0	0	1	0
4	PRO3	ELO3	ACT03	1	0	0	0	1
5	PRO4	ELO4	ACT04	1	0	0	0	1
6	PRO5	ELO5	ACT05	1	0	0	0	0

A loss of one results in the removal of Peg Line 1 as the first gains are decreased.

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
2				1	0	0	0	0
3	PRO2	ELO2	ACT02	1	0	0	1	0
4	PRO3	ELO3	ACT03	1	0	0	0	1
5	PRO4	ELO4	ACT04	1	0	0	0	1
6	PRO5	ELO5	ACT05	1	0	0	0	0

A loss of one results in the removal of Peg Line 2 as the blank peg is removed.

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
3	PRO2	ELO2	ACT02	1	0	0	1	0
4	PRO3	ELO3	ACT03	1	0	0	0	1
5	PRO4	ELO4	ACT04	1	0	0	0	1
6	PRO5	ELO5	ACT05	1	0	0	0	0

Then a loss of one removes the Peg Line 3 as an excess quantity exists.

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
4	PRO3	ELO3	ACT03	1	0	0	0	1
5	PRO4	ELO4	ACT04	1	0	0	0	1
6	PRO5	ELO5	ACT05	1	0	0	0	0

Then a loss of one removes the Peg Line 4 as it has ATT and it is alphabetically before line 5.

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
5	PRO4	ELO4	ACT04	1	0	0	0	1
6	PRO5	ELO5	ACT05	1	0	0	0	0

The next loss removes Peg Line 5 as it has ATT.

Project Pegged Inventory (whwmd260)
Peg Line	Project	Element	Activity	On Hand	Inventory Gains	Inventory Losses	Excess	ATT
6	PRO5	ELO5	ACT05	1	0	0	0	0

The last loss removes Peg Line 6 which is the last scenario of a decreasing peg inventory.