Cost peg transfers - borrow/ loan - payback process

When an item in inventory is linked to and demanded by a specific project cost peg, you can pick this item from a different project cost peg. In such cases, LN generates a 'temporary' cost peg transfer. This process can also be termed as Borrow/ Loan & Payback and can be applied using extensive rule settings.

Initially, the borrowed inventory is registered with the lending project cost peg A, but is transferred and issued to project cost peg B; depending on the rule settings, the inventory is only borrowed. The borrowing project cost peg B must resupply the lending project cost peg A to replenish the inventory. This takes place when new items for borrowing items for the project cost peg B are received in the warehouse as a result of the purchase order initiated by Enterprise Planning to meet the demand for project cost peg B.

A temporary cost peg transfer is created and is applicable:

  • If there is an urgent demand for a specific item on the lending project cost peg.
  • If the Use Available to Transfer (ATT) check box is selected in the Cost Peg Transfer Rules (tcpeg1100m000) session.
  • If the Use Available to Transfer (ATT) check box is selected in the Planning Parameters (cprpd0100m000) session.
  • If the Borrow/Loan and Payback check box is selected in the Project Pegging Parameters (tcpeg0100m000) session.

Temporary cost peg transfers are not applicable:

  • If excess inventory (instead of ATT inventory) is transferred between 2 cost pegs.
  • In case of unpegged inventory.

The Cost Peg Transfer Type must be determined from the Cost Peg Transfer Rules (tcpeg1100m000) session based on the lending project cost account (PCA).

The temporary cost peg transfers can be created only by the generate outbound advice ( Generate Outbound Advice (whinh4201m000) session) activity.

The borrow/ loan - payback process includes:

  • Generating outbound advice
  • Generating cost peg transfers
  • Release outbound advice
  • Processing cost peg transfer
  • Generating payback lines (during warehouse receipt) for replenishment of the inventory
To process the cost peg transfers of type borrow/ loan.

Complete the following steps to process the cost peg transfers of the type borrow/ loan - payback:

  1. Define cost peg transfer rules
    • In the Cost Peg Transfer Rules (tcpeg1100m000) session, define the cost peg transfer rules for a specific planning group.
    • Specify the Planning Group for which rules must be defined. Also specify the Project, Element, Activity, Transfer In, Transfer Out.
    • Select the Use Available to Transfer check box to enable the borrow/ loan functionality and LN sets the Cost Peg Transfer Type to Borrow/Loan.
  2. Create a sales order
    • In the Sales Order - Lines (tdsls4100m900) session, specify the Buy-from Business Partner, Order, Order Type, Purchase Office, Planned Receipt Date to create the sales order. LN generates the order number.
  3. Create order lines
    • In the Sales Order - Lines (tdsls4100m900) session, in the order lines pane, specify the item, ordered quantity, price, planned delivery date, project, element, activity.
  4. Approve the order
    • On the Actions menu, click Approve to approve the order.
  5. Print/Release the Order
    • In the Sales Order - Lines (tdsls4100m900) session, select the order line. On the References menu for the order lines, click Status. The Sales Order Line Status (tdsls4534s000) session opens.
    • LN executes the activities set to Automatic.
    • Execute the activities that are not processed by LN.
    • In the Sales Order Line Status (tdsls4534s000) session, click Execute to execute the activities defined for the order in the Sales Order Type - Activities (tdsls0694m000) session.
    • Click Execute to Release the Sales Orders to Warehousing.
    • On the Monitor tab, select the order line. On the References menu, click Inbound/Outbound Status. The Outbound Line Status Overview (whinh2129m000) session opens with the list of activities that must be executed.
  6. Generate Outbound Advice
    • In the Outbound Line Status Overview (whinh2129m000) session, on the Actions menu, click Generate Outbound Advice. The Generate Outbound Advice (whinh4201m000) session opens.
    • Click Advice.
    • If the specified data for setup is correct and the ATT inventory is transferred between the project cost pegs, LN generates cost peg transfers of the type Borrow/Loan.
  7. Release Outbound Advice
    • In the Outbound Line Status Overview (whinh2129m000) session, on the Actions menu, click Release Outbound Advice. The Release Outbound Advice (whinh4202m000) session opens.
    • Click Release Advice to release the order.
    • If the specified data for setup is correct and the ATT inventory is transferred between the project cost pegs, LN processes the newly generated cost peg transfers of the type Borrow/Loan.
  8. Freeze/ Confirm the Shipment
    • In the Outbound Line Status Overview (whinh2129m000) session, on the Actions menu, click Freeze/Confirm. The Shipment Lines (whinh4131m000) session opens.
    • Select the shipment line. On the Actions menu, click Freeze.
    • On the shipment line details, click Stock Point Details. The Shipment Line Stock Point Details (whinh4133m000) session opens. On the Actions menu, click Generate Serials (only if the item is lot/ serial not in inventory).
    • Save and close the session.
    • In the Shipment Lines (whinh4131m000) session, click Confirm to confirm the shipment.
  9. Borrow or Loan
    • In the Cost Peg Transfer Lines (whinh1145m000) session, search for the cost peg transfer number that is created for the sales order.
    • Select the cost peg transfer line. On the Actions menu, click Cost Peg Transfers - Borrow/Loan. The Cost Peg Transfers - Borrow/Loan (whinh1646m000) session opens.
    • Select the borrow or loan line, On the Actions menu, click Finalize to finalize the borrow/ loan data. Specify the reason for manual finalization.
    • When the borrow or loan record is finalized manually, you can view the payback data for the specific borrow or loan in the Cost Peg Transfer - Payback Lines (whinh1148m000) session.
  10. Release to invoicing
    • In the Sales Order Line Status (tdsls4534s000) session, click Execute to release the sales orders/ schedules to invoicing.
  11. Create Billing Request
    • In the Billing Requests (cisli2100m000) session, specify the billing request series in the Billing Request field.
    • In the Billing Requests (cisli2100m000) details session, on Common tab, specify the Template and the Billing Request Addition codes.
    • On the Sales/Rebates/Self-Billed Invoices tab, specify the company code in the Logistic Company field and the order number in the Order field.
    • On the Actions menu, click Process. The Compose/Print/Post Invoices (cisli2200m000) session opens.
    • Select the Composing, Printing, Posting check boxes. Also select the Original option in the Printing group box. Click Continue.
    • Invoice is created with the order line amount.
  12. Process the order
    • In the Sales Order Line Status (tdsls4534s000) session, click Execute to process the delivered sales orders.
    • The Process Delivered Sales Orders (tdsls4223m000) session opens.
    • Click Process.