Costing breaks in Enterprise Planning and Manufacturing

Costing breaks override a project peg distribution of actual supply orders and move the related costs to different WBS levels on the same project.

Costing breaks are used to assign and track costs in Project. On a multilevel bill of material, costing breaks can be added on different levels. These costing breaks are indicated by lower level project peg codes for components, which differ from their parent item's project peg. Costs are moved from the main project peg to pegs that collect specific types of costs such as labour, material, subcontracting, or machine costs. In the BOM, you can apply costing breaks to routings, operations, work centers, or cost types. Multiple costing breaks can be applied to a BOM at the same time.

If the Costing Breaks check box is selected in the Implemented Software Components (tccom0100s000) session, before you can apply costing breaks to items, items must have a project peg distribution linked.

You can apply Costing breaks to nonpegged items. If the item is nonpegged, the Inherit Project Peg check box in the Items - General (tcibd0501m000) session determines how a project peg distribution is linked to these items. If this check box is selected, the item is treated as pegged and will have a peg distribution generated. If this check box is cleared, and no costing break is found for the nonpegged item during creation in, for example, the estimated materials, the order header project pegs are copied to the project peg distribution of the nonpegged item.