Project pegging in Procurement

Project pegging in Procurement includes pegging of project costs for purchase documents, such as requisitions, requests for quotation, purchase orders, and purchase (push) schedules. If the item specified for the purchase document requires a peg, a peg distribution must be linked to the document. As a result, the required quantity of the parent document 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 of a purchase order line, the purchased goods and the related costs are booked to these projects, elements, and activities.

When you save a purchase document line, a peg distribution can be generated in the Purchase Peg Distribution (tdpur5100m000) session. A peg distribution can be manually specified or automatically defaulted from other documents.

This table shows the documents stored on the distribution line and the related fields:

If purchase order/schedule lines are project pegged, commingling of pegs is subject to project combination checks. Commingling rules specified in Project Pegging in Common, determine if lines with different pegs can be commingled into one purchase order line or purchase schedule. In general, commingling is executed 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 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.

If the purchased goods and related costs are booked to only one project, the peg is displayed on the purchase document line. When you save the line, LN creates one distribution line for the peg distribution. Peg fields, quantities, or the ordered amount can be updated on both the parent document line and the distribution line, before the lines are synchronized. If additional pegs (distribution lines) are specified in the peg distribution, the peg fields are cleared on the parent document 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 document line. If the peg distribution's total quantity differs from the quantity on the parent document line, a message with regards to updating the parent document line is displayed: Peg distribution quantity does not match line total. Click OK to update 'Total'.

If the Manual Project Peg Modification check box is selected in the Project Pegging Parameters (tcpeg0100m000) session, for all manual actions that affect a peg distribution, you must specify a change reason in the pegged purchase document. The project peg changes and reason codes are logged in the Cost Peg Audit History (tpctm2500m000) session for analysis.

For partial warehouse receipts, pegs with the highest priority receive the quantities. The priority of the peg is based on the required date and quantity, as specified in Enterprise Planning, for the required purchase line. The peg with the earliest required date has the highest priority.

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 specified for the peg distribution, the peg distribution lines are also updated with the modified quantity. Based on the Warehouse Receipt Distribution Line field in Warehousing, the related distribution lines are updated in the Purchase Peg Distribution (tdpur5100m000) session.

For partial purchase receipts and invoice handling, priority rules are not used. Partial purchase receipts are proportionally distributed across the peg distribution lines. You cannot update pegging information on the purchase receipt. However, if a parent document line and the 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. If the received amount is changed for the order line, the amount change is proportionally distributed across the peg distribution lines.