Peg distribution - 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. An increase of the inventory quantity at peg level is referred to as a gain and a decrease of 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
  1. For pegs that were previously subject to a loss:
    1. Pegs without excess inventory and without available to transfer (ATT) inventory, 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 inventory and without an economic shortage, in alphabetical order. LN considers full quantity for the peg.
    3. Pegs without excess and with available to transfer inventory, in alphabetical order. LN considers full quantity for the peg.
    4. Pegs with excess (in alphabetical order). LN considers full quantity for the peg.
    5. Inventory associated with a blank peg.
  2. For pegs that were not previously subject to a loss:
    1. Pegs without excess and without available to transfer inventory 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 inventory and without an economic shortage, in alphabetical order. LN considers full quantity for the peg.
    3. Pegs without excess and with available to transfer inventory, in alphabetical order. LN considers full quantity for the peg.
    4. Pegs with excess (in alphabetical order). LN considers the full quantity for the Peg.
    5. Inventory associated with a blank peg.
Priority sequence for losses
  1. For pegs that were previously subject to a gain. In case of multiple pegs, the pegs are selected in alphabetical order. LN checks for pegs:
    1. With excess, LN considers the excess quantity.
    2. With available to transfer inventory, LN considers the available to transfer inventory quantity.
    3. Without excess and without available to transfer inventory in sequence of latest requirement date first and considers full quantity for the peg
    4. Inventory associated with a blank peg.
  2. Pegs that were not previously subject to a gain, LN checks for pegs:
    1. With an excess inventory balance greater than zero and LN considers the excess quantity.
    2. With an available to transfer inventory balance and LN considers the available to transfer inventory quantity.
    3. Without excess and available to transfer inventory in sequence of latest requirement date first and LN considers the full quantity for the Peg.
    4. Inventory associated with a blank peg.

Related topics