Project pegging in Procurement

To identify costs, demand, and supply for a project, you can implement project pegging. You can also specify the items for which project pegging is required. For more information, refer to Project pegging overview.

Note

To use project pegging in combination with costing breaks, you must select the Costing Breaks check box in the Implemented Software Components (tccom0100s000) session. For more information, refer to Costing Breaks.

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.

Generating a peg distribution

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:

Document Type for Peg Distribution	Business Object	Document Reference
RFQ Line	RFQ number	position/alternative
RFQ Response	RFQ number	position/alternative/bidder
Requisition Line	requisition number	position
Purchase Order Line	order number	position/sequence
Purchase Order Receipt	order number	position/sequence/receipt sequence
Purchase Order Material Supply Line	order number	position/sequence/material sequence
Stage Payment Line	order number	position/stage payment line
Purchase Schedule Line	schedule number	position
Purchase Schedule Receipt	schedule number	position/receipt sequence

Commingling pegs

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.

Example

Project 1 with activity 10 and project 1 with activity 20, have a requirement for an export licensed item.

Without an exception: One purchase order line with two distribution lines are created.
With an exception for one or both of the activities: One purchase order line per project peg, one purchase order with two purchase order lines are created.

Note

If commingling of pegs is not allowed, a new purchase schedule header must be created when generating schedule lines from Enterprise Planning. Therefore, multiple active schedules with the same item, buy-from business partner, ship-from business partner, purchase office, and warehouse can be available.

Handling peg data

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.

Note

The reason code applies to the entire peg distribution. So, when you change a single line in a peg distribution, the reason code is applied to all pegs in the peg distribution.
A message is displayed if a change reason is required. Based on the session, you must specify the change reason either in a field or window. If you do not specify a change reason, you cannot save the pegged purchase document.

Warehouse receipts

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.

If the required date and quantity cannot be retrieved from Enterprise Planning, the following is applicable:

Purchase order lines
The priority is based on the dates specified for the inbound order line peg distribution.
Purchase schedule lines
The priority is based on the dates specified for the purchase schedule line peg distribution. Schedule lines are not linked to individual inbound order lines because, for push schedules, goods are received against a blanket warehouse order, which is linked to the schedule header. During the receipt process for a required quantity, the pegs that match the total quantity to be received for the schedule lines are transferred to Warehousing for use in the receipt process. These schedule lines are transferred, based on line position and the (oldest) planned receipt date. The generated warehouse receipt line peg distribution is a subset of the (aggregated) peg distribution of the schedule lines.

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.

Purchase receipts

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.

Notes and related processes

Transactions
Planned inventory transactions, material transactions, and (financial) integration transactions are not generated for the parent document line, but for the peg distribution. Therefore, transactions are booked by peg.
Optional peg distribution
If project pegging is implemented but a project peg is not mandatory for an item, you can optionally specify a peg (distribution).
Requisition generated from catalog
If a purchase requisition line is generated from a catalog and the selected item requires a mandatory peg, the requisition line can be inserted without a peg distribution. LN does not check the availability of a purchase distribution before the requisition is submitted for approval.
Peg distribution and RFQ response line
After a bidder is linked to an RFQ, a record is inserted in the RFQ Responses (tdpur1506m000) session, but no peg distribution is linked. The RFQ line's peg distribution is copied to the response line when the status is set to Accepted. A peg distribution that is linked to a response line with the Accepted status cannot be updated.
Additional information fields
If a purchase document line, such as a requisition line, RFQ line, or purchase order line is generated or manually created and the line is project pegged, the additional information that is specified for the linked (project) contract line(s), is verified. The information in the additional fields of the project contract line(s) is transferred to the additional fields of the purchase document line, provided identical additional field names are specified for both tables in the Additional Information Definitions (tcstl2100m000) session. See Additional information for project pegged purchase documents.
Landed costs
If landed costs are linked to an order/schedule line with a peg distribution, the landed costs are proportionally calculated by peg and transferred to the Integration Transactions (tfgld4582m000) session, based on the peg distribution that is linked to the order/schedule line.
Supplier stage payments
If an item that requires a peg must be invoiced by supplier stage payments, a peg distribution is linked to a Stage Payment Line. For a combination of purchase order line/stage payment line, the Amount of the stage payment line is distributed across the distribution lines. The peg distribution is created when the stage payment line is approved and is deleted if the stage payment line is unapproved. For more information, refer to Pegging stage payment lines.
Subcontracting with material flow
For project pegged orders, operations or items can be subcontracted. In case of a project pegged subcontracting order with material flow, a peg distribution is linked to the Purchase Order Material Supply Line. For more information, refer to Pegging material supply lines for operation and item subcontracting.
Backorders
Backorder lines are handled as independent order lines. During backorder creation, the original distribution line number is specified in the Parent Distribution Line field of the Purchase Peg Distribution (tdpur5100m000) session. You can change, add, and delete peg distribution lines for a backorder line. The backorder line pegs need not be equal to the parent object line pegs. However, if the backorder line is linked to a purchase line for item subcontracting, you cannot add new pegs or modify the project, element, or activity of a distribution line that is linked to the backorder line.
Return orders
When returning pegged goods, specific conditions are applicable. For more information, refer to Pegging (return inventory) and Pegging (return rejects).