Using cost peg supplying relationships
For large enterprises consisting of multiple business units, subassemblies manufactured in one business unit often must be delivered to another business unit in another logistic company. If project cost pegging is required, all costs must be tracked in both business units against their specific projects. In both companies, projects are set up, and a cost peg supplying relationship must be defined to establish a link between them. The cost peg supplying relationship links the demand cost peg from the demand company to the supply cost peg from the supply company.
Master data
Before you can use cost peg supplying relationships, these conditions must be met:
- The Project Pegging check box must be selected in the Implemented Software Components (tccom0100s000) session for both companies.
- The Inherit Project Peg or Mandatory Project Peg check boxes must be selected for the component in the Items (tcibd0501m000) session.
- A supplying relationship must be available for the component in the Supplying Relationships (cprpd7130m000) session of the receiving company.
- Identical item codes must be assigned to the component in both business units.
If the Use Identical Cost Pegs for Multi-Company Warehouse Transfers check box is cleared in the Project Pegging Parameters (tcpeg0100m000) session, and if delivery of a subassembly from another business unit is required, you must manually specify the cost peg supplying relationship in the Cost Peg Supplying Relationships (tppss3130m000) session of the receiving company. An entry appears in the Cost Peg Supplying Relationships (tppss3130m000) session of the supplying business unit to which the supplying cost peg data must be added. Additionally, through SocialSpace, a message can be sent to the supplying business unit to notify that the supplying cost peg must be added to this cost peg supplying relationship.
After the supplying cost peg is added by the supplying business unit, the status of the cost peg supplying relationship can be set to Completed. A cost peg supplying relationship with the Completed status can be used on a planned distribution order or (manual) warehouse transfer.
Planned distribution orders and warehouse transfers
If a demand order needs supply from a business unit in a different logistical company, a multicompany planned distribution order is generated for the project pegged demand using the Generate Order Planning (cprrp1210m000) session.
One planned distribution order can have multiple demand orders with different project pegs, and a peg distribution. For each of these pegs, Enterprise Planning uses the applicable cost peg supplying relationship to retrieve the project pegs for the planned inventory movements in the supplying company.
In the Transfer Order Planning (cppat1210m000) session of the receiving company, you can transfer a multicompany, cost pegged planned distribution order only to a warehouse transfer and not to a purchase order. The warehouse transfer uses the receiving and supplying cost pegs of the planned distribution order.
In case of a planned distribution order, the demand in the receiving company triggers the supply via a warehouse transfer. This table shows the various pegging options supported for this scenario.
| Planned distribution order | Supplying company | |||
|---|---|---|---|---|
| Mandatory Project Peg selected | Inherit Project Peg selected | Not cost pegged | ||
| Receiving company | Cost pegged | Receiving and supplying cost peg | Receiving and supplying cost peg | Receiving cost peg only |
| Not cost pegged | Not supported | No cost peg in both business units | No cost peg in both business units | |
You can also manually create a warehouse transfer. In this case, you must manually select a supplying cost peg based on which the receiving cost peg is retrieved. If multiple receiving cost pegs are linked to one supplying cost peg, all linked receiving cost pegs are shown from which you can make your selection. Alternatively, you can select an existing cost peg supplying relationship.
If no cost peg supplying relationship is found for the to be transferred supply, an error message is displayed.
In case of a manual warehouse transfer, the warehouse transfer is created in the supplying company before the receiving side is triggered. This table shows the various pegging options supported for this scenario.
| Manual warehouse transfer | Supplying company | |||
|---|---|---|---|---|
| Cost pegged | Not cost pegged | |||
| Receiving company | Mandatory Project Peg selected | Receiving and supplying cost peg | Not supported | |
| Inherit Project Peg selected | Receiving and supplying cost peg | No cost peg in both business units | ||
| Not cost pegged | Cost peg in supplying business unit only | No cost peg in both business units | ||
Updating cost peg supplying relationships
Planned distribution order
- If the receiving business unit changes the cost peg on the demand order, you must manually update the existing cost peg supplying relationship. To perform the update, the status of the cost peg supplying relationship must be Draft. After the cost peg supplying relationship is changed and the status set to Submitted, the supplying business unit can update the supplying cost peg.
- The supplying business unit can change the supplying cost peg on the cost peg supplying relationship if its status is Draft or Submitted.
- If the cost peg supplying relationship is changed after the warehouse transfer is created, you must manually delete the warehouse transfer or change the cost peg(s) on the warehouse transfer.
Manual warehouse transfer
- If the supplying business unit changes the supplying cost peg on the warehouse transfer, the existing cost peg supplying relationship is not changed. If required, the receiving business unit must manually change the receiving cost peg on the warehouse transfer.
- The supplying business unit can change the supplying cost peg on the cost peg supplying relationship if its status is Draft.
- The receiving business unit can change the ship-from or ship-to company on the cost peg supplying relationship if its status is Draft. After the cost peg supplying relationship is changed and the status set to Submitted, the supplying business unit can update the supplying cost peg.
- The receiving business unit can change the receiving cost peg on the cost peg supplying relationship if its status is Draft or Submitted.