Cost peg transfer rules

Cost peg transfer rules determine the sources and the destinations that are allowed for cost peg transfers. If no transfer rules are specified in the Cost Peg Transfer Rules (tcpeg1100m000) session, cost peg transfers from and to project cost pegs of all planning groups within the company are allowed.

You can set transfer rules for the following levels:

  1. Planning group
  2. Project
  3. Element
  4. Activity

The planning group is the highest level. The rules set for a particular level also apply to the lower levels. You can select the Inherit Transfer In and Inherit Transfer Out check boxes to inherit the transfer rules from the preceding, higher level. For the highest level, planning group, the inherit options are not available, because this is the highest level.

Error message

When setting transfer rules, the following error message is displayed if the element and activity setup is not defined as recommended:

“Change the value of the Activity field. Reason: Work Authorization status of Project </Element/Activity/xyz> should be Released.”

You can maintain elements and activities in the Activities (tppss2100m000) and Elements (tpptc1100m000) sessions.

Borrow/loan and payback transfers

If you use borrow/loan and payback transfers, ensure that cost peg transfers in and out are allowed for the projects involved in these transfers. For example, to allow project A to borrow and pay back inventory to project B, you must allow transfers in and transfers out for both projects.

Alternatively, if the transfer rules that you specified do not allow transfers out for potential borrowing projects and thus rule out payback transfers, you can select the Ignore Cost Peg Transfer Rules for Paybacks check box in the Project Pegging Parameters (tcpeg0100m000) session. For the relevant projects, this allows payback transfers and rules out permanent transfers.

Cost peg transfer type

The Borrow / Loan value does not fully exclude permanent cost peg transfers for the specified planning group, project, element, or activity. If Borrow / Loan is specified in the Cost Peg Transfer Type field:

  • The generate outbound advice process will generate borrow/loan transfers if an inventory shortage is identified and ATT inventory if found at other projects. If excess inventory is present, however, the outbound advice process generates permanent transfers.
  • Enterprise Planning only considers excess inventory and ignores ATT inventory when generating permanent cost peg transfers.

If Permanent is specified, and the Use Available to Transfer check box is:

  • Selected

    Enterprise Planning and the outbound advice process generate permanent transfers from excess inventory, if present. If not, the permanent transfers are based on ATT inventory, if present.

  • Cleared

    Permanent transfers are generated from excess inventory, if present.

If none of the projects for which the setup allows cost peg transfers has sufficient ATT or excess inventory, LN generates no cost peg transfers and creates an inventory shortage report.

The Permanent value excludes borrow/loan transfers.

Note: If the Use Available to Transfer check box is cleared, only the Permanent value is available in the Cost Peg Transfer Type field. If this check box is selected, you can choose Permanent or Borrow / Loan in the Cost Peg Transfer Type field.