Smart ERP Solutions presentation with Berlin Packaging covering use of Inventory Pegging features in PeopleSoft Financials Supply Chain. Inventory Pegging has been a feature in PeopleSoft Enterprise since version 8.9, but it is not often used or fully understood. Pegging provides the ability to link demand to incoming supply in order to prevent the incoming supply from being reserved, or allocated to another demand transaction. Covered is is an overview of the capabilities of Pegging, the setup that is required to use it properly, and a case study in Pegging with lessons learned.

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Inventory Pegging
Mary Gallitano
Application Development Manager – Berlin Packaging
Mary.Gallitano@Berlinpackaging.com
Steve Canter
Director, Global Service Delivery – Smart ERP Solutions
Steve.C@SmartERP.com

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Agenda
• Pegging Definitions
• Notifications
• Using Pegging Workbench
• Viewing Pegging Information
• Berlin Packaging Case Study

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What is Pegging?
• Pegging links demand to incoming supply.
• Demand can be either of the following:
• Sales Order
• Interunit Transfer going out
• Supply can be any of the following:
• Purchase Order
• Production ID
• Interunit Transfer coming in
• A Peg prevents the incoming supply from being
reserved to another Demand Line

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Hard Pegging
• A hard peg is created when a the Demand
creates a purchase order or PID to fulfill it.
• Direct Ship and Configured Sales Orders
are automatically Hard Pegged.
• Hard Pegs can also be created through
Alternative Sources of Supply in OM
• When hard pegged demand is changed or
canceled, the supply transaction is changed
(when allowed).

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Changes in Demand with Hard Pegs
• DS SO change allowed if PO is not Dispatched
or if Due Date has not passed (configuration)
• Configured SO change allowed if there is no
Production Pick Plan, material has not been
issued, and there is no Subcontract PO
• Changes in Quantity, Date, and Status
(cancelation) are automatically made to the
supply.
• If the transaction is past the point where the
change in supply is allowed, then the change is
not allowed in the demand.
• Changes to supply are not automatically made
in the demand.

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Soft Pegging
• A Soft Peg links an existing Demand Line to a
quantity of existing Supply.
• Example: A Sales Order for 100 units is
entered. There is already an open PO with
2,000 units due into the warehouse. The SO
can be soft-pegged to the PO to consume 100
pieces of the total that are coming in.
• Changes in soft-pegged demand have no
impact on the supply.
• Soft Pegging is done through Pegging
Workbench.

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Communicating Changes
• Changes to Pegged Supply or Demand
automatically generate notifications to the
appropriate person.
• OM messages sent to the Order Owner
• PO messages sent to the Buyer
• PID and IBU messages sent to the
designated person(s) for the Business
Unit
• Notifications are sent to the person’s
Worklist, available on the Home Page, or to
email.

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Viewing Notifications

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Notification Detail

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Using Pegging Workbench

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Peg SO to PO

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See Results

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View Pegging Information
• From the Sales Order Line, you can see the
PO or PID that is Pegged
• From the PO Schedule, you can see the
Sales Order that is Pegged.
• From PID Maintenance, you can see the
Sales Order that is Pegged.
• From the Stock Request Inquiry, you can
see the Pegging Information.
• From the Pegging Inquiry screens, you can
also directly transfer to the other
transaction.

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Pegging Inquiry in OM

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Pegging Inquiry in PID

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Pegging Inquiry in PO

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A Look Under the Covers
1

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Pegging XLATS

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Viewing Peg Status
SELECT PEG_STATUS, BUSINESS_UNIT, ORDER_NO, ORDER_INT_LINE_NO FROM
PS_IN_DEMAND WHERE BUSINESS_UNIT = '00049‘ AND ORDER_NO = '0430044923'
10 00049 0430044923 1

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Viewing Peg Status
SELECT PEG_STATUS, BUSINESS_UNIT, ORDER_NO, ORDER_INT_LINE_NO FROM
PS_IN_DEMAND WHERE BUSINESS_UNIT = '00049‘ AND ORDER_NO = '0430042421'
40 00049 0430042421 1

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Demand Hash Table
SELECT HASH_KEY, BUSINESS_UNIT, DEMAND_SOURCE,
SOURCE_BUS_UNIT, ORDER_NO, ORDER_INT_LINE_NO, SCHED_LINE_NBR,
INV_ITEM_ID, DEMAND_LINE_NO
FROM PS_IN_DEMAND_HASH
WHERE ORDER_NO = '0430044923'
85ReFbrcWlcr2yrB8em1VOzTOic= 00049 OM 43 0430044923 1 1 GLC-01056 2

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Supply Hash Tables

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Putting it Together

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Berlin Packaging
Case Study in Pegging

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Berlin Packaging
• Hybrid Packaging Supplier of Containers and
Closures
• Privately held company, headquartered in Chicago
• Over 30 locations nationwide
• PeopleSoft Financials and SCM Version 9.1
• PeopleTools 8.51
• Over 500 Active users of PeopleSoft
• Annual sales in excess of $700,000,000
• Live on PeopleSoft since 2001
• 9.1 upgrade completed in May, 2012

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Berlin Products

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• Drop Ship Purchase Orders
• Product Configurator
• Pegging Workbench (will eventually replace
Product Configurator completely)
Pegging At Berlin

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Drop Ship Process
• All Drop Ship order lines are automatically placed on
a Drop Ship line Hold
• Drop Ship Lines are manually removed from Drop
Ship Hold when the Purchase Order is Vouched and
Matched
• In 8.8 – the PO Information was stored in
ORD_SCHEDULE and the Order Information was
stored in PO_LINE_SHIP
• This relationship went away with the implementation
of Pegging
• We created a custom view – BP_ORD_SCHED_VW
– which uses the hash tables to have an easy way to
see the relationship between the order and Purchase
Order.

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Drop Ship Challenges
• User cancels Hard Pegged Drop Ship Purchase
Order, and then the Sales Order can’t be cancelled.
• NOTE – we train the users that the Demand should
be cancelled before the supply and they receive an
error message, but that doesn’t always stop the
problem from occurring.
• Resolution – SQL script to update the pegging status

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--replace C.ORDER_NO with B.PO_ID and get the same result.
-- Peg Status 10 = Open, 20 = Completed, 30 = Cancelled, 40 = Not
Pegged
SELECT B.BUSINESS_UNIT, B.PO_ID, B.LINE_NBR, B.SCHED_NBR,
C.BUSINESS_UNIT, C.ORDER_NO, C.ORDER_INT_LINE_NO,
C.SCHED_LINE_NBR, A.PEG_STATUS, A.SUPPLY_HASH,
A.DEMAND_HASH,A.HARD_PEG
FROM PS_IN_PEGGING A, PS_PO_HASH B, PS_IN_DEMAND_HASH C
WHERE C.ORDER_NO in ('xxxxxxxxx' )
--WHERE B.PO_ID = 'xxxxxxxxx'
AND B.HASH_KEY = A.SUPPLY_HASH
AND C.HASH_KEY = A.DEMAND_HASH
AND A.SUP_ORDER_TYPE = '010'
AND A.PEG_STATUS = 10
SQL for Drop Ships

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Product Configurator
• Berlin has customized Order Management to
automatically run the Create Production Request
Process when a configured item is ordered.
• The Subcontract PO Process is scheduled to run
every 10 minutes
• Our items are not truly “configured” as much as they
are “build on demand”
• We have a combination of Subcontract PIDs and In-
house Production

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• Supply is Hard Pegged for Configured items.
• Cannot be changed once the Subcontract PO is
created.
• This resulted in effectively preventing the field
from making changes to configured sales order
lines outside of a very tight window.
• Product Configurator will be going away with
future releases
Configurator Challenges

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• We are gradually eliminating the use of
Configured items.
• Sales order is created
• PID is then created
• Pegging Workbench is used to tie the 2 together
• It then becomes much easier to make changes
since the PID is now Soft Pegged to the Sales
Order.
Configurator

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• Sales Order Linked to a PID could be cancelled
without any warning
• Quantity decrease on a Sales Order caused the
peg to be changed from Hard to Soft
• Subcontract Streamline did not work with
Configured PID
• Changes made to configured Sales Orders had
unexpected results
• These are all bugs that have been resolved
with assistance from Oracle Support
Other Pegging Issues

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• We continue to utilize Pegging with Drop Ship
sales orders with very few problems.
• We have eliminated the majority of our
configured subcontracted items and utilize
pegging workbench to manage the relationships.
• Our Production Team has gotten more
comfortable with the pros and cons of utilizing
Pegging and the workarounds when things go
awry.
• Reviewing Use of Alternate Sources of Supply
Where are we today?

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• Pegging as delivered in 9.1 has a lot of bugs
• It does take some time for the business to
understand how Pegging works.
• BUT – it can add a great deal of value to the
business once you get past the training and
the initial bugs.
Conclusion

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APRIL 7-11, 2014
Sands Expo and Convention
Center
Las Vegas, Nevada
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Any Questions?